Period Policies Successes Failures
Conservative - Keynesian economy: the government could interfere to regulate the stages of boom 😊 considered as age of 🙁 economy trapped in the
s 1951-64 and decline; it was alright to run deficit budgets affluence cycle of stop-go, no coherent
- consensus: unemployment more important than inflation 😊 availability of credit plan for development
😊 more mod cons, TVs 🙁 prosperity based not on
1951-52: rejection of the ROBOT scheme (self-regulated economy) due to fear of 😊 post war boom – economic earnings and income, but on
unemployment recovery (end of rationing in borrowing
1954) 🙁 rising inflation (the growth
Expansionist budgets and cuts on taxes before the elections to appeal to the voters. 😊 full employment due to rising in wages was bigger than the
1955 – Butler’s boom - ‘give-away’ budget with tax cuts of 130 million demands of import and export increase in production) by the
1959 – tax cuts of 340 million 😊 growth of service industries end of Macmillan’s term
This was followed by deflator measures 😊 higher income (from 8 to 18 🙁 difficulties restraining
pounds) wage growth due to union
Planning (under Macmillan): power
1957 – rejection of monetarism suggested by Thorneycroft 😊 taxation remained high to
1961 - a loan from IMF (followed by the EEC application) control spending and inflation
🙁 ‘events, dear boy, events’ -
1961 – NEDI (National Economic Development Council) economic policies were
1962 – NIC (National Incomes Commission): attempts to negotiate with the unions responding to events, rather
and businesses than directing them
… strengthened the position of the unions 🙁 balance of payments
… failure demonstrated the need to join the EEC (more imports than exports)
🙁 Suez crisis put pressure on
1963 – the Beeching report: recommendation of massive cuts in rail network the pound (need for a loan
🙁 public outrage (but new motorways were built instead) from the US) - run on the
pound
EFTA – economic collaboration between Commonwealth countries, and those not
involved in EEC
🙁 not as successful as EEC
1963 – de Gaulle vetoed Britain’s application to EEC (due to fears of domination,
reluctance to make concessions about Common Agricultural Policy)
Labour 1964- - Wilson continued consensus, but emphasised modernisation and spending on 😊 political successes in 1966 – 🙁 deficit of 800 million from
70 welfare the electorate impressed by the the Conservatives
modernising approach
Department of Economic Affairs (under controversial George Brown): planning 1967 – Devaluation by 14%
economy with the National plan and economic planning councils (local) 😊 Devaluation boosted 🙁 seen as a weakness, and
🙁 clashes with the Treasury (and Chancellor Callaghan) due to misunderstanding economy and exports contributed to the image of
, about the roles (rumours about spying on each other) the Party of devaluation
😊 tough economic measures in 🙁 Wilson’s lie about the
1967 – loan from IMF on the terms of cutting public spending the late 60s (raised taxes, cut in pound in the pocket not being
government spending) brough affected
Industrial relationships some economic recovery:
- trade unions grew in power and demanded pay settlements to match up with the inflation of 12% and balance of 🙁 second application to the
inflation and rising prices payment surplus EEC in 1967 failed
An Incomes and Prices Board to regulate them (prices and incomes policy)
🙁 upset the unions, (Frank Cousin – Minister of Technology – resigned)
1966-67 series of wildcat strikes from seamen and dockers disrupted exports and
imports: increased inflation. Plus, the war in te Middle East affected oil supplies
(rising prices)
1969 – In Place of Stife: white paper from Barbara Castle about regulation of strikes
Conservative - attempts to end the consensus and stop supporting ‘lame duck’ industries; end of 😊 reforms: British currency 🙁 Barber boom (tax cuts by 1
s 70-74 the incomes and prices boards became decimal million led to) stagflation –
- decrease in the public spending: end of the free school milk inflation without economic
🙁 inflation rose to 15% rise
🙁 industrial output fell
U-turn: Nationalisation of Rolls Royce, as unemployment rose to 1 million 🙁 attempts to break the
consensus failed
1973 – the Yom Kippur War affected oil supply, and exports stopped with the prices 🙁 trade union power rose
rocketing
1973 – final entry into the EEC
Industrial relations
1971 – Industrial act: unions were expected to register with the government to hold
strikes; cooling-off period, strike ballots; National Industrial Relations Court (NICR)
judged the legitimacy of the strikes
🙁 angered the unions, who did not register
NUM strike in 1972 led by Scargill: against the increase in pit closures, wage setting
for the miners; flying pickets to prevent the movement of coal (travelling strikers)
🙁 social impact: three-days week, disruption of electricity and heating, questioning
of the strength of the government
🙁 government failed to negotiate with the unions and compromise
