1. Reasons for Consensus Progressive Conservatives:
Eden was a One-Nation Tory
Macmillan wrote The Middle Way in 1938 in which he showed sympathy for radical solutions
Butler was the driving force behind the 1944 Butler Act
Wilson and Callaghan (both Labour) were dependent on trade union support

2. Reasons for the end of consensus
By the 1970s Keynesianism wasn't working
Conservatives wanted free-market policies
Some Conservatives felt that the unions had too much power
Heath tried to break it
Neither party had much to offer so the Liberals grew in support in the 60s and 70s (under Jeremy Thorpe) but failed to recover fully due to the First Past the Post system
Winter of Discontent (1978-9)
The most votes in a constituency wins. Therefore a PM can be elected with the fewest votes but most seats

3. Eden ( )
Took over when Churchill retired then called an election
One-Nation Tory
Wanted Britain to be taken seriously in foreign affairs
Very low unemployment
Fell due to Suez crisis
Agreed to invade but was forced to pull out when America threatened to sell their Pound reserves (which would cause inflation)
Resigned

4. Macmillan (1957-63) Replaced Eden when he resigned Popular government
Mixed economy
Low unemployment
Waged and living standards very close
Wrote The Middle Way in 1938 in which he showed sympathy for radical solutions
Stagflation
1959 important Conservative members resigned (including Powell) as they felt the government was spending too much
1962 Night of the Long Knives
Spy scandals
Resigned due to ill health

5. Douglas-Home (1963-64) Took over when Macmillan resigned
Many people did not like his image – very upper class

6. Wilson ( , )
Won in 1964 as his party was classless. Used TV. Promised welfare and to increase military presence abroad
Made improvements to education
Department of Economic Affairs (1964) under George Brown. Brown came up with a National Plan but it lacked government resources or good relations with the treasury
1966 National Seamen’s Strike
Devalued the pound 1967 – unpopular (opposed by Callaghan)
Was refused entry to the European Economic Community
1969 Barbara Castle proposed curbing union power but was never passed as it worried Wilson (even though he initially agreed)

7. Heath (1970-74) Won due to problems in with Wilson’s government:
Rising unemployment
Union unrest
Also won due to new manifesto
Tax cuts
Wages should not be set by the government
Remove the state from peoples’ lives
Organisation of Petroleum Exporting Countries raised oil prices by 70%. The cost of energy rose
The Industrial Relations Act failed to reduce union power as unions were not forced to sign up the National Industrial Relations Court
1970s wages failed to keep up with prices
1971 National Union of Miners strike
Pay Board created to examine pay deals and a Price Commission to limit price increases for some companies
1973 strike: teachers, hospital staff, train drivers, Ford workers and gasmen
1974 NUM strike
Fell due to:
The failure of the ‘Barber budget’ (tax cuts)
Selsdon Group – Conservatives who wanted a free-market policy
Forced to call a state of emergency due to NUM strike
Failure of ‘Who runs Britain?’ campaign
‘Who runs Britain?’ – unions or government

8. Wilson ( , )
1974 election was a hung parliament (no majority)
Repealed the Industrial Relations Board
Returned to corporatism
Formed the Social Contract
From 1976 was forced to cap spending and wages due to inflation (fuel prices)
Growth of unemployment in the 60s and by 1976 unemployment was at 1.5 million
The party was split
Resigned in 1976

9. Callaghan (1976-79) Took over from Wilson when he resigned in 1976
Started to abandon consensus
Clashed with Tony Benn
Divisions within the party
1978 Ford car strike
1979 Public Sector and haulage strikes

10. Consumer spending increased which meant the economy struggled
Unemployment 2%
Rise in living standards
Decline of British empire
Economy grew slower than in other countries
1960s
1963 Unemployment 878, 000
Exports became less competitive
Stagflation
IMF loans
1970s
Inflation
Unemployment 6%
Consumer spending increased which meant the economy struggled

11. Economic Policies Problems Solutions Success or failure Inflation
Unemployment
Welfare
Deficit – too much spending on defence
Devaluation of the pound, tax, interest rates, stop-go
NEDDY, NICKY
IMF loans
Stop-go policies meant businesses were reluctant to invest- slow economy
1957 Rent Act increased rents for low­income earners + hit them hard