Callaghan Ministry
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Labour Government 1974–1979
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. Then 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 Margaret Thatcher in 1979.
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.
It was generally recognised that this had no long-term stability, and the October 1974 general election was held, the Wilson government gaining a majority of three seats.
The economy was in recession by the time of the first election, but economic growth was re-established by the end of 1975, 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.
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