The Making of Modern Britain: Lecture on Harold Wilson's Government (1964-1970)

Overview of the Period

• Focus on the Labour Government under Prime Minister Harold Wilson from 1964 to 1970.
• Examination of Wilson's leadership, political style, and economic challenges.

Harold Wilson's Election Victories

1964 Election

• Context: Britain had been under Conservative rule; the choice of Alec Douglas-Home, an aristocrat, as Conservative leader seemed outdated.
• Wilson's Strategy:
  • Portrayed as an ordinary man, relatable, grammar school background.
  • Emphasized modernization, especially in science and technology.
  • Critiqued Conservatives for economic stagnation, compared to technological advancements in other countries.
• Result: Labour narrowly won with a majority of four.

1966 Election

• Change in Conservative Leadership: Edward Heath, also from a grammar school, ran against Wilson.
• Wilson's Edge:
  • More charismatic and effective on television than Heath.
  • Increased Labour majority to 98.

Wilson's Political Ideology

• Reputation: Seen as a left-winger, allied with Aneurin Bevan.
• Reality: Displayed centrist tendencies, supported British nuclear weapons, attempted trade union reforms.
• Criticism: Accused of being an opportunist, prioritizing popularity and power.

Wilson's Governance Style

• Kitchen Cabinet:
  • Trusted a close circle of advisors, not politicians or civil servants.
  • This created insecurity and suspicion among senior politicians.
• Implications: Less effective governance due to limited access by cabinet members.

Economic Challenges and Policies

Initial Challenges

• Inherited economic problems: stagnation, balance of payments deficit, lack of long-term planning.
• Labour's commitment to technological advancement was not fully realized.

Economic Policies

1. Deflationary Policies:
   • Rejected initially to avoid 'stop-go' cycles and maintain welfare and technology spending.
2. Devaluation:
   • Initially avoided due to political embarrassment but later implemented.
   • Reduced the pound's value against the dollar.

Department of Economic Affairs (DEA)

• Established for long-term economic planning, led by George Brown.
• Faced internal conflicts with the Treasury and personal challenges with Brown.
• Ultimately failed and was abolished.

Prices and Incomes Policy

• Government efforts to control inflation through wage and price restraints.
• Led to union dissatisfaction and internal Labour Party conflicts.

Shift to Devaluation and Deflation

• External factors like the Middle East war in 1967 exacerbated economic issues.
• Devaluation and deflationary measures were eventually adopted, despite initial resistance.

Conclusion

• Wilson's government was marked by economic struggles and crises.
• Achievements in technology and modernization rhetoric were overshadowed by economic instability.
• Labour's credibility on economic management suffered towards the end of Wilson's term.