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Edward Heath's government (June 1970–March 1974) represents one of the most dramatic reversals in post-war British political history. Heath came to power promising to break with the post-war consensus — to reduce state intervention, curb trade union power, and modernise the economy through competition. By 1972, he had executed a spectacular "U-turn," returning to interventionism, incomes policies, and the very approaches he had denounced. His government ended in defeat by the National Union of Mineworkers and electoral humiliation.
In January 1970, the shadow Cabinet met at the Selsdon Park Hotel in Croydon and produced a programme that Wilson mockingly dubbed "Selsdon Man" — a reference to the prehistoric Piltdown Man, implying that Heath's free-market ideas were Neanderthal. The Selsdon agenda included:
| Policy | Detail |
|---|---|
| Reduced state intervention | No more "lame duck" subsidies to failing industries |
| Trade union reform | Legislation to regulate strikes and union behaviour |
| Tax cuts | Reducing the burden of direct taxation |
| Law and order | Tougher approach to crime and industrial disorder |
| Competition | Abolishing the Prices and Incomes Board, ending interventionist industrial policy |
The centrepiece of Heath's trade union policy was the Industrial Relations Act 1971:
| Provision | Detail |
|---|---|
| Registration | Unions were required to register with a new Registrar of Trade Unions and Employers' Associations |
| National Industrial Relations Court | A new court with the power to grant injunctions against strikes, award compensation, and impose cooling-off periods |
| Unfair industrial practices | Defined various forms of industrial action as "unfair" and subject to legal penalties |
| Closed shop | Restricted (but did not abolish) the closed shop — the practice of making union membership a condition of employment |
The Act was a comprehensive failure. The TUC instructed unions not to register, making the Act unenforceable. Key confrontations included:
The most dramatic moment of Heath's premiership was the reversal of the "lame duck" policy:
| Event | Detail |
|---|---|
| Rolls-Royce | Nationalised in February 1971 after bankruptcy threatened — an early breach of the "no lame ducks" principle |
| Upper Clyde Shipbuilders | Workers staged a "work-in" (led by Communist shop stewards Jimmy Reid and Jimmy Airlie) in June 1971. The government provided £35 million in public funds to save the yards — a humiliating retreat |
| Industry Act 1972 | Gave the government sweeping powers to intervene in industry through subsidies and grants — the opposite of the Selsdon programme |
| Incomes policy | In November 1972, Heath introduced a statutory prices and incomes policy — exactly the approach he had promised to abandon |
Historiographical Debate: John Campbell (Edward Heath, 1993) argues that the U-turn reflected Heath's fundamental pragmatism — he was never the free-market ideologue his rhetoric suggested, and he reversed course because the alternative (mass unemployment in politically sensitive regions) was unacceptable. Margaret Thatcher, by contrast, later used Heath's U-turn as a cautionary tale — the lady was "not for turning." Denis Healey captured the view from the left: "He decided to run the economy my way — but not very well."
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