Transcript Collapse of Political Consensus by 1979

Why was political consensus beginning to
collapse before 1979?
Learning objective – to be able to explain
how post war political consensus was
beginning to fail before 1979.
I can describe the key
features of post war
British
political
consensus and how it
was failing before
1979.
Grade D
I can explain why
post war British
political consensus
was failing before
1979.
Grade B
I can explain and assess
the reasons why post
war British political
consensus was failing
before 1979.
Grade A
Starter – What five questions could you ask
this photograph?
What was the traditional view of the
end of political consensus?
 The traditional and once accepted view was that the
election of Margaret Thatcher in 1979 saw the beginning
of the end of political consensus.
 Evidence of this view was drawn upon –
 Unemployment rising to 3 million in 1981.
 Sweeping privatisation of key industries.
 Monetarism replacing Keynesian economics.
 Curbing of Trade Union power.
But is this view correct?
Why was growing discord between the
government and the trade unions?
 The 1960s saw a period of growing inflation which both
Labour and Conservative governments tried to control with
wage and price controls.
 This led to tensions between governments and trade unions,
who led sporadic strikes throughout the 1960s.
 Harold Wilson’s Labour government felt its hands were tied as
the party was reliant on trade union funding and unable to
resist trade union demands.
 Although, Wilson tried to regulate strikes and limit union
power with proposals in the White Paper – In Place of Strife –
but this divided the government and fearing trade union
backlash the proposals were never made into law.
How did industrial relations help bring
down the Heath government?
 The Heath government passed the Industrial Relations Act in
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1971 to regulate strikes and industrial relations.
The Miners, constantly underpaid in the post war period,
confronted the government and demanded 33% pay increase.
Initially, the Heath government resisted these demands.
However, in 1972 the miners went on strike leading power
shortages. The government backed down and gave the miners
a 27% pay rise.
A second miners strike followed the oil crisis of 1973. This
forced the government to call a ‘three day week’ and a state of
emergency.
Heath called an election with the slogan ‘Who governs
Britain?’ He lost.
What was the impact of the fall of the
Heath government in 1974?
 Labour led a government between 1974 and 1979. They
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repealed the Industrial Relations Act and replaced it with
the ‘Social Contract’ – a voluntary prices and wages
control agreement.
This failed as trade union members wanted pay increases.
Industrial unrest culminated in the ‘Winter of Discontent’
in 1978-79.
Public support for trade unions collapsed.
Conservatives wanted to confront trade union power and
Thatcher’s election campaign in 1979 promised to do this.
How did the Heath government begin to challenge the
mixed management of the economy?
 Keynesian economics was the bedrock of political consensus.
However, it was seen to be failing in the 1960s with growing
inflation and a stagnating economy – stagflation.
 The first challenge to Keynesian consensus came with the
Heath government of 1970-74.
 The Heath government aimed to ‘ reduce the rise in prices,
increase productivity and reduce unemployment’ by
promoting a largely hands-off approach in matters of
government direction and to encourage people to use the new
freedom to promote their own interests.
 This was the first move towards free market principles of the
Thatcher government from 1979.
Why did Heath’s challenge to the
Keynesian approach fail?
 The budget of 1971 saw cuts in income
tax and government spending.
 However, economic policy was in tatters
by the end of 1971 as inflation soared
and production fell due to, in part, lack
of government intervention.
 Heath, losing his nerve, conducted a uturn in government policy and returned
to increasing government controls in
prices and incomes and interference in
industrial relations.
 It was also at this point that
unemployment reached one million for
the first time .... and the abandonment
of the commitment to full employment –
part of consensus politics.
Why did Callaghan ditch Keynesian
economics?
 The consequences of the 1973 oil crisis led to rapid inflation and the
pound falling in value to the extent by 1976, Britain was almost
bankrupt.
 Callaghan’s response in a key speech was –
‘We used to think you could spend your way out of a recession and
increase employment by cutting taxes and boosting government
spending .... That option no longer exists’
 Such was Britain’s position in 1976, the government negotiated a £3
billion loan from the International Monetary Fund. Britain could have
the loan only if they made major cuts in public spending.
 The impact of this was the abandonment of Keynesian economics,
formal withdrawal from the commitment to full employment and
paved the way for Thatcher’s more radical approach from 1979.
Task
Stick a copy of this comic
strip on a piece of card and
annotate
it by adding
relevant details beside each
panel.
Use
the
PowerPoint
presentation to help you.
Task
Design a mind map outlining the end of the post war political
consensus.
Remember –
 To include colour, key words and images.
 To include the key features of political consensus.
 To include the reasons why it existed and continued beyond
1951.
Extension task
Prepare an essay plan for the following question –
‘Consensus politics was over by 1979.’ How far do you agree
with this statement?
Plenary – My Brain
Subheading – My Brain
Draw an outline of your brain.
Fill your drawn brain with all the things you have learnt in this lesson.
This can be in the form of key words, drawings, bullet points, lists –
anything you like so long as it summarises your learning and that others
can understand it.