The IMF Crisis of 1976 - Professor Vernon Bogdanor

Professor Bogdanor explains how a loan ended the post-war consensus and drove the Labour Party from Government until the 90s: In 1976, the Labour government sought a loan from the International Monetary Fund to meet deteriorating economic conditions. The Fund demanded large cuts in public spending. After a bitter Cabinet battle, the Cabinet agreed, so ending plans to expand the economy and improve the social services. Many believed that 1976 was also a crisis for democratic socialism, a philosophy which had sought social improvement through economic growth. That philosophy now appeared irrelevant during a period of austerity. The transcript and downloadable versions of the lecture are available from the Gresham College website: