The affluent society (1951–1964)
- Conservative dominance: Churchill, Eden, Macmillan and Douglas-Home won in 1951, 1955 and 1959. Reasons: rising living standards, Labour splits, and keeping popular welfare policies ("Butskellism": both parties similar).
- Economy: full employment, end of rationing (1954), but "stop-go" cycles and slower growth than rivals.
- Society: consumer goods, TV, cars, new towns; migration from the Caribbean and South Asia; teenagers and new youth culture.
- Foreign relations: the Suez Crisis (1956) humiliated Britain; decolonisation sped up ("wind of change", 1960); a close "special relationship" with the USA; France blocked Britain's EEC bid (1963).
The Sixties and Wilson's Labour (1964–1970)
- Wilson promised a modern Britain forged in the "white heat" of technology. Economic troubles led to devaluation of the pound (1967) and conflict with unions ("In Place of Strife", 1969).
- Liberal reforms: end of the death penalty (1965), legal abortion and decriminalising homosexuality (1967), easier divorce (1969), the Race Relations Acts, and the Open University.
- Culture: pop music, fashion, television and student protest; growing debate about immigration.
- USA: Wilson supported the USA in words but kept British troops out of Vietnam, and withdrew forces from "East of Suez".
The end of the post-war consensus (1970–1979)
- Heath (1970–74): took Britain into the EEC (1 January 1973); clashed with the miners; the oil shock and the three-day week (1974) brought him down.
- Wilson and Callaghan (1974–79): inflation near 25% (1975); the 1975 referendum confirmed EEC membership (67% yes); an IMF loan (1976) forced spending cuts; the "Winter of Discontent" (1978–79) strikes.
- Society: the Troubles in Northern Ireland; women's equal pay and sex discrimination laws (1970, 1975); punk and growing tension over race.
- Many people now felt the consensus had failed, which opened the way for Thatcher.
Thatcherism, Major and New Labour (1979–2007)
- Thatcher (1979–90): monetarism to beat inflation, privatisation (BT, British Gas), laws to weaken unions, council-house sales ("Right to Buy"). Unemployment passed 3 million; the miners' strike (1984–85) was defeated; riots in some cities.
- Foreign affairs: Falklands War (1982), close ties with Reagan, tough stance on the USSR, doubts about Europe.
- Fall and legacy: the poll tax and splits over Europe led to her resignation (1990). Her market ideas became the new normal.
- Labour realigns: Kinnock expelled the far left and dropped unpopular policies; Blair rewrote Clause IV (1995) to accept the market.
- Major (1990–97): Maastricht Treaty, Black Wednesday (1992), Gulf War (1991), early peace steps in Northern Ireland.
- New Labour (1997–2007): Bank of England independence, minimum wage, devolution to Scotland and Wales, the Good Friday Agreement (1998), more spending on schools and the NHS; the Kosovo intervention and the Iraq War (2003).
- Conservatives after 1997 lost three elections in a row and changed leaders often.
Try it: track the consensus
In free play, write down the beam's tilt and the two bars for 1959, 1975, 1984 and 2000. Which year looks most like a crisis? Which looks like a new balance? Use your four notes to answer: "Was 1979 a turning point?"
Key formulas and definitions
- Post-war consensus: both main parties accept the welfare state, NHS, mixed economy and full employment
- Butskellism: the similar economic policies of Butler (Conservative) and Gaitskell (Labour)
- Stop-go: cycles of boosting then cooling the economy
- Devaluation: lowering the value of the pound against other currencies
- Winter of Discontent: mass public-sector strikes, winter 1978–79
- Thatcherism: free markets, privatisation, weaker unions, low inflation, a strong state on law and order
- New Labour: Labour's 1990s rebrand accepting markets but investing in public services
- Devolution: passing some powers from Westminster to Scotland, Wales and Northern Ireland
Worked examples
1. Why did the Conservatives win three elections in a row in the 1950s?
1) Living standards rose and rationing ended. 2) They kept the popular NHS and welfare state, so voters had little to fear. 3) Labour was split between left and right.
2. Why is the 1970s called the end of the post-war consensus?
Step 1: The old tools (spending, deals with unions) could not stop high inflation and unemployment together. Step 2: Strikes brought down Heath (1974) and Callaghan (1979). Step 3: Even Labour had to cut spending after the IMF loan. Result: many voters and politicians wanted a new approach, which Thatcher offered.
3. Give one way New Labour continued Thatcherism and one way it was different.
Continued: it kept privatisations and most union laws, and gave the Bank of England control of interest rates. Different: it brought in a minimum wage, devolution and much higher spending on the NHS and schools.
Common mistakes
- Thinking only Labour supported the welfare state in the 1950s. The Conservatives kept it too; that is why it is called a consensus.
- Dating EEC entry to 1975. Britain joined in 1973; the 1975 vote was a referendum to stay.
- Saying Thatcher ended the NHS. She reformed it but kept it publicly funded.
- Assuming New Labour reversed Thatcher's policies. It kept most of them and added new social spending.