1957-63 MacMillan Conservative

• Peter Thorneycroft


  In 1957 there was a balance of payments crisis brewing and Enoch Powell convinced Thorneycroft to slow the economy by making cuts which caused conflict with Macmillan
• In 1958 Thorneycroft 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 full employment, high inflation and better negotiating powers
• 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)
• 'The Night of the Long Knives'


  In 1962 there was a major reshuffle and 1/3 of the cabinet was sacked, beginning with Selwyn Lloyd
• 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 'pay pause' but the private sector did not follow this so there is a strike threat
• NEDC (National Economic Development Council) was established but was largely useless
• Reginald Maudling became Chancellor following the reshuffle. The Bank Rate is cut, the Purchase Tax on cars goes from 45% to 25% and tax cuts of £260 million
• As a result, there was an economic boom 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