Age 77 years when
he became prime
minister in 1951, he
was also a well know
war time hero
Prime Minister
RA Butler
Chancellor of Exchequer
Butskellism
Conservative Economic Policy
Balance of Employment and
economic growth, expanding welfare
state, keeping Britain heavily
investing in Military defence (Korean
War), and develop a Nuclear weapons
programme
Continuation of Labour aims
Butler (right) and Gaistkell (left)
£700 million defict
tax cuts
£3 million credit
1951 Election
Labour had 13, 900, 000
votes 250 seats,
Conservatives had 13, 700,
00, but 350 seats meaning
that they had a majority
Situation 1951
Rationing had ended
Steel denationalised
Tories Manifesto/
Build 300,00 homes
a year
Queen Elizabeth II became Queen
Atomic Bomb detonated 1952
1955-57
1955 Election
Conservative 13, 200,
000 votes, 350 seats,
Labour vote decreased
12, 000, 000, Seats 250 +, less people votes
Leadership
Eden
1956
Suaz Crisis
Increased
1957-63
Leadership
Harold MacMillan
Background
A skilled leader
and a exceptional
service record
People have more access
to televisions, increase
access to media, so
Harold works the media
Labelled Supermac to show
the rise of the economy
Replaced Eden
Situation
Prosperity increased
Commercialism
increased e.g
televisions, cars.
Conservative Economic Policy
Economically "sluggish"
Aim to have a mixed economy and to
stick to Keysnian politics
Stop go and stage flation
When consumption and prices rose
to quickly, the government put a
break by increasing taxes and raising
interest rates, making it diffucult to
borrow money
When production and exports
decline, the government would
accelerate the economy, by cutting
taxes and lowering interest rates, thus
making it easier to borrow money
(Stagnation and inflation) Industry decline
put inflation is still rampant with the result
of the economy is it is suffering
Britain Industrial Growth Rate
GDP Growth Rates
Britain 2.3, Germany 5.1
Britains spending on defences was £11.3 billion
NEVER HAD IT SO GOOD
1957
Wages
Wages had increased from £8.30 a week to
£18 in 1964
Inflation climbed but never got ahead
of peoples wages (real wages)
Credit
Access to credit made people more able to buy
more commercial goods
e.g private cars increased from £1.5 million to £5.5 million
Housing
Aim to beat Atlees 600,00 homes
Aim to build 300,000 homes annually
He achieved this aim, as housing minister in 1951
Rent act
1957
Had abolished the rent control
six million
properties were put
on the market
But the down side was rent could not be
controlled and tenants at the lower end
could no lower the high rates of rents
Unemployment
Unemployment in 1957 rose from 300,000 to
800,000 in 1963