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Economic Strategy and the Labour Party: Politics and policy-making, 1970–83 PDF

304 Pages·1996·15.894 MB·English
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ECONOMIC STRATEGYAND THE LABOURPARTY Economic Strategy and the Labour Party Politics and policy-making, 1970-83 Mark Wickham-Jones LecturerinPolitics University 0/Bristol FirstpublishedinGreat Britain1996by MACMILLANPRESSLTD Houndmills,Basingstoke,HampshireRG216XS andLondon Companiesandrepresentatives throughouttheworld Acataloguereeordforthis bookisavailable from theBritishLibrary. ISBN978-0-333-69372-8 ISBN978-0-230-37367-9 (eBook) DOI10.1057/9780230373679 FirstpublishedintheUnitedStatesofAmeriea1996by ST. MARTIN'SPRESS, INC., SeholarlyandRefereneeDivision, 175FifthAvenue, New York,N.Y. 10010 ISBN978-0-312-16405-8 Library ofCongressCataloging-in-PublicationData Wickham-Jones,Mark, 1962- Econornic strategyandtheLabourParty :politics andpolicy -making,1970-831MarkWickham-Jones. p. cm. Includesbibliographiealreferencesandindex. ISBN978-0-312-16405-8(cloth) I. Great Britain-Economicpolicy-1945- 2.LabourParty(Great Britain) I.Title. HC256.6.w49 1996 338.941-<1c20 96-26643 CIP ©MarkWickham-Jones 1996 Allrightsreserved.Noreproduction,copyortransmissionof thispublicationmaybemadewithoutwrittenpermission. Noparagraphofthispublicationmaybereproduced,copied or transmittedsavewithwritten permissionorinaccordancewith theprovisionsoftheCopyright,Designs andPatents Act1988, orunderthetermsofanyIicencepermittingIimitedcopying issuedbytheCopyrightLicensingAgency,90TottenhamCourt Road, London WIP9HE. Anyperson whodoesanyunauthorisedactinrelation tothis publicationmaybeliabletocriminalprosecutionandcivil claimsfordamages. 10987654321 05 04 03 02 01 00 99 98 97 96 Contents List of Tables and Figures vi Acknowledgements vii Abbreviations viii Introduction: Economic Strategy and the Labour Party 1 1. The Nature of Sodal Democracy and the Labour Party 12 2. The Revisionist Ascendancy 34 3. Labours Alternative Economic Strategy 53 4. The Policy Debate Within Labour 85 5. The Adoption of the Alternative Economic Strategy 116 6. Labour in Office, 1974-79 137 7. Politics and Policy-Making in the Labour Party after 1979 158 8. ConcIusions 183 Epilogue: The Development of Labour's 210 Economic Strategy since 1983 References 224 Index 272 v List of Tables and Figures Table 1.1 Perspectives on social democracy 15 Table 3.1 Comparing Revisionism and the AES 81 Figure 5.1 Policy-making in the Labour Party 1970-74 121 Figure 7.1 Labour Party policy-making 1979-83 168 vi Acknowledgements I have accrued many debts during the research for this book which it is a pleasure to acknowledge. Michael Artis and Martin Burch patientlyprovided extremely useful comments on many drafts of the thesis on which it is based. Patrick Seyd and David Howell examined the thesis and proposed many important improvements. I have also benefited from suggestions from Lewis Minkin andJohn Schwarzmantel. My colleague Vernon Hewitt commented perceptively on a draft. Desmond King tirelessly gave excellent general advice and offered acute and detailed revisions on numerous occasions. I am very grateful to all of them for their help and the many amendments they suggested. Responsibility, ofcourse, is mine. I would like to thank all those who gave up their time so that I could discuss Labour's economic policy-making with them. Tony Benn and Ruth Winstone have been especially helpful in providing access to a variety of Labour party documents and papers induding Benn's unabridged diary. I am grateful to them for their assistance and for permis- sion to quote from Benn's unpublished diary. I am also grateful to Stephen Bird and Andrew Flynn of the National Museum of Labour History, to Alan Haworth, secretary of the Parliamentary Labour Party, and to the staff and librar- ians ofthe British Library ofPolitical and Economic Science, the Labour Party library and the TUC library. For their help and encouragemem I would like to thank Charles Wickham- Jones and Prim Wickham:Jones. I owe an immense debt to Julie Tarling. Her support and encouragement contributed towards this volume in a man- ner that words cannot fully express. Mark Wickham:Jones December 1995 Vll Abbreviations ACAS Advisory Conciliation and Arbitration Service ADP Agreed Development Plan AES Alternative Economic Strategy APEX Association of Professional, Exeeutive, Clerical and Computer Staff ASTMS Association of Scientific, Teehnical and Managerial Staff AUEW Amalgamated Union of Engineering Workers AUEW-TASS Amalgamated Union of Engineering Workers Teehnical and Supervisory Seetion CAC Conference Arrangements Committee CBI Confederation of British Industry CEPG Cambridge Economie Poliey Group CLP Constimency Labour Party CLV Campaign for Labour Victory CLPD Campaign for Labour Party Demoeracy CSE Conferenee of Socialist Eeonomists EEC European Eeonomic Community EETPU Electrieal, Eleetronie, Teleeommunications and Plumbing Union FEASC Finance and Eeonomic Affairs Sub- Committee GMWU General and Municipal Workers Union HPC Home Poliey Committee ILP Independent Labour Publications IMF International Monetary Fund IPSC Industrial Poliey Sub-Committee IRC Industrial Reorganisation Corporation IRI Italian Institute for Industrial Reconstruction IWC Institute for Workers' Control KME Kirkby Manufaeturing and Engineering Company LC TUC-Labour Party Liaison Committee viii Abbreviations ix LCC Labour Coordinating Committee LPACR LabourParty Annual Conference Report NALGO National and Local Governments Officers' Association NEA National Economic Assessment NEB National Enterprise Board NEC National Executive Committee NEDC National Economic Development Council NUBE National Union of Banking Employees NUPE National Union of Public Employees NUR National Union of Railwaymen PC Parliamentary Committee (Shadow Cabinet) PCC Policy Coordinating Committee PIDSC Planning and Industrial Democracy Sub- Committee PLP Parliamentary Labour Party PO Public Ownership PSG Public Sector Group RD Research Departrnent papers' dassification, 1970-74,1979-83 RE Research Department papers' classification, 1974-79 RES Research Department papers' c1assification, 1974 SDP Social Democratic Party SWP Sector Working Party TGWU Transport and General Workers Union TUC Trades Union Congress USDAW Union ofShop, Distributive andAlliedWorkers WPBI Working Party on Banking and Insurance

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