Post-war Britain (1945–1979)
Post-war Britain | |||
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8 May 1945 – 3 May 1979 | |||
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Ceylon gained independence. Britain was a strong anti-Soviet factor in the Cold War and helped found NATO in 1949. Many historians describe this era as the "post-war consensus" emphasising how both the Labour and Conservative parties until the 1970s tolerated or encouraged nationalisation, strong trade unions, heavy regulation, high taxes, and a generous welfare state.[1]
The Labour Party introduced charges for NHS dental services and glasses in 1951.[2][3] The Conservatives returned to power in 1951, accepting most of Labour's post-war reforms, but introduced prescription charges to the NHS in 1952 and denationalised steel in 1953. They presided over 13 years of economic recovery and stability. However the Suez Crisis of 1956 demonstrated Britain was no longer a superpower. Ghana, Malaya, Nigeria and Kenya were granted independence during this period. Labour returned to power under Harold Wilson in 1964 and oversaw a series of social reforms including the partial decriminalisation of homosexuality and abortion, the relaxing of divorce laws and the end of capital punishment. Edward Heath returned the Conservatives to power from 1970 to 1974, and oversaw the decimalisation of British currency, the accession of Britain to the European Economic Community, and the height of the Troubles in Northern Ireland. In the wake of the 1973 oil crisis and a miner's strike, Heath introduced the three-day working week to conserve power. Labour made a return to power in 1974 but a series of strikes carried out by trade unions over the winter of 1978/79 (known as the Winter of Discontent) paralysed the country and as Labour lost its majority in parliament. The general election in 1979 took Conservative Margaret Thatcher to power effectively ending the post war state interventionist consensus of prior decades despite initial intense Labour opposition. Labour Government, 1945–1951Further information:
Second World War, the landslide 1945 election returned the Labour Party to power and Clement Attlee became Prime Minister of the United Kingdom.[4] The party quickly nationalised critical sectors of the economy, especially declining industries. The Bank of England was nationalised along with railways (see Transport Act 1947), coal mining, public utilities and heavy industry. The most controversial case was the takeover of the highly profitable[citation needed] iron and steel industry, which was opposed and finally reversed by the Conservatives.[5]
Welfare stateA comprehensive unemployment benefit, and funeral benefit. Various other pieces of legislation provided for child benefit and support for people with no other source of income.[6]
In the estimation of historians, and later politicians of the major parties, the most successful and permanent program was the creation of a health costs to a reasonable level, and how to finance the system in such a way that certainty and sufficiency of funds could be guaranteed."[8] Michael Foot adds that Bevan had to persuade "the most conservative and respected profession in the country to accept and operate the Labour government's most intrinsically socialist proposition."[9] In the end historians give Bevan the major credit for the success.[10]
One of the main achievements of Attlee's government was the maintenance of near labour shortages proved to be more of a problem. One area where the government was not quite as successful was in housing, which was also the responsibility of Aneurin Bevan. The government had a target to build 400,000 new houses a year to replace those which had been destroyed in the war, but shortages of materials and manpower meant that less than half this number were built.[11]
Foreign affairsMain article: History of the foreign relations of the United Kingdom
Despite the heavy American grants of European economy, and supporting anti-communist governments in Greece and elsewhere.[17][18] Bevin had the firm support of his party, especially Prime Minister Attlee, despite a left-wing opposition. Top American diplomats such as Dean Acheson trusted Bevin and worked through him.[19]
IndiaMain article: Partition of India
For decades the Conservatives were split on India between die-hard imperialists (led by Churchill) and moderate elements who tried to provide British economy, with large sums transferring back and forth, as well as fresh migrants arriving from India. In sharp contrast, France felt humiliated by its loss of its colonial empire, especially Algeria and Vietnam. The success in India encouraged and embolden the development programs of ambitious young British colonial officials in Africa and the rest of Asia.[30]
In sharp contrast, the British people were disappointed with their humiliation in Mandatory Palestine. They had managed to alienate both sides. Arabs and Jews had been fighting for years, in nasty conflicts that were still fierce seven decades later. The British decided to get out in 1948 so as not to further alienate their very large clientele in the Arab nations.[31][32] International relationsBritain became a founding member of the Mau Mau Uprising (1952–60) and against Egypt in the 1956 Suez Crisis .
