The situation by 1976 On 16 March 1976

The situation by 1976 • On 16 March 1976, Wilson announced his resignation as Prime Minister • Various rumours circulated as to why he resigned. • His doctor had detected problems which would later be diagnosed as colon cancer, and Wilson had begun drinking brandy during the day to cope with stress. • Some claimed that during this period, he had developed early on-set Alzheimer’s • James Callaghan defeated Michael Foot to succeed Wilson as leader and Prime Minister. • Callaghan was seen as a ‘safe pair of hands’ with good links with the trade union movement.

Domestic problems facing Callaghan’s • government Inflation was at 24%, the BOP was in crisis. • By 1977, Labour had no majority in parliament. • Power sharing in Northern Ireland had collapsed. • Growing nationalist movements in Scotland Wales.

Solution 1: Borrow • money! In 1976, Dennis Healey announced he would negotiate a £ 3 Billion loan from the IMF. • The aim was to help lower inflation, and prop up the value of the pound. • The terms of the loan required the government ot make massive cuts in public spending. • This outraged the left-wingers like Benn and Foot, as well as the unions. • In October 1976, Healey had to delay a flight to Manilla to meet the IMF to attend the Labour Party Conference. • A number of delegates jeered him when he appealed to them to show realism and accept that cuts in public expenditure were necessary in the country’s interests.

Solution 2: Lib-Lab Pact • In 1977, Callaghan made a pact with the Liberal Party (12 MPs) • In return for their support in the House, Labour would promise to hold referendums on devolution for Scotland Wales. • This allowed the government to survive a vote of no confidence tabled by Thatcher’s Conservative Party in 1977. • Margaret Thatcher, leader of the Conservative Party said the vote "showed clearly that this government is more concerned to cling to office than it is to seek the verdict of the people. "They have concluded a shadowy deal with the Liberal MPs based on one single identity of interest - the common dread of facing a general election, "

Solution 3: Deal with the unions • In July 1977, Healey announced a wage cap at 5%. This was rejected by the TUC. • In 1978 after a 9 -week strike, Ford lorry drivers achieved a 17% pay increase. • In December 1978, the ASLEF (lorry and train drivers) went on strike for a 40% pay increase. • With 80% of all goods being transported by road, supplies began to run out. • The Army were put on stand-by to start driving haulage. • On 29 January, lorry drivers accepted a deal of a rise of up to 20%

(Reporter for Evening Standard): “What is your general approach in the view of the mounting chaos in the country at the moment? ” Callaghan: “Well, that's a judgment that you are making. I promise you that if you look at it from outside, and perhaps you're taking rather a parochial view at the moment, I don't think that other people in the world would share the view that there is mounting chaos. ” January 1979 th 10

The Winter of Discontent • Ambulance drivers across the UK went on strike in mid. January (some refused to attend 999 calls) The Army had to provide a basic ambulance service. • Only 1, 1000 of 2, 3000 NHS hospitals were offering treatment. • Newspapers reported stories of cancer patients being untreated. • Gravediggers also went on strike – in Liverpool bodies went unburied. 2 weeks later they attained 14%. • Waste collectors went on strike – rubbish began to build up on streets. • Leicester Square became a make-shift dump. • This became known as the ‘Winter of Discontent’

Solution 4: Remove ‘Special Category • In 1976, Callaghan appointed Roy Mason as Status’ Secretary of State for Northern Ireland. • He removed ‘special category status’ for all paramilitaries in HM Prison Maze. • IRA prisoners refused to wear prison uniforms (blanket protests) • By 1978, dirty protests began • Over 250 IRA prisoners protested against poor treatment by smearing their excrement on the walls.

Match up the issue with the solution. In the third column, write down what it consequences it had! Problem Solution Rising inflation and a BOP The ‘Lib-Lab’ Pact of 1977 crisis No majority in parliament ‘Special Category Status’ removed in 1976 The Troubles of Northern Devolution Acts passed in Ireland 1978 Nationalist movements in Pay cap of 5% introduced Scotland Wales 1977 Powerful trade union IMF loan of 1976 movement Key words to use: • Vote of no confidence • Dirty protests • Blanket protests • Left-wing • Betrayal • Winter of Discontent