Conservative - Keynesian economy: the government could interfere to regulate the stages of boom 😊 considered as age of 🙁 economy trapped in the
s 1951-64 and decline; it was alright to run deficit budgets affluence cycle of stop-go, no coherent
- consensus: unemployment more important than inflation 😊 availability of credit plan for development
😊 more mod cons, TVs 🙁 prosperity based not on
1951-52: rejection of the ROBOT scheme (self-regulated economy) due to fear of 😊 post war boom – economic earnings and income, but on
unemployment recovery (end of rationing in borrowing
1954) 🙁 rising inflation (the growth
Expansionist budgets and cuts on taxes before the elections to appeal to the voters. 😊 full employment due to rising in wages was bigger than the
1955 – Butler’s boom - ‘give-away’ budget with tax cuts of 130 million demands of import and export increase in production) by the
1959 – tax cuts of 340 million 😊 growth of service industries end of Macmillan’s term
This was followed by deflator measures 😊 higher income (from 8 to 18 🙁 difficulties restraining
pounds) wage growth due to union
Planning (under Macmillan): power
1957 – rejection of monetarism suggested by Thorneycroft 😊 taxation remained high to
1961 - a loan from IMF (followed by the EEC application) control spending and inflation
🙁 ‘events, dear boy, events’ -
1961 – NEDI (National Economic Development Council) economic policies were
1962 – NIC (National Incomes Commission): attempts to negotiate with the unions responding to events, rather
and businesses than directing them
… strengthened the position of the unions 🙁 balance of payments
… failure demonstrated the need to join the EEC (more imports than exports)
🙁 Suez crisis put pressure on
1963 – the Beeching report: recommendation of massive cuts in rail network the pound (need for a loan
🙁 public outrage (but new motorways were built instead) from the US) - run on the
pound
EFTA – economic collaboration between Commonwealth countries, and those not
involved in EEC
🙁 not as successful as EEC
1963 – de Gaulle vetoed Britain’s application to EEC (due to fears of domination,
reluctance to make concessions about Common Agricultural Policy)
Labour 1964- - Wilson continued consensus, but emphasised modernisation and spending on 😊 political successes in 1966 – 🙁 deficit of 800 million from
70 welfare the electorate impressed by the the Conservatives
modernising approach
Department of Economic Affairs (under controversial George Brown): planning 1967 – Devaluation by 14%
economy with the National plan and economic planning councils (local) 😊 Devaluation boosted 🙁 seen as a weakness, and
🙁 clashes with the Treasury (and Chancellor Callaghan) due to misunderstanding economy and exports contributed to the image of
, about the roles (rumours about spying on each other) the Party of devaluation
😊 tough economic measures in 🙁 Wilson’s lie about the
1967 – loan from IMF on the terms of cutting public spending the late 60s (raised taxes, cut in pound in the pocket not being
government spending) brough affected
Industrial relationships some economic recovery:
- trade unions grew in power and demanded pay settlements to match up with the inflation of 12% and balance of 🙁 second application to the
inflation and rising prices payment surplus EEC in 1967 failed
An Incomes and Prices Board to regulate them (prices and incomes policy)
🙁 upset the unions, (Frank Cousin – Minister of Technology – resigned)
1966-67 series of wildcat strikes from seamen and dockers disrupted exports and
imports: increased inflation. Plus, the war in te Middle East affected oil supplies
(rising prices)
1969 – In Place of Stife: white paper from Barbara Castle about regulation of strikes
Conservative - attempts to end the consensus and stop supporting ‘lame duck’ industries; end of 😊 reforms: British currency 🙁 Barber boom (tax cuts by 1
s 70-74 the incomes and prices boards became decimal million led to) stagflation –
- decrease in the public spending: end of the free school milk inflation without economic
🙁 inflation rose to 15% rise
🙁 industrial output fell
U-turn: Nationalisation of Rolls Royce, as unemployment rose to 1 million 🙁 attempts to break the
consensus failed
1973 – the Yom Kippur War affected oil supply, and exports stopped with the prices 🙁 trade union power rose
rocketing
1973 – final entry into the EEC
Industrial relations
1971 – Industrial act: unions were expected to register with the government to hold
strikes; cooling-off period, strike ballots; National Industrial Relations Court (NICR)
judged the legitimacy of the strikes
🙁 angered the unions, who did not register
NUM strike in 1972 led by Scargill: against the increase in pit closures, wage setting
for the miners; flying pickets to prevent the movement of coal (travelling strikers)
🙁 social impact: three-days week, disruption of electricity and heating, questioning
of the strength of the government
🙁 government failed to negotiate with the unions and compromise
