There was a failure to modernise traditional industries such as coal and engineering and old-fashioned management methods continued causing Britain's economy to run at an inflated cost which was also labour intensive - trade union influence kept a lot of workplaces overmanned and uneconomical. There was a rise in unemployment of 800,000 in 1963, worsening labour relations, exports behind imports, and a balance of payments deficit. Lastly, Britain's decision to not join the EEC prevented them from benefiting from the expansion of the European economy.
