249. Who governs Britain?

249. Who governs Britain?

How did Heath end up calling an election on the question of who governed the country? Especially as the choice he seemed to be offering was between him and the minders.

This episode traces the impact of two major shocks, the ending of Bretton Woods in 1971 and the oil shock of 1973, combined with the inflation that followed a last Tory attempt to manufacture a boom from Keynesian economics, that drove Heath to that decision. It also shows how all this led to the unravelling of the postwar consensus, particularly on economic policy, and the emergence of a new, radical current in the Conservative Party seeking to replace the consensus by a new departure in economic thinking.

When Heath, having lost the February 1974 election, lost the next one, in October, too, the pressure against him became irresistible. He called a leadership election for early 1975. The self-destruction of the campaign of the initial darling of the right, Sir Keith Joseph, opened the door to the first possible ascent to leadership of a major British party by a woman. The brilliant election tactics of Airey Neave, ex-intelligence operative, ensured that she achieved it.


Illustration: A Tory leader and his successor: Ted Heath and Margaret Thatcher. Photo from the Guardian, PA Archive/Press Association

Music: Bach Partita #2c by J Bu licensed under an Attribution-NonCommercial-No Derivatives (aka Music Sharing) 3.0 International License

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258. Major’s bastards and Labour’s deal

258. Major’s bastards and Labour’s deal

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257. Iron Lady out, Grey Man in

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256. Maggie losing it

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255. Maggie: lioness or poodle?

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Maggie Thatcher in 1987 pulled off a trick that had eluded all other British Prime Ministers of the twentieth century: she won three general elections in a row. Even more, she won a second Commons lan...

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254. Maggie reaching the top

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Thatcher’s victories, including a general election landslide and breaking the miners’ strike, emboldened her to launch another phase in the reduction of the role of the state in the British economy. N...

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253. The Enemy Within

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252. Iron Lady

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Mrs Thatcher’s first term in office was one of the great get out of jail events. She came into office intent on braking with the Keynesianism and social democracy of the postwar consensus. She drew on...

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251. Unlucky Jim

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