FinancesMain article: Anglo-American loan
International finance was a troublesome issue, as Britain had used up all its reserves and had to borrow large sums from the United States and from the International Monetary Fund. The U.S. provided a loan of $3.75 billion (US$57 billion in 2017) at a low 2% interest rate; Canada loaned an additional US$1.19 billion (US$16 billion in 2017).[36] Starting in 1948, the United States provided grants of $3.3 billion (about US$33 billion in 2017). These funds came through the Marshall Plan and did not have to be repaid, however they carried the proviso that Britain modernise the management of its major corporations. The aid permitted Britain to provide consumption at tolerable levels despite the austerity. About 40 per cent of the dollars went for food, drink and tobacco from the U.S. and 40 per cent on raw materials. The remainder went mostly for machinery and oil.[37] By 1950, the Korean War caused a new heavy drain on the Treasury for military expenses. This caused the bitter split inside the Labour party. The Conservatives made austerity a major issue in the general election of 1950.[38] Labour lost most of its large majority. The swing was 3.6% against it and it lost 78 seats, leaving Attlee with a slim majority in the House.[39] However, a year later Labour lost the general election of 1951 despite polling more votes than in the 1945 election, and indeed more votes than the Conservative Party.[40][41] Conservative Government, 1951–1964Winston Churchill (1951–1955)Further information: Third Churchill ministry and Later life of Winston Churchill
Winston Churchill again became Prime Minister. His third government — after the wartime national government and the short caretaker government of 1945 — would last until his resignation in 1955. During this period he renewed what he called the "special relationship" between Britain and the United States, and engaged himself in the formation of the post-war order. His domestic priorities followed the post-war consensus with minor adjustments. However foreign policy crises took centre stage. They were partly the result of the continued decline of British military and imperial prestige and power. In February 1952, King George VI died and was succeeded by his eldest daughter Elizabeth II. Her coronation on 2 June 1953 gave the British people a renewed sense of national pride and enthusiasm which had been lowered by the war. Anglo-Iranian Oil DisputeMain articles: Nationalization of the Iranian oil industry, Abadan Crisis, and 1953 Iranian coup d'état
In March 1951, the Iranian parliament (the Majlis) voted to nationalise the Anglo-Iranian Oil Company (AIOC) and its holdings by passing a bill strongly backed by Mohammad Mosaddegh, who was elected Prime Minister the following April by a large majority of the parliament. The International Court of Justice was called in to settle the dispute, but a 50/50 profit-sharing arrangement, with recognition of nationalisation, was rejected by Mossadegh.[42] Direct negotiations between the British and the Iranian government ceased, and over the course of 1951, the British ratcheted up the pressure on the Iranian government and explored the possibility of a coup against it. U.S. President Truman was reluctant to agree, placing a much higher priority on the Korean War. Churchill's return to power and Dwight D. Eisenhower's presidency brought with them a policy of undermining the Mossadegh government.[43] Both sides floated proposals unacceptable to the other, each side believing that time was on its side. Negotiations broke down, and as the blockade's political and economic costs mounted inside Iran, coup plots arose from the army and pro-British factions in the Majlis.[44]
The Mau Mau RebellionMain article: Mau Mau rebellion
In 1951, grievances against the colonial distribution of land came to a head with the Kenya Africa Union demanding greater representation and land reform. When these demands were rejected, more radical elements came forward, launching the Mau Mau rebellion in 1952. On 17 August 1952, a state of emergency was declared, and British troops were flown to Kenya to deal with the rebellion. As both sides increased the ferocity of their attacks, the country moved to full-scale civil war. Malayan EmergencyMain article: Malayan Emergency
In Malaya, a rebellion against British rule had been in progress since 1948, led by Communists based in the local Chinese community. Once again, Churchill's government inherited a crisis, and once again Churchill chose to use direct military action against those in rebellion while attempting to build an alliance with those who were not. He stepped up the implementation of a "hearts and minds" campaign and approved the creation of fortified villages, a tactic that would become a recurring part of Western military strategy in South-East Asia, especially in the American role in the Vietnam War.[45][46] Anthony Eden (1955–1957)Further information: Eden ministry
Suez crisisMain article:
Suez crisis In April 1955, Churchill finally retired, and Dwight Eisenhower.[47]
On 26 July 1956 Mussolini who had to be stopped. In November 1956, after months of negotiation and attempts at mediation had failed to dissuade Nasser, Britain and France, in conjunction with Israel, invaded Egypt and occupied the Suez Canal Zone.
