Modern Britain 1951 - 1964

Conservative Dominance and Problems from 1951 - 1964

Government Policies

• Internal battles within the Labour Party ensured Conservative dominance in government.
  • The Labour Party was divided into two.
  • Bevanites (who supported Aneurin Bevan) and Gaitskellites (who supported Hugh Gaitskell).
  • They mainly disagreed on unilateral disarmament and prescription charges.
• 1951 saw the end of austerity.
• Unemployment was relatively low at 367,000 in 1951.
• There was no desire amongst the Conservative Party to dismantle the Post-War consensus.
  • The Post-War Consensus promised to administrate Keynesian economics (pump-priming the economy), a mixed economy (nationalisation of major industries as well as pivatisation), establishment of the National Health Service and the promise of a welfare state in Britain.
• The NHS was loved by the public.
• Welfare state could not be rejected nor could the nationalisation of major industries.
• From 1951 - 1964, over 8% of the national budget was spent on defence.
• Britain successfully tested its first atomic bomb in 1952.

Affluence

• The Conservative Party domiance occured at a time of prosperity.
• Britain was still taking money from the USA in the form of Marshall Aid.
• Weekly wages were £8.30 in 1951 and rose to £15.35 in 1961.
• Car ownership increased (3 to 7 million).
• Home ownership increased.
  • Mortgages were cheap.
  • 300,000 new houses a year were promised under Churchill.
  • These houses were mainly for purchase rather than public sector housing.
• Food rationing officially ended in 1954.
• Ownership of household appliances increased.
  • Affluence meant people could afford to buy vacuum cleaners, washing machines, cookers and refrigerators.
  • The number of television sets increased from 340,000 in 1951 to 13 million by 1963.
• ITV was launched in 1955 and paid for by advertising.
  • A symbol of prosperity.
• Rab Butler issued £134 million in tax cuts in the run-up to the 1955 General Election.

The 1955 General Election

• Churchill had retired at 80 and Anthony Eden became his successor.
• Eden wanted a mandate and therefore called an election.
• The media overwhelmingly supported a Conservative government.
• The voting population liked the rise in living standards.
• Eden won a majority of 70.
  • Labour did not win that many seats but the results were not abysmal.
• Clement Atlee retired and was replaced by Hugh Gaitskell.

The transition from Eden to Macmillan

• Anthony Eden specialised in foreign policy
  • He had been Secretary of State for War in Churchill's first government.
• From 1955 there was an independant nuclear deterrence.
• Britain rejected the chance to join the EEC in 1955.
• His reputation was forever tarnished by the Suez Crisis which took place in October 1956.
• Eden was viewed as weak and was attacked by Labour and the Press.
• He lied about the full extent of Suez in the House of Commons.
• The Suez Crisis caused divisions in the Conservative Party.
  • There was a rebellion against Eden from nearly 40 MPs.
  • The crisis showed the 'Establishment' to be untrustworthy.
• The US pressure on Britain and Britain's financial dependance on the US led to a run on the pound.
  • A run on the pound occurs when…