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The Labour Government, the Treasury and the £6 pay policy of July 1975

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Rogers, Chris (Christopher James). (2010) The Labour Government, the Treasury and the £6 pay policy of July 1975. British Politics, Vol.5 (No.2). pp. 224-236. ISSN 1746-918X

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Official URL: http://dx.doi.org/10.1057/bp.2009.29

Abstract

The 1974-79 Labour Government was elected in a climate of opinion that was fiercely opposed to government intervention in the wage determination process, and was committed to the principles of free collective bargaining in its manifestoes. However, by December 1974 the Treasury was advocating a formal incomes policy, and by July 1975 the government had introduced a £6 flat rate pay norm. With reference to archival sources, the paper demonstrates that TUC and Labour Party opposition to incomes policy was reconciled with the Treasury's advocacy by limiting the Bank of England‟s intervention in the foreign exchange market when sterling came under pressure. This both helped to achieve the Treasury's objective of improving the competitiveness of British industry, and acted as a catalyst for the introduction of incomes policy because the slide could be attributed to a lack of market confidence in British counter-inflation policy.

Item Type:

Journal Article

Subjects:

D History General and Old World > DA Great Britain
H Social Sciences > HC Economic History and Conditions

Divisions:

Faculty of Social Sciences > Politics and International Studies

Library of Congress Subject Headings (LCSH):

Great Britain -- Politics and government -- 1964-1979, Great Britain -- Economic policy -- 1964-1979, Wage-price policy -- Great Britain -- History -- 20th century, Foreign exchange -- Great Britain -- History -- 20th century

Journal or Publication Title:

British Politics

Publisher:

Palgrave Macmillan Ltd.

ISSN:

1746-918X

Official Date:

June 2010

Dates:

Date	Event
June 2010	Published

Volume:

Vol.5

Number:

No.2

Page Range:

pp. 224-236

Identification Number:

10.1057/bp.2009.29

Status:

Peer Reviewed

Publication Status:

Published

Access rights to Published version:

Restricted or Subscription Access

References:

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