End of Consensus and Labour’s 1970 Defeat (AQA A-Level History): Revision Notes
End of Consensus and Labour's 1970 Defeat
The end of post-war consensus
The period 1964-70 did not witness the complete collapse of post-war consensus politics, but clear signs emerged that politicians and economists were beginning to question how Britain should be governed. Britain's economy was being run ineffectively when measured against stiff international competition.
Britain's relative economic decline
Britain had experienced reasonable prosperity in the post-war period, but when compared with major overseas rivals - France, Germany, Japan and the USA - Britain was noticeably lagging. This relative decline prompted both the left and right to question whether the consensus model remained appropriate.
Economically, Britain was slipping, which encouraged the left to demand more state control whilst simultaneously prompting some on the right to advocate alternative approaches. This dual pressure from both political wings signalled the beginning of the end for consensus politics.
Wilson government's state-led responses
The Wilson government's approach centred on expanding state involvement in the economy. Two institutional developments illustrated this strategy:
Department of Economic Affairs (DEA): Established under George Brown, the DEA represented one response to Britain's economic problems. The creation of this new department reflected a belief that enhanced state planning could reverse decline.
The DEA was created as an alternative centre of economic policy-making, intended to provide long-term planning in contrast to the Treasury's focus on short-term management. This represented a significant institutional innovation in British government.
Ministry of Technology (MinTech): Anthony (Tony) Benn assumed leadership of this new ministry in 1966, replacing Frank Cousins. Wilson's 1964 election promise to usher in modernity through the "white heat of technology" was given institutional form through MinTech. Benn controlled extensive resources intended to reshape modern Britain. High-tech industries would receive support from MinTech, the ministry became well-known, and government backing would help businesses develop cutting-edge technology, thereby fulfilling Wilson's election commitment.
The Leyland-BMC Merger Failure
In practice, MinTech's achievements fell short of expectations. The government encouraged mergers, though the merger of Leyland Motors with the British Motor Corporation in 1968 proved a notable failure.
The outcome demonstrated the limitations of state-led industrial policy:
- The new company mounted no effective challenge to international motor manufacturers
- It ultimately collapsed in 1986
- This marked the end of British-owned mass car production
This failure illustrated that government intervention alone could not reverse industrial decline without addressing deeper structural problems.
Breakdown of consensus approaches
The breakdown of post-war consensus did not occur fully during the Wilson years, but recognition that new methods needed testing resulted in increased state 'planning' through the DEA and MinTech. The failure of both initiatives prompted different approaches by later governments.
Meanwhile, on the right, early signs of free-market thinking appeared from figures such as Enoch Powell and Nicholas Ridley, though at this stage they remained a tiny minority within Conservative ranks. These voices would become increasingly influential in the following decade.
Loss of the 1970 election
Wilson's election timing dilemma
Wilson faced a choice: should he call an election in October or June? June offered less chance of trade figures deteriorating, whilst October gave Wilson and the Labour Party more time to build their position. He selected June and was rewarded with favourable weather - blue skies and brilliant sunshine. This was also a World Cup year, with England amongst the favourites to win: seemingly the perfect moment for a general election.
The economy appeared healthy, with trade figures positive. What could possibly go wrong?
Multiple factors behind the unexpected defeat
Wilson's complacency: Wilson appeared extremely pleased with his performance against Heath in debates at the Despatch Box and on television. He felt comfortable with his position as Labour Party leader and satisfied with the trade figures. This sense of security bred complacency. After trailing Heath in the polls for months, Labour began their election campaign ahead and remained ahead until polling day.
A Critical Mistake: Overconfidence
Wilson's complacency proved fatal to Labour's chances. Despite leading in the polls throughout the campaign, he failed to recognize the vulnerability of his position. Confidence turned into overconfidence, and Labour's team dismissed warning signs as insignificant.
Wilson's presidential-style campaign: Wilson conducted an American Presidential-style campaign, positioning himself as the centre of attention. Cheering crowds accompanied him on walkabouts, where he rarely discussed policy. Heath, conversely, managed to appear aloof on film, though in their final television broadcast he came across more effectively. Labour dismissed this improvement as too little, too late - they remained confident of victory.
Trade figures released days before polling: Trade figures released shortly before the election revealed a deficit. Heath seized this opportunity to emphasise his household budget policy. He had consistently maintained that devaluation had not improved families' living standards, and he persisted with this message regardless of who was listening. In the end, his analysis proved correct.
Heath's Vindication
Heath's persistent focus on household budgets and the impact of devaluation, often dismissed during the campaign, was ultimately vindicated by the late-released trade figures. His consistency in messaging, even when it seemed to fall on deaf ears, paid off at the crucial moment.
Willie Whitelaw's preparation: Heath's chief whip, Willie Whitelaw, was already preparing for Heath's successor, expecting defeat. Heath and Wilson both retired to await results. As soon as the first result arrived from Guildford, showing a 5% swing to the Conservatives, Wilson understood he had lost.
Liberal reforming legislation
Private Members' Bills
Ironically, the Labour government's most enduring legacy consisted of liberal reforms: ending capital punishment, divorce reform, legalisation of abortion and homosexual relations. None of these measures were formally introduced by the government itself - they were all Private Members' Bills: legislation introduced by individual MPs rather than by the government.
The Irony of Labour's Legacy
Wilson's government is remembered less for its economic policies and more for groundbreaking social reforms - yet these reforms were not technically government legislation. By allowing parliamentary time for Private Members' Bills on controversial social issues, Wilson enabled progressive change while keeping these matters separate from party politics.
The end of capital punishment
Several issues existed that Wilson wanted allocated parliamentary time but considered best kept separate from party politics. Capital punishment abolition was one such matter. The path to abolition was not especially straightforward, though the actual process demonstrated how controversial social reforms could be achieved through the Private Members' Bill mechanism.
Key Points to Remember:
- Post-war consensus began showing strain during 1964-70, with Britain's economy lagging behind France, Germany, Japan and the USA
- Wilson's government attempted state-led solutions through the DEA and Ministry of Technology, but both achieved limited success
- The Leyland-BMC merger exemplified the failure of government-directed industrial policy
- Labour lost the 1970 election primarily due to Wilson's complacency, poorly-timed trade figures showing a deficit, and Heath's persistent focus on household budgets
- Wilson chose June over October for the election, expecting favourable conditions, but was caught out by late-released economic data
- Labour's most lasting legacy from this period was liberal social reforms (capital punishment, divorce, abortion, homosexuality) - all introduced as Private Members' Bills rather than government legislation
- Early signs of free-market thinking from Powell and Ridley foreshadowed the end of consensus politics