Commonwealth Relations Office, and Colonial Office had been slow to realise the need for change in Britain's world role. After Suez they started to heed Treasury warnings about the effect of high defence expenditure on the economy, and the slow growth of the British population compared with the United States and the Soviet Union. Historians often use the crisis to mark the end of Britain's status as a superpower, being able to act and control international affairs without assistance or coalition.[49]
Harold Macmillan (1957–1963)Further information: Conservative government, 1957–1964
Eden resigned in the wake of the Suez Crisis, and his Chancellor of the Exchequer, Harold Macmillan succeeded him as Prime Minister on 10 January. He brought the economic concerns of the exchequer into the premiership, but his approach to the economy was to seek high employment; whereas his treasury ministers argued that to support the Bretton Woods system's requirement on the pound sterling would require strict control of the money base, and hence a rise in unemployment. Their advice was rejected and in January 1958, all the Treasury ministers resigned. Macmillan brushed aside this incident as 'a little local difficulty'.[50] Macmillan wanted the new National Incomes Commission to institute controls on income as part of his growth without inflation policy; it failed when the trade unions boycotted it.[51] One of Macmillan's more noteworthy actions was the National Service ended gradually from 1957; in November 1960 the last men entered service. With British youth no longer subject to military service and with post-war rationing and reconstruction ended, the stage was set for the social uprisings of the 1960s to commence.
Macmillan took close control of foreign policy. He worked to narrow the post-Suez rift with the US, where his wartime friendship with Wind of Change speech in February 1960 indicating his policy. Ghana and Malaya were granted independence in 1957, Nigeria in 1960 and Kenya in 1963. However, in the Middle East Macmillan ensured Britain remained a force — intervening over Iraq in 1958 (14 July Revolution) and 1960 and becoming involved in Oman. Immigrants from the Commonwealth flocked to England after the British Government posted invitations in the British West Indies , for Workers to come to England to "help the mother Country".
He led the Tories to victory in the October 1959 general election, increasing his party's majority from 67 to 107 seats. Following the technical failures of a Common Market was vetoed by French President Charles de Gaulle on 29 January 1963, in due to his fear that 'the end would be a colossal Atlantic Community dependent on America', and personal anger at the Anglo-American nuclear deal.[54]
Britain's a major Cabinet change in July 1962 but he continued to lose support from within his party.
