- Much worse than conservatives led on - £400 million balance of payments deficit.
- Economic growth in the UK was much lower than Japan and other European countries.
Prices and Incomes Policy
- Government intervention to set limits on prices rises and wage restraint.
- Caused tensions with the trade unions.
Department of Economic Affairs
- Drive for economic expansion.
- Overlapped with the Treasury.
- Civil servants found it difficult to know which boss they should be listening to.
George Brown
- Was the head of the Department of Economic Affairs.
- Impulsive and lacked consistency.
- Had a drink problem.
- Was virtually in competition with Callaghan (the Chancellor).
- But was actually an able politician.
Devaluation
- Reduced the exchanage of sterling from $2.80 to $2.40.
- Damaged Labour's credibility.
- It was theatrical - Wilson told people that the pound was not worth any less when it was.
- It was basically an economic failure.
Trade Union relationship
- Prices and Incomes policy angered the trade unions.
- Strikes began, causing more tensions between government and unions.
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