Callaghan Ministry

The Labour Party, led by Harold Wilson and then James Callaghan as Prime Minister of the United Kingdom, governed the United Kingdom of Great Britain and Northern Ireland from 1974 until 1979. The end of Callaghan’s ministry was marked by the Winter of Discontent, a period of serious industrial discontent. This was followed by the election of Conservative Margaret Thatcher in 1979. See First Wilson ministry for the 1964–70 period.

Historian Kenneth Morgan states:

After the February 1974 general election, no party had a majority of seats. The incumbent Conservative party won the popular vote, but Labour took the most seats. Edward Heath, the Conservative prime minister, attempted to negotiate a coalition with the Liberal party, but resigned as prime minister after failing in this regard. The Labour Party, led by Harold Wilson, then established a minority government, which took office on 4 March 1974.

It was generally recognised that this had no long-term stability, and that another general election was likely within a few months. Wilson called another general election for 10 October, and won by a majority of three seats.

The economy was in recession by the time of the first election, but economic growth was re-established by 1976, although inflation which had run into double digits before Labour came to power was now above 20%. It would remain high for the rest of this government, rarely falling below 10%. Unemployment was now well in excess of 1 million, whereas it had been less than 600,000 at the start of the decade. This was the result of the economic decline, as well as advancing engineering techniques which required fewer personnel, along with other factors including the closure of uneconomic factories and coalmines.

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