British Economic and Social Planning 1959-1970
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British economic and social planning 1959-1970 Glen O'Hara Thesis submitted in fulfilment of the criteria for the degree of Doctor of Philosophy University College London University February 2002 UNIV. Gouverner, c 'est choisir. -ducdeLevin, 1812 ABSTRACT This thesis attempts to trace the history of the politics, rhetoric and practice of British central government planning in the 1960s. As such, it attempts to answer a number of questions: why did 'planning' come back into fashion in the early 1960s? What meanings did it take on for those who espoused it? Did different groups have very different ideas about what it meant? Why was it adopted as such an all-encompassing reformist banner in this decade? Did it fail to achieve its ends, and if so, why? 'Planning' is therefore treated both as an idea and a practice in its own right, but also as a tool to answer wider questions about post-war British government and politics. How important were interest groups, for instance the 'social partners' of employers and trade unions, in the management of the economy? How central were provider and consumer interest groups in the planning and development of the Welfare State? How close together were the ideas and actions of the political parties? How powerfiui was the central government, and what were the limits to its power? This thesis will use unpublished manuscript sources from the archives of the central government and the two main political parties, along with some personal papers, to attempt to answer these questions. It will conclude that planning failed because of a basic lack of agreement between the different 'planners', as well as the inability of the central government machinery to conduct such complex and testing work. It will also argue that the influence of political ideology and party-political conflict was much greater than has previously been thought. TABLE OF CONTENTS Index of charts III Index of tables iv Recurrent abbreviations and conventions V Acknowledgements vi A. Introduction I. Planning and the state in the British 1960s 'The resources of democratic planning': hoping for a breakthrough 'Contribution to civilisation': a pre-history of planning 3 'Specialised knowledge': economists and the new mood 9 'Bread and circuses': political ideas and historical challenges 15 'The age of organisation': corporatism and the planned society 20 'Possibilities for action': towards a history of planning 25 B. Economics H. Conservative economic planning, 1959-64 Searching for solutions: the political economy of growth and planning 27 'Psychological value': a planning council for the nation? 39 'Ambitious figure': a plan for industry? 49 'As simple as it is difficult': a plan for public expenditure 53 'Proper national balance': returning to regionalism 72 The impossible legacy 87 Ill. Labour's economic plan, 1964-70 The 'true alternative'? Economic management in crisis, 1964-70 89 'Pretty worthless': the National Plan and after 98 'A more discriminating approach': towards selective intervention 117 'Hostage to fortune': Labour and public expenditure 126 'Restiveness and dissatisfaction': Labour's pians for the regions 144 C. Welfare 1V. Education 'Savage reductions': the paradox of expansion, 1964-70 162 CLASP and after: local authority models of efficiency 165 'Moral crime': the pressure of numbers and public opinion 168 'Complete and irrevocable denial': the collapse of tripartism 175 'Half our future': the school leaving age, Further Education and training 181 'Other people's children': Labour and education spending 1964-70 189 'Pros and cons': a planning machinery for education 197 'Melting pot': Further Education and Polytechnics, 1964-70 201 'Making choices': Labour and selectivity 204 'Empty toughness'? Labour comprehensive plans 208 V. Housing 'If we had more houses': the Conservative U-turn, 1959-64 213 'Largely out of control': the housing programme, 1959-64 222 'All over expansion': a return to planned development? 226 'Endless vista': encouraging the private sector 231 'Improved methods': the turn to efficiency, 1963/64 234 'The idea of a common purpose': Labour's housing plan, 1964-70 238 Radical measures: cheap mortgages, land reforms and rent control 242 The balance of building, 1964-70 248 'Repairs and conversions': a new liberal agenda, 1968-70 257 VI. Health 'True level of need': the Conservative reorientation of the NHS 264 'Laboratory of new estates': General Practice and health centres, 1951-64 266 'Body blow': charging for the NHS 270 'Provocation of Nemesis': the hospital plan, 1962-64 275 'People who need care': local authority health and welfare plans, 1962-64 282 Labour's NHS: expenditure and provision, 1964-70 289 'The greatest return': Labour's priorities 295 'Direct breach': Labour, charges and pay beds 301 'Evil spirits': scandal and reaction 305 'Chain of command': a new structure for the NHS 312 D. Conclusion VII. Conclusion: government, choice and history 318 E. Bibliography 324 Ii INDEX OF CHARTS Note: all figures are on a Great Britain basis unless otherwise stated. 