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2S The Making of Modern Britain, 1951–2007

Devaluation and Labour's Economic Policy, 1965-1969

  • 3 things to know
  • Component 2

Overview

Recall questions on why the National Plan failed, Wilson's resistance to devaluation, the new rate and the 'pound in your pocket' broadcast of 1967, and the Prices and Incomes Board, Selective Employment Tax and Industrial Reorganisation Corporation.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Key term

Why did the National Plan of 1965 fail?

Key term

What was the purpose of the Prices and Incomes Board established in 1965?

Key term

Why was the Industrial Reorganisation Corporation created in 1966?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    Why did the National Plan of 1965 fail?

    Model answer

    The July 1966 deflationary measures introduced to defend sterling prioritised the exchange rate over growth, undermining the plan

  2. 2

    Why did Wilson resist devaluing sterling from 1964 to 1967?

    Model answer

    He associated devaluation with Labour's 1949 devaluation and feared it would damage the party's economic credibility

  3. 3

    On what date was sterling devalued, and by how much?

    Model answer

    18 November 1967, from $2.80 to $2.40, a reduction of approximately 14%

  4. 4

    What was the new exchange rate for sterling after the 1967 devaluation?

    Model answer

    $2.40 (down from $2.80)

  5. 5

    What claim did Wilson make in his broadcast about devaluation, and why did it damage his credibility?

    Model answer

    He claimed devaluation did not affect 'the pound in your pocket', which ignored the impact on import prices

  6. 6

    What was the purpose of the Prices and Incomes Board established in 1965?

    Model answer

    To monitor wage increases and prices as part of voluntary incomes policy

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Every question in 2S The Making of Modern Britain, 1951–2007, on a schedule.

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