James Callaghan 1976

Labour Government
4 March 1974 - 4 May 1979

Following Harold Wilson's surprise resignation in 1976, James Callaghan won leadership of the Labour Party and became Prime Minister. Continued economic difficulties, high public spending and market pressures resulted in the government accepting a loan from the International Monetary Fund (under conditions enforcing government spending controls). Pressures on public sector wages caused a wave of strikes, culminating in the 1978-1979 'winter of discontent'. Throughout his premiership Callaghan ran a minority government, reliant on the support of smaller Westminster parties. Callaghan's government lost a vote of no confidence in 1979.