Political and economic problems

Conservative Supremacy 1951-64

Economic prosperity played a big role in consolidating Conservative power during this period, mainly due to their successful management of the economy.
Rationing ended in 1954 which marked the end of the austerity period and brought relief to many households.
Stop-Go economics: frequent switches between economic expansion and contraction led to investment uncertainties and hindered long-term planning. Despite this, public and private sectors still saw significant overall growth.
Dealing with trade unions was a constant issue. The Conservative party generally maintained a policy of compromise, aiming to avoid labour disputes and to maintain higher wages.
The Suez Crisis in 1956 led to a sharp critique of the Conservative leadership and a dent in Britain’s international reputation.

The Labour government faced a severe balance of payments crisis shortly after coming to power, which led to the controversial decision to apply for a loan from the International Monetary Fund.
The decision to devalue the pound in 1967, due to economic instability, was politically damaging for the Labour government.
Industrial unrest was higher under Labour, with a significant number of working days lost to industrial actions.
The Labour government pursued a modernizing agenda, but its efforts to reform the economy were hampered by financial constraints and lack of time.

The first years of the Conservative return marked a period of economic stagnation and high inflation, leading to discontent and industrial disputes.
The Oil Crisis of 1973, triggered by an oil embargo by OAPEC countries, caused a severe increase in oil prices and further economic instability.
The Three-Day Week, introduced in 1974 to conserve electricity during a miners’ strike, was a drastic measure that highlighted the severity of the crisis.
A policy of fiscal restraint, including cuts in public expenditure and a freeze on pay increase, led to industrial action against the government.
The Winter of Discontent in 1978-79, characterized by widespread strikes in the public sector, was a key factor contributing to the electoral defeat of the Labour government in 1979.