In 1959, the Labour Party had been defeated for the third consecutive time, despite its shiny new “moderate” image. This setback prompted the Party’s right wing under Gaitskell to move even further to the right. They immediately began to challenge the whole class basis of the party by proposing to drop nationalisation, change the Party’s name, and break the links with the trade unions. They believed the Labour Party had become too identified with “class” interests, and needed to follow the example of the German Social Democratic Party, which a few years earlier had jettisoned its “out-dated Marxist baggage”. Since the Tories won elections, went the new reasoning, Labour would have to become more like the Tories to win. These arguments sound very familiar forty years later. There is clearly nothing “new” in New Labour or Blairism. But Gaitskell did not succeed in his aim, and although Blair has gone much further in his “counter-revolution”, he will not succeed either in his project to abolish the Labour Party.
Gaitskell’s attack created a storm of opposition within the local Labour Parties, which, in turn, forced the parliamentary lefts to raise some protests. The attempt to scrap Clause Four was thwarted by a revolt of the rank and file, and the other proposals were temporarily shelved for a more opportune time. It took another thirty years before such plans were seriously raised again in the Party.
In 1960, a bitter unofficial strike by Merchant Navy crews broke out over Victorian working conditions, lack of basic rights, low pay, and dissatisfaction with their right-wing union leaders. The unofficial National Seamen’s Reform Movement attempted to maintain the stoppage but it eventually fizzled out. The action nevertheless signalled significant changes in the National Union of Seamen, which had long been a company union, and laid the basis for a further successful official strike in 1966.
Despite this so-called “wild cat” disruption, the national trade union leaders were determined to maintain their collaboration with the Tory government. In 1962, in spite of growing disenchantment over a nine-month pay “pause” imposed by the Tories, the General Council accepted an invitation from the Chancellor to join the new National Economic Development Council, to co-operate in the long-term development of the British economy. At the 1963 TUC Congress, George Woodcock proudly proclaimed that the TUC had moved from Trafalgar Square to the government’s committee rooms. But while they were sweet-talking the TUC leaders in “committee rooms” and embroiling them within government structures, the Tories unleashed attacks upon those working in the nationalised industries, particularly in coal and rail. In January 1963 Dr Richard Beeching (later Lord) was made chairman of the new British Rail and given the task of financially breaking even over the following five years. Consequently, the Beeching axe butchered a fifth of the national rail network, some 3,600 miles of track were closed, including stations, yards and depots, resulting in widespread job losses. But the right-wing leaders of the NUR put up little resistance to this “restructuring”.
Within twelve months, the Profumo scandal had plunged the Tory government into a deep crisis, resulting in MacMillan being replaced by Sir Alec Douglas Home as Prime Minister. The death of Gaitskell also saw a leadership contest within the Labour Party, resulting in the election of former Bevanite, Harold Wilson, as Party leader. A general election in October 1964 witnessed the defeat of the Tories after 13 years of continuous rule and the coming to power once again of a majority Labour government. Wilson promised a new vision that would harness “the white heat of the scientific and technological revolution” and develop an economic National Plan that would transform Britain. Once again, the working class looked with hope to the political front to solve its problems.