1. EDWARD HEATH Factors resulting in his downfall.

2. The Barber Budget 1971. Big tax cuts. Income tax cut by 2.5 % Cuts in government spending. Cuts to council house subsidies. An end to free school milk. Added to inflation. Excess borrowing. Rise in house prices. Council house rents rise

3. Industrial relations. 1971 Industrial Relations Act. All unions invited to register. Set up an industrial relations court. Enforced ballots. Cooling off period before a strike could begin. TUC advised the Unions not to register. So most unions did not register. Employers didn’t force the unions within their companies to register because they wanted to avoid trouble.

4. Reducing the role of government. Abandon incomes policies. No wage freezes, no government interference in pay settlements. Let market forces decided free bargaining between employers and workers. Inflation 15% by end of 1971. 1972 Heath returns to a policy of prices and incomes control. Nationalises Rolls Royce. £34million subsidy to the Upper Clyde Shipbuilders.

5. Unions. January 1972 miners strike turning down a Coal Board offer of an 8% pay rise. Miners were also unhappy about pit closures. Pickets force Saltley coke depot to close meaning fuel could not be transported to power stations.

6. Unions. Coal stocks at power stations were running down. Power cuts occurred. Heath gave in and the miners got wage rises of more than twice the rate of inflation. Encouraged other workers to ask for bigger wage rises. Inflation rises even higher.

7. Yom Kippur War. October 1973 Shortage of oil supplies. Oil prices rise sharply. Coal becomes a more important to Britain. November 1973 miners begin an overtime ban. January 1974, to ration electricity, a three day week is introduced.

8. Who governs Britain? February 1974 full scale miners strike. February 1974 Edward Heath calls a general election

10. 1974 Election Result. Conservative. 297 seats. Labour. 301 seats. Liberal. 14 seats. N.Irish parties. 12 seats. SNP. 7 seats. Plaid Cymru. 2 seats. Others. 2 seats.

11. 1974 Election.