ABSTRACT

Harold Wilson’s Labour Party came to power with a small overall majority in October 1964. It was faced with an economy that was booming. Joe Fowler, the Secretary to the US Treasury, told Wilson that he had no faith in the voluntary incomes policy, and urged the British Prime Minister to impose a statutory policy, preferably a ‘freeze’. James Callaghan, the Chancellor of the Exchequer, concurred and Wilson himself saw the need for a tougher policy. Under the procedure of notification and vetting for wages all unions affiliated to the Trades Union Congress (TUC) were expected to inform the General Council of impending claims. These were then discussed by a special ‘Incomes Policy Commission’ which had a month to make any comments and to call for talks with the claimants. The TUC backed the policy by 5.2 million to 3.3 million votes after a strong speech in favour by George Woodcock.