The parliamentary agreement between the Labour Party and the Liberal Party 1977- 1978 ‘The Lib-Lab Pact’ Jonathan Kirkup July 2012 A thesis submitted for the degree of PhD. Cardiff School of European Languages, Translation and Politics Cardiff University Summary of Thesis This thesis is a chronological case study into the origins, operation and consequences of the Lib-Lab Pact 1977-1978. Cross-party co-operation in British politics since 1945 is assessed. David Steel’s election as Liberal Party leader, his political philosophy and strategy are examined. Concepts of realignment, ‘co- operation strategy’ are explored. The parliamentary and political events together with a detailed assessment of the inter-party negotiations which led the Pact are examined. New perspectives include: the significance of the leader-led nature of the negotiation process; the Labour-Ulster Unionist understanding which ran concurrent with the Pact; the importance of Lib-Lab discussions on devolution which pre-dated the Pact in influencing Steel’s subsequent decision-making. Analysis focuses on the Lib-Lab negotiations into if the Direct Elections to the European Parliament Bill should include a proportional voting system and whether the parliamentary Labour party should be compelled to vote for PR. A key finding of the thesis is that rather than allowing a free vote, as was agreed, the Prime Minister, James Callaghan, was prepared to offer the Liberals a ‘pay roll’ vote; the significance of Michael Foot in this process is also noted. The structure of the Lib-Lab consultative mechanism is reviewed. Case studies include a review of on Liberal policy influence on the Budget 1977 and 1978. The nature of intra-party dissent is reviewed with the difference between Labour and the Liberal parties noted. An examination of the serious internecine conflict is complemented by a reassessment of the role of Christopher Mayhew in this process. The Lib-Lab Pact is reviewed, assessing its affect in influencing Callaghan’s decision not to call a General Election in 1978; its influence on Liberal/Liberal Democrat party strategy, and its importance in the subsequent formation of the triple-lock, as such the thesis highlighting the Pacts relevance to subsequent cross-party understandings. ii Declaration This work has not been submitted in substance for any other degree or award at this or any other university or place of learning, nor is being submitted concurrently in candidature for any degree or other award. Signed ………………………………………… (candidate) Date …20 JULY 2012 STATEMENT 1 This thesis is being submitted in partial fulfillment of the requirements for the degree of …PhD………………… Signed ………………………………………… (candidate) Date 20 JULY 2012 STATEMENT 2 This thesis is the result of my own independent work/investigation, except where otherwise stated. Other sources are acknowledged by explicit references. The views expressed are my own. Signed ………………………………………… (candidate) Date 20 JULY 2012 STATEMENT 3 I hereby give consent for my thesis, if accepted, to be available for photocopying and for inter-library loan, and for the title and summary to be made available to outside organisations. Signed ………………………………………… (candidate) Date 20 JULY 2012 STATEMENT 4: PREVIOUSLY APPROVED BAR ON ACCESS I hereby give consent for my thesis, if accepted, to be available for photocopying and for inter-library loans after expiry of a bar on access previously approved by the Academic Standards & Quality Committee. Signed ………………………………………… (candidate) Date 20 JULY 2012 Page | iv Contents Summary of Thesis .................................................................................................................................. ii Declaration ............................................................................................................................................. iii Contents .................................................................................................................................................. 1 Acknowledgments ................................................................................................................................... 5 About this thesis ..................................................................................................................................... 7 A review of the literature ...................................................................................................................... 12 Chapter One .................................................................................................................................... 20 Cross-party co-operation in British Politics 1945-1977 .................................................................... 20 Cross-party discussions 1964-74 and their influence on the Lib-Lab Agreement 1977-78 .............. 26 Wilson-Grimond discussions 1964-1965 .......................................................................................... 26 Heath-Thorpe discussions 1974 ........................................................................................................ 31 The Liberal leadership election of 1976 ............................................................................................ 36 Liberal party policy and strategy 1974-77 ........................................................................................ 40 Chapter Two.................................................................................................................................... 50 Build up to the Lib-Lab Pact: Parliament 1974-1977 ........................................................................ 50 The loss of the Labour government’s overall majority ..................................................................... 55 Loss of the Guillotine Motion on Devolution (Scotland and Wales) Bill, 22 February 1977 ............ 58 Cross-party discussion on devolution, February-March 1977 .......................................................... 61 Expenditure White Paper Debate, 17 March 1977 ........................................................................... 65 Chapter Three ................................................................................................................................ 71 Cross-party discussions, 17-20 March 1977 ..................................................................................... 71 Labour-Ulster Unionist discussions, 16-22 March 1977 ................................................................... 73 Negotiations with other parties ........................................................................................................ 81 Chapter Four ................................................................................................................................... 84 Page | 1 Overview ........................................................................................................................................... 84 Negotiations between the Labour Party and Liberal Party, March 1977 ......................................... 84 Cyril Smith’s approach to the Labour Party, March 1977 ................................................................. 85 Lib-Lab Negotiations, 19 March-20 March 1977 .............................................................................. 89 Consultation undertaken by Steel, 19-20 March 1977 ..................................................................... 92 Consultation undertaken by Callahan, 19-20 March 1977 ............................................................... 95 First meeting of the Lib-Lab negotiations, 21 March 1977 ............................................................... 97 Discussions between Michael Foot and John Pardoe, 21 March 1977 .......................................... 101 Liberal Party communiqué, 22 March 1977.................................................................................... 103 Second meeting of the Lib-Lab negotiations, 22 March 1977 ........................................................ 111 Third meeting of the Lib-Lab negotiations, 5pm, 22 March 1977 .................................................. 123 Fourth meeting of the Lib-Lab negotiations, 9.45pm 22 March 1977 ............................................ 124 Chapter Five .................................................................................................................................. 128 Labour Cabinet discussions on the Lib-Lab Agreement, 23 March 1977 ........................................ 128 The Joint Statement by the Prime Minister and the leader of the Liberal party ......................... 136 Confidence Motion, 23 March 1977 ............................................................................................... 137 Assessment of the Lib-Lab Agreement: Could Steel have secured more than a ‘free vote’? ........ 139 Chapter Six ..................................................................................................................................... 146 The Lib-Lab Consultative Mechanism ............................................................................................. 146 Origins of consultative mechanisms of the Lib-Lab Pact ................................................................ 146 Formation of the Consultative Mechanism .................................................................................... 150 The structure of the Consultative mechanism ................................................................................ 151 Implementation