He resigned on 18 October 1963 after he had been admitted to hospital for prostate trouble. He died 23 years later, in 1986. Alec Douglas-Home (1963–1964)Macmillan's successor was the earldom and, as "Sir Alec Douglas-Home", contested a by-election in the safe seat of Kinross & West Perthshire. He won and is the only prime minister to resign the Lords to enter the Commons. His demeanor and appearance remained aristocratic and old-fashioned, however. His understanding of economics was primitive, and he gave his chancellor Reginald Maudling free rein to handle financial affairs. Home's few domestic policies were not well received, but he did abolish retail price maintenance, which allowed consumers to find more bargains on sale. He enjoyed dealing with foreign policy, but there were no major crises or issues to resolve. His Foreign Minister Rab Butler was not especially energetic. Britain's application to join Europe had already been vetoed by de Gaulle, the Cuban Missile Crisis had been resolved, and Berlin was again on the back burner. Decolonisation issues were largely routine, and the Rhodesia and South African crises lay in the future.[56]
In the 1964 general election, the Labour Party was returned to power under Harold Wilson. Douglas-Home became Leader of the Opposition. In July 1965, Edward Heath defeated Reginald Maudling and Enoch Powell to succeed him as Conservative Party leader. Enoch Powell was given the post of Shadow Defence Secretary and became a figure of national prominence when he made the controversial Rivers of Blood speech in 1968, warning on the dangers of mass immigration from Commonwealth nations. It is possible that the Conservatives' success in the 1970 general election was a result of the large public following Powell attained, even as he was sacked from the shadow cabinet. "Thirteen Wasted Years!""Thirteen Wasted Years!" was a popular slogan attacking the Conservative record 1951–1964. Criticism came primarily from Labour. In addition there were attacks by the right wing of the Conservative Party itself for its tolerance of socialist policies. The critics contend that Britain was overtaken by its economic competitors, and was unable to prevent a troublesome wage-price upward spiral. Historian Graham Goodlad calls for taking a longer perspective. He argues that there were significant advances in transport, healthcare, and higher education. It is unrealistic to expect that Britain could have continued as a world power after the huge expense of the Second World War, and the independence of India and other colonies. Goodlad says the Conservative foreign-policy leadership properly adjusted Britain's world role by building an independent nuclear capacity and maintaining a leading role in world affairs, and anyway successive governments seldom did a better job.[57][58] Labour Government, 1964–1970Further information: Labour government, 1964–1970
Harold WilsonIn 1964, Labour regained the premiership, as Harold Wilson narrowly won the general election with a majority of five. This was not sufficient to last for a full term and, after a short period of competent government, in March 1966, he won re-election with a landslide majority of 99. As Prime Minister, his opponents accused him of deviousness, especially over the matter of devaluation of the pound in November 1967. Wilson had rejected devaluation for many years, yet in his broadcast had seemed to present it as a triumph. Open UniversityMain article: Open University
Wilson regarded with special pride setting up the Open University as a model for Europe. Plans were drafted by Jennie Lee, the Minister for the Arts; she had Wilson's full support. He saw the Open University as a major marker of the Labour Party's commitment to modernisation. He emphasised that it would strengthen a more competitive economy while also fostering greater equality of opportunity and social mobility. He especially favoured heavy use of technology, such as television and radio broadcast of its courses. There were strong doubters and opponents in the government and in commercial broadcasting; Wilson outmaneuvered them to get the budget approved, even though its sums proved far too small.[59] Vietnam WarOverseas, Wilson was troubled by crises in Rhodesia and South Africa. The Vietnam War was a delicate issue, as President Lyndon B. Johnson urgently needed a symbolic British military presence. "Lyndon Johnson is begging me even to send a bagpipe band to Vietnam," Wilson told his Cabinet in December 1964. Labour decided not to antagonise its strong antiwar element and refused Johnson's pleas.[60] However, Wilson provided the Americans with intelligence, military weapons, and jungle training, and allowed some 2000 British soldiers to volunteer for service in Vietnam.[61] Industrial strikeSee also: In Place of Strife In addition to the damage done to its reputation by devaluation, Wilson's Government suffered from the perception that its response to industrial relations problems was inadequate. A six-week strike of members of the National Union of Seamen, which began shortly after Wilson' re-election in 1966, did much to reinforce this perception, along with Wilson's own sense of insecurity in office. Conservative Government, 1970–1974Further information: Heath ministry
Edward HeathThe premiership of his successor, William Whitelaw to hold unofficial talks in London with a Provisional Irish Republican Army delegation by Seán Mac Stíofáin. In the aftermath of these unsuccessful talks, the Heath government pushed for a peaceful settlement with the democratic political parties. In 1974, the Sunningdale Agreement was produced but fiercely repudiated by many Unionists and the Ulster Unionist Party ceased to support the Conservatives at Westminster.
