1. CONSERVATIVE ECONOMIC POLICIES

2. Task
In groups you must reproduce the diagram on Conservative economic policies
You must all produce a diagram
Only one person is allowed to look at the diagram at one time and feedback to the rest of the group
You will only have a limited amount of time

3. 1955: But Butler cuts income tax and purchase tax as there is a election coming
Import controls-£50 limit on travel allowances
Bank rate raised
1955: Pots and pans budget on kitchen utensils
1953: Income tax and purchase tax cut
1951-Balance of payments and huge defence commitments
1955: boom and too many imports
Increase in exports to USA
R. A. Butler ( )
1962-National Economic Development Councils created (NEDDY)
Macmillan
Economic Policies
Selwyn Lloyd
Demanded halt to increasing government spending
Composed of 6 trade unionists, 6 industrialists, 2 independents and 3 Cabinet ministers
Wages rise faster than productivity
Thorneycroft
Heathcoat-Amory
Wanted to bring down inflation-incomes had risen by 75%
1961-purchase tax raised and bank rate raised to 7%
1959-economic recovery results in giveaway budget
Thorneycroft resigns when Macmillan opposes this
Pay Pause introduced
Income tax cut in an election winning budget

4. Chancellor Policies Butler: 1951-55 Macmillan: 55-57 n/a
Balance of payments crisis and huge defence commitments led to raising of the bank rate and import controls (£50 limit on currency that could be taken out of the country). Exports to the USA led to an improved situation-in 1953 income tax and purchase tax were cut. A boom and too many exports should have led to stop policies but instead cuts were made to purchase and income tax as there was a general election. This led to a pots and pans budget were taxes were introduced on kitchen utensils.
Macmillan: 55-57
n/a
Thorneycroft:
Incomes had risen by 75%. Thorneycroft wanted to cut back on government spending to prevent inflation but resigned when Macmillan opposed this as he did not want more unemployment (which cuts would produce).
Heathcoat Amory:
An improvement in the economic situation in 1959 led to a ‘giveaway budget’. Income tax was cut for example.
Selwyn Lloyd:
In 1961 income and purchase tax were increased. A pay pause was also introduced. This was because wages were rising faster than productivity. In 1962 National Economic Development Councils (NEDDYS) were introduced (they were largely useless).