Topic 1: End of Austerity

• Austerity in Post-war Britain


  Government policies post-WWII to control spending and rationing due to war debts, leading to restrictions on consumer goods and government expenditure.
• Post-war Britain Definition


  Period after WWII marked by economic, social, and political changes, including rationing, housing shortages, and rebuilding efforts.
• Rationing in Post-war Britain


  Controlled distribution of essential goods due to shortages caused by WWII, prioritizing resources for rebuilding and debt repayment.
• Economic Challenges in 1950s UK


  Managing war debts, limited imports, and increasing exports led to austerity measures, material shortages, and struggles with housing, welfare, and economic recovery.
• Rationing in Post-war Britain


  Rationing extended to food and materials post-WWII, mitigated by black market access for wealthy individuals and improved diet for poorer segments of society.
• Housing Crisis in Post-war Britain


  Destruction of a third of homes by German bombing led to housing shortage; expensive rent and housing prices forced people into overcrowded conditions, squats, or temporary shelters.
• Housing Solutions in Post-war Britain


  Aneurin Bevan's plan aimed to build 200,000 council houses annually to address demand fueled by post-war marriages, the baby boom, and demobilization; 55,400 houses and 157,000 pre-fabs were constructed in 1946.
• Post-war Britain Challenges


  Rationing, housing shortages, and welfare issues persisted after WWII, prompting government action.
• Beveridge's "Five Giants"


  Sir William Beveridge identified Want, Ignorance, Disease, Squalor, and Idleness as key issues to address for British welfare improvement.
• Welfare State Establishment


  Labour Government created Welfare State, introducing legislation to tackle education, housing, healthcare, and financial assistance.
• NHS Creation


  National Health Service (NHS) provided free medical care, facing initial challenges but gaining public support over time.
• Post-war Economic Challenges


  Britain faced housing shortages, increased national debt, and reliance on US aid after losing wealth in WWII and ending Lend-Lease support.
• Marshall Plan and Austerity


  The UK received $3000 million in aid from the USA's Marshall Plan in 1948, but continued austerity measures due to debt reliance, including currency devaluation and rationing.
• Currency Devaluation


  In 1949, Britain devalued the pound sterling (£) to boost exports by making British goods cheaper abroad, despite initial perceptions of humiliation.
• Nationalisation Policy


  The Labour government's policy of nationalisation aimed to bring key industries under government control by 1951, with goals of full employment, economic prosperity, and improved worker conditions.
• 1951 Festival of Britain


  Aimed to boost morale after rationing, showcase British innovation, and demonstrate readiness for the future, but criticized for its £8 million cost amidst shortages.
• Reasons for Labour's 1951 Election Loss


  Weaknesses within Labour, Conservative resurgence under Churchill, collapse of the Liberal Party, election timing, electoral system, and changes favoring the Conservatives.
• Labour Weaknesses


  Aging and ill politicians, association with austerity and rationing, internal policy divisions, and some unpopular decisions like currency devaluation.
• Conservative Revival


  Churchill's popularity, promises to maintain popular Labour reforms like the NHS, and increased support from businesses concerned about nationalization.
• Electoral Factors


  Impact of the First Past the Post system, redrawing of constituency boundaries, and new postal voting methods favoring the Conservatives.
• Post-war Political Consensus

  Both Labour and Conservatives agreed on the necessity of a Welfare State and some nationalization, with a shift occurring around 1951.
• Harold Macmillan's Statement


  Conservative Prime Minister from 1957-1963, Macmillan declared, "most of our people have never had it so good," reflecting a period of prosperity in the late 1950s.
• Prosperity in the Late 1950s


  Life in the UK improved significantly, with greater prosperity than ever before, characterized by economic growth and increased standards of living.
• Features of Britain's Affluence (1950s-60s)


  End of rationing and austerity, wage rises, tax cuts, increased overseas trade, reduced working hours, higher income per capita than anywhere except the USA, full employment, and rising consumerism.
• Consumer Spending


  Doubling in consumer spending over 13 years (1951-1964), fueled by increased disposable income, availability of hire purchase, and changing attitudes towards luxury items like TVs, refrigerators, and cars.
• Social Impact of Consumerism


  Consumerism led to a "Keeping up with the Joneses" mentality, influenced by advertising, but not everyone benefited, with some still struggling due to unemployment, low wages, gender or racial discrimination, or pension devaluation.
• Government Support for Prosperity: Housing


  Ministry of Housing established in 1951 to address housing shortages; initiatives included building new towns, council housing, and promoting owner-occupied homes.
• Government Support for Prosperity: Roads and Motorways


  Special Roads Act of 1949 facilitated motorway construction; opening of Britain's first motorway in 1958; consequences included changes to town landscapes, increased commuting, and access to supermarkets.
• Beeching Axe and Railway Modernization


  1962 report by Richard Beeching led to closure of over 2000 local stations, dismantling of 5000 miles of track, and loss of 160,000 jobs, aiming for modernization and cost-saving in the British railway network.
• Labour Party's Economic Vision


  Harold Wilson's "White Heat of Technological Revolution" aimed to position Labour as forward-looking, focusing on investment in science and technology for economic growth and consumer benefits.