In 1957 there was a balance of payments crisis brewing and EnochPowell convinced Thorneycroft to slow the economy by making cuts which caused conflict with Macmillan
In 1958Thorneycroft resigned and was replaced by Dereck Heathcoat-Amory and then in 1960 Selwyn Lloyd
Following the success in housing and failure of the Suez crisis, Macmillan became PM
Macmillan
Had a reputation as 'supermac' as he was unflappable and paternalistic
The 1959 election win was aided by fullemployment,highinflation and better negotiatingpowers
Macmillan was criticised for Stop-Go economics benefitting his election campaign
The 1959 election results: Conservatives 49.4% (365 seats), Labour 43.8% (258 seats), Liberals 5.9% (6 seats)
'TheNight of the Long Knives'
In 1962 there was a majorreshuffle and 1/3 of the cabinet was sacked, beginning with SelwynLloyd
Productivity grew slower than inflation which became known as Stagflation. Britain's GDP was growing slower than Europe at 2-3% compared to 5%
Purchase tax and the Bank Rate were raised and there was a public sector 'paypause' but the private sector did not follow this so there is a strike threat
NEDC (National Economic Development Council) was established but was largelyuseless
Reginald Maudling became Chancellor following the reshuffle. The BankRate is cut, the Purchase Tax on cars goes from 45% to 25% and tax cuts of £260 million
As a result, there was an economicboom as Real Wages increased 19% and Home ownership 44%, consumerism also reached a high as vacuum cleaners owned by 75%, washing machines, TVs, fridges etc.
The EEC (European Economic Committee) refused Britain's 1961 application to join. De Gaulle (France) vetoed Britain and Germany supported this decision
This led to the mid 60s introduction of metric units and decimal currency in 1971
Profumo affair
John Profumo (Secretary Of State For War) had an affair with Christine Keeler who was also having an affair with Russian (Naval Attache) Yevgeny Ivanov who was a spy
This scandal involved Cambridge students being bribed and blackmailed into spying for the Soviet Union as they increased power and progressed into politics
Satire
'Beyond the Fringe', 'That was the Week that was' and 'Private Eye'satire grew in popularity, even with Queen Elizabeth