A2 History Unit 3M
The Making of Modern Britain, 1951-2007
Modern Britain 1951-64 – Politics & Economy
Conservative Dominance, 1951-57
Reorganisation of the party following the shock defeat in 1945 was important to this.
Labour infighting between Bevanites and Gaitskellites.
1951 marked the end of austerity and the start of the post-war boom.
The Conservatives recognised public approval of the Attlee legacy:
o NHS was already seen as iconic.
o Welfare state could not be rejected, nor a total reversal of nationalisations.
The new government accepted the existence of the post-war consensus.
Age of Affluence
Conservative government was lucky in its timing – came to power just as economic
recovery was beginning.
Economic indicators pointed upwards from 1952.
Weekly wages were going up – (£8.30 in 1951 to £15.35 in 1961).
Boom in car ownership.
Home ownership increased thanks to cheap mortgages – Harold Macmillan built
300,000 houses as promised as housing minister.
Food rationing ended completely in 1954.
Surge in ownership of consumer goods such as TVs, fridges, new furniture.
Butler gave £134 million tax-cuts in the run-up to the 1955 election.
The 1955 Election
Churchill had retired after turning 80.
Eden called a general election immediately, for his own mandate.
National press was overwhelmingly in favour of the Conservatives.
Voters were happy with rising living standards.
Eden won with a majority of 70 – although Labour’s vote still held up fairly well.
Attlee retired and was replaced by Gaitskell
Eden to Macmillan
, High hopes for Eden – foreign policy specialist with progressive ideas.
Ruined by Suez Crisis, October 1956.
Eden was seen as weak – came under attack from Labour and sections of the press.
He had lied to the House of Commons – his prestige was badly tarnished.
Suez split the Conservative party – a rebellion from nearly 40 Conservative MPs.
Pressure from the US exposed British financial weakness – led to a run on the pound.
Eden resigned on grounds of ill health in early 1957.
Conservatives recovered with remarkable speed under Macmillan because:
o Party unity was restored with no lasting splits.
o Economic prosperity continued to gain approval with the voters.
o Labour party under Gaitskell was internally divided.
o Anthony Eden disappeared and the crisis seemingly went with him.
Conservative Government under Macmillan, 1957-63
Post-war economic boom was continuing.
Labour party remained divided.
He seemed to have the media in the palm of his hand.
He & his senior cabinet (Butler, MacLeod & Boyle) were in tune with public opinion.
In October 1959, Macmillan called a general election – bigger majority of 100 seats.
However, in 1957 and 1958, the government faced serious economic problems.
Summer of 1957 – major financial crisis.
Inflation was rising because wages were well ahead of productivity.
Run on the pound – danger of devaluation against the dollar.
Divisions in the cabinet between Thorneycroft (the Chancellor) and MacLeod.
Britain in the grip of stop-go economics.
When Thorneycroft proposed drastic spending cuts, Macmillan overruled him.
Thorneycroft resigned – the post-war consensus had won.
This crisis did not do lasting harm to Macmillan.
The pound regained its value against the dollar.
The economy expanded greatly – resulted in tax cuts of £370 million in April 1959.
The Labour Party and its Internal Divisions, 1957-63
Labour had 14 million votes in 1951 – more than any other election including 1997.
However, deep internal problems intensified during the 1950s.
Key figures after Attlee retired in 1955 – Bevan and Gaitskell
Gaitskell was always associated with the right wing of Labour Party – the left were
suspicious of him.
Disagreements between Bevanites and Gaitskellites became common after 1951.
, After 1959 election defeat, splits widened.
CND (Campaign for Nuclear Disarmament) pressed for unilateral disarmament.
Many Labour left-wingers joined in with CND protests.
Also faced opposition from trade unions over nuclear weapons.
Labour missed chance to modernise by getting rid of a clause that committed the
party to nationalisation.
Gaitskell faced clear opposition from the left, so he backed down.
Labour political position slowly improved in the 1960s.
Gaitskell died in 1963 – replaced by Harold Wilson – electoral prospects were better.
The Problems of Economic Modernisation, 1960-63
Age of Affluence did not come to an end in the early 60s.
By late 1950s, Europe’s economic growth, especially West Germany, was leaving
Britain behind.
Trade with the Empire and the Commonwealth was not enough to keep up.
In 1959, Britain took the lead in forming EFTA, but it could not match the EEC.
In 1961, Britain applied to join the EEC - this was a symbol of the failure of economic
modernisation in Britain.
Economy and living standards were still growing but stop-go economics continued.
Economic growth often led to over-heating economy.
Britain continued to fall behind West Germany, Japan and the USA.
In 1961, worries about over-heating economy led government to introduce a “pay-
pause” to stop wage inflation, and to ask the IMF for a loan.
1962 problems saw more stop-go economics and balance of payments problem.
NEDC (National Economic Development Council) was set up in 1962 for better
cooperation between government employers and unions.
The Night of the Long Knives reshuffle in 1962 – balance of payments worsened.
Rejected application to join EEC in 1963 – there was no longer a wave of prosperity.
Political Problems and the fall of Macmillan, 1962-63
Night of the Long Knives made Macmillan look clumsy and out-of-touch.
Profumo Affair reinforced this.
Serious illness forced Macmillan to resign in 1963 – he had not prepared the way for
anyone to succeed him.
Strong opposition to the two most obvious candidates – Lord Hailsham and Rab
Butler – Sir Alec Douglas-Home emerged as a compromise candidate.
The whole business made the Conservatives seem out-of-touch – contrasted with
Harold Wilson promising to take Britain into the ‘white heat of the technological
revolution.’
, General Election of 1964
Labour won by just 3 seats.
Factors against Conservatives:
o A run of scandals and events in 1962-63
o Power vacuum following resignation of Macmillan
o Growing sense of impatience with the old ‘Establishment’ and a desire for
generational change
o Wilson was a strong campaigner, confident with the media
o Split between Gaitskellites and Bevanites was over – both were dead
o Labour could exploit the public mood that it was ‘time for change’
Liberal Revival – only 9 seats won but 1964 election saw the Liberal vote almost
double – they took votes from the Conservatives and tipped the balance.
Historical Debate
“We have slithered from one crisis to another…The simple truth is that we have been
spending beyond our means.” – Peter Thorneycroft, Chancellor – 1958
Modern Britain 1951-64 – Society
Demographic Change, 1951-64