Heath took the United Kingdom into the Ulster Unionist MPs refusing to support the Conservatives. Heath began negotiations with the Liberal Party under Jeremy Thorpe to form a coalition , but, when these failed, resigned as Prime Minister.
Labour Government, 1974–1979Main article:
Labour government, 1974–1979 Harold Wilson (1974–1976)Heath was replaced by Harold Wilson, who returned on 4 March 1974 to form a minority government. Wilson was confirmed in office, with a three-seat majority, in a second election in October of the same year.[63] It was a manifesto pledge in the general election of February 1974 for a Labour government to re-negotiate better terms for British membership in the European Economic Area, and then hold a referendum on whether Britain should stay in the EEC on the new terms. After the House of Commons voted in favour of retaining the Common Market on the renegotiated terms, a referendum was held on 5 June 1975. A majority were in favour of retaining the Common Market.[64] But Wilson was not able to end the economic crisis. Unemployment remained well in excess of 1,000,000, inflation peaked at 24% in 1975, and the national debt was increasing. The rise of punk rock bands such as the Sex Pistols and The Clash were a reflection of the discontent felt by British youth during the difficulties of the late 1970s. James Callaghan (1976–1979)Wilson announced his surprise resignation on 16 March 1976 and unofficially endorsed his Foreign Secretary James Callaghan as his successor. His broad popularity in many parts of the Labour movement saw him through three ballots of Labour MPs, defeating the arch-Bevanite Michael Foot, the main left-wing candidate. Callaghan was the first Prime Minister to have held all three leading Cabinet positions — Chancellor of the Exchequer, Home Secretary and Foreign Secretary — prior to becoming Prime Minister.[65] Callaghan's support for and from the union movement should not be mistaken for a left wing position. Callaghan continued Wilson's policy of a balanced Cabinet and relied heavily on Michael Foot. Foot was made Leader of the House of Commons and given the task of steering through the government's legislative programme. Callaghan's time as Prime Minister was dominated by the troubles in running a Government with a minority in the House of Commons; by-election defeats had wiped out Labour's three-seat majority by early 1977. Callaghan was forced to make deals with minor parties in order to survive, including the Lib–Lab pact. He had been forced to accept referendums on devolution in Scotland and Wales (the first went in favour but did not reach the required majority, and the second went heavily against). However, by the autumn of 1978 the economy was showing signs of recovery – although unemployment now stood at 1,500,000, economic growth was strong and inflation had fallen below 10%.[66] Most opinion polls were showing Labour ahead and he was expected to call an election before the end of the year. His decision not to has been described as the biggest mistake of his premiership[citation needed]. Callaghan's way of dealing with the long-term economic difficulties involved pay restraint which had been operating for four years with reasonable success. He gambled that a fifth year would further improve the economy and allow him to be re-elected in 1979, and so attempted to hold pay rises to 5% or less. The Trade Unions rejected continued pay restraint and in a succession of strikes over the winter of 1978/79 (known as the Winter of Discontent) secured higher pay, although it had virtually paralysed the country, tarnished Britain's political reputation and seen the Conservatives surge ahead in the opinion polls.[67][68] He was forced to call an election when the House of Commons passed a Motion of No Confidence by one vote on 28 March 1979. The Conservatives, with advertising consultants Saatchi & Saatchi, ran a campaign on the slogan "Labour isn't working." As expected, Margaret Thatcher (who had succeeded Edward Heath as Conservative leader in February 1975) won the general election held on 3 May, becoming Britain's first female prime minister. Historian Kenneth O. Morgan states:
Historians Alan Sked and Chris Cook have summarised the general consensus of historians regarding Labour in power in the 1970s:
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