1.1. Total economic growth in six developed economies, 1951-64 13 11.1-2. Unemployment, inflation, growth and balance of payments, UK, 1959-64 31 11.3-4. Public sector expenditure and employment, UK, 1891-1971 54 11.5. Government expenditure, UK, 1955-64 64 11.6. Regional unemployment, 1959-64 (000s) 77 11.7. Unemployment rate in Development Areas! Districts and GB average, 1959-64 81 ifi. 1-2. Unemployment, inflation, growth and balance of payments, UK, 1964-70 93 ffl.3. Government expenditure by sector, UK, 1964-70 132 111.4. Percentage rises! falls in total government expenditure, UK, 1964-70 142 111.5. Public sector deficit! surplus, UK, 1964-70 142 111.6. Unemployment in three regions against GB average, 1964-70 159 ffl.7. Unemployment in Development Areas against GB average, 1966-70 160 W.1-2. Education spending, UK, 1920-74 164 IV.3. LEA consortia, school building, England and Wales, 1959-70 167 P/.4. 1960 projection of pupils and out-turn, England and Wales, 1959-74 171 IV.5-6. FE provision, England and Wales, Scotland, 195 1-70 188 IV.7-8. Pupil-teacher ratios and teacher training provision, 1951-74 193 IV.9. Current spending per University student, 1959-70 195 V.1-2. House prices and wages, 1956-70 218 V.3. Public and private sector housing starts, 1959-64 223 V.4. Industrial building, share in public sector completions, 1951-79 236 V.5-6. Interest rates and public/ private sector house starts, 1964-70 252 V.7. Central government subsidies for local authority housing, 1959-70 253 V1.1. NHS funding, UK, 1951-64 265 VL2. NHS sources of finance, UK, 1951-64 270 VI.3, VI.4. NHS spending, 195 1-70 291 VL5. Hospital capital expenditure, 1964-70 299 VI.6. NHS contributions and charges, UK, 1964-70 303 'U INDEX OF TABLES Note: all figures are on a Great Britain basis unless otherwise stated. 11.1. Macro-economic management, UK, 1959-64 32 11.2. Selected social services, implications of population projections for 1981 59 11.3. Government expenditure as a percentage of GDP, UK, 1951-64 64 11.4. Government cost increases above general GDP cost increases, UK, 1955-64 70 11.5. Refusal of Industrial Development Certificate applications, 1951-64 73 11.6. Local Employment Act expenditure, 1960/61-1963/64 79 ifi. 1. Macroeconomic management, UK, 1964-70 94 ffl.2. National Plan annual % growth targets and actual outcome, 1964-70 110 ffl.3. Public sector civil and defence R&D expenditure, 1964-70 120 ffl.4. Government expenditure as a percentage of GDP, UK, 1964-70 132 ffl.5. Government cost increases above general GDP cost increases, 1964-70 134 ffl.6. Refusal of Industrial Development Certificate applications, 1964-70 157 ffl.7. Investment grants under the 1966 Industrial Development Act 158 ffl.8. LEA and derelict land reclamation payments, 1965-70 159 ffl.9. Government advance factory building, 1964-70 159 IV.1. The School Building Survey, England and Wales, 1963 173 IV.2. Secondary Modern schools, characteristics, England and Wales, 1963 174 IV.3. Comprehensive secondary schools, England and Wales, 1955-64 180 IV.4. Government FE capital spending, 1959-64 184 P1.5. National Plan spending increases and reality, 1964-70 190 [V.6. FIE numbers, 1970/71: Robbins and reality 194 IV.7. Polytechnic subject areas, numbers/ per cent, 1970-78 202 P/.8. EPA spending, major conurbations, England and Wales, 1968-70 206 [V.9. Comprehensive schools and their pupils, 1966/67-74/75 212 V.1. Mortgage tax relief and option subsidy, 1968-1979 243 V.2. National Plan building targets and reality, 1964/65-1969/70 256 V.3. Local authority tenders for high flats in relation to other dwellings, 1960-70 258 V.4. Local authority multi-storey flat tenders, 1945-1979 258 VI.!. GP Practices and Group Practice Loans, England and Wales, 1959-64 268 VL2. GP Practices and Group Practice Loans, Scotland, 1959-64 268 VI.3. Hospital capital spending, 1951/52-1963/64 277 VI.4. Mental illness, resident population of NHS hospitals, 195 1-64 284 VI.5. Selected LHA capital expenditure, England and Wales, 1959-64 286 VI.5. Selected LHA current expenditure, England and Wales, 1950/51 - 1963/64 287 287 VI.7 LHA total expenditure, selected categories, Scotland, 1959/60-1963/64. VL8. LHA health and welfare, England and Wales, 1967: projection and reality 287 VI.9. National Plan spending increases and reality, 1964/65-69/70 290 VI.10. Group practice loans and GPFC expenditure, 1964-70 293 294 VI. 11. Health centre spending, 1964-70 VI.12. Selected LHA services, England and Wales, projections