THE END OF POST-WAR CONSENSUS (1870 - 1879) - HEATH'S GOVERNMENT

HEATH AS LEADER
1. Had served as the LONGEST POST-WAR CONSERVATIVE LEADER since Winston CHURCHILL.
  1. 5 years.
2. The FIRST Conservative leader to be ELECTED by the members of the CONSERVATIVE PARTY themselves!
3. Had been EDUCATED at STATE SCHOOLS, rather than the traditional, stagnancy of 'Establishment' / 'Old Etonians.'
  1. The SON of a BUILDER.
4. Good at POLICIES, but not POLITICS.
  1. NOT politically skilful.
  2. Too HONEST for his own good; 'lacked a BACKBONE.'
  3. Not DEVIOUS.
  4. Stiff and prickly demeanour.
5. At the time of his rise to leadership, Heath seemed WELL PREPARED for GOVERNMENT; AS HE HAD spent his time in opposition for developing detailed ECONOMIC MODERNISATION and INDUSTRIAL RELATIONS policies.
  1. He declared that he was adopting, "a new style of government," and that he intended to, "reduce the rise in prices, increase productivity and reduce unemployment."
    1. Edward Heath
  2. Had been the CHIEF NEGOTIATOR for the FIRST APPLICATION FOR E.E.C ENTRY between 1961 to 1963.
6. Heath DIFFERED from Wilson in that it was his intention to BREAK with the POST-WAR CONSENSUS that had broadly dominated STATE INTERVENTION in SOCIAL and ECONOMIC matters!
  1. This attitude summed up the term, 'SELSDON MAN,' or the, 'NEW RIGHT,' -- the 'new type' of CONSERVATIVISM.
7. Margaret Thatcher
  1. The KEY CHALLENGER to Conservative Party leadership.
  2. DEFEATED Heath, and took over CONSERVATIVE LEADERSHIP in FEBRUARY, 1975.
    1. Evoked right-winged policies compared to Heath.
      1. Had STRAINED RELATIONS with Heath for the rest of his political career!
  3. "By his humble background, by his grammar school education and by the fact of his democratic election."
    1. Speaking about Heath in 2005, following his death.
POLITICAL AND ECONOMIC POLICIES POLICIES
1. CONSERVATIVE PARTY CONFERENCE
  1. January, pre-1970 election.
    1. Selsdon Park.
  2. Announced a POLICY PROGRAMME that introduced the foundations for the CONSERVATIVE MANIFESTO at the 1970 election...
    1. TAX reforms.
    2. Better LAW and ORDER.
    3. Reforms to TRADE UNIONS
    4. CUTS to PUBLIC SPENDING.
    5. CONTROLS on IMMIGRATION.
    6. END of PUBLIC SUBSIDY for 'LAME DUCK' INDUSTRIES.
      1. An industry that is UNABLE to COMPETE and SURVIVE without STATE SUPPORT.
2. Heath believed in, 'ONE NATION TORYISM,' and the POST-WAR CONSENSUS.
  1. The SELSON PARK PROGRAMME was NOT intended to be an ENTIRE REJECTION of the POST-WAR CONSENSUS POLICIES!
3. REFORMS
  1. SCHOOL LEAVING AGE was RAISED from 15 to 16.
    1. 1st September, 1972.
  2. The introduction of DECIMALISATION...
    1. 100 pence instead of the 144 old pennies in the £
      1. RESEMBLED other EUROPEAN CURRENCIES.
    2. The IDEA was put forward in 1971...
      1. ... but didn't come into practice until 1971.
4. Anthony Barber
  1. New Chancellor of the Exchequer.
  2. STAGFLATION
    1. Introduced TAX CUTS to encourage INVESTMENT, but instead a RAPID RISE in INFLATION took place!
      1. The 'BARBER BOOM.'
      2. This was NOT accompanied by ECONOMIC GROWTH! Instead, UNEMPLOYMENT FIGURES ROSE, – an unexpected turn of events to occur during a period of inflationary increases – and subsequently led to the coining of the term, ‘stagflation.’
        Unemployment started to edge towards explosive figures of ONE MILLION!
        Initially, Heath’s government had promised to reduce state intervention in industry, but by 1971, the nationalisation of Rolls Royce and state loans into, ‘lame duck,’ industries such as the, ‘Upper Clyde Shipbuilders,’ evoked feelings of hypocrisy...
        ... This showed a rejection of free-market policy because the government were now intervening within key industrial relations; a factor that they had been adamant to avoid in doing within the Conservative Party’s manifesto.
        The 'U-TURN.'
        Pragmatism (Heath’s underlying motive for political policies) —a concern for the effects on employment and therefore on votes—resulted in a large government loan...
        ... Then, in February 1972, during a debate on unemployment, the decision was announced to bail out this latest "lame duck" with state aid.
        WHY?
        This showed a rejection of free-market policy because the government were now intervening within key industrial relations; a factor that they had been adamant to avoid in doing within the Conservative Party’s manifesto.
        A 1969 memorandum written by the marketer Nicholas Ridley had advocated a complete government withdrawal from UCS but this kind of ideological approach was, even after Selsdon, in reality unacceptable.
    2. Introduced CUTS in PUBLIC SPENDING.
  3. THE OIL CRISIS
    1. October, 1973
    2. An unexpected turn of events...
      1. UNEMPLOYMENT had actually FALLEN to 500,000
      2. GOVERNMENT INVESTMENT into MODERNISING INDUSTRY appeared to be successful.
    3. The YOM KIPPUR WAR in the Middle East caused O.P.E.C to announce a SUDDEN BAN on OIL EXPORTS...
      1. ... OIL PRICES accelerated to 4 TIMES above normal!

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THE END OF POST-WAR CONSENSUS (1870 - 1879) - HEATH'S GOVERNMENT

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