The Rest Is History - 664. Britain in the 70s: Scandal in Downing Street (Part 3)

Episode Date: April 26, 2026

With Britain heading towards financial meltdown and paranoia in the air, could its exhausted Prime Minister, Harold Wilson survive? Why were bombs going off in London every few days in the winter of 1975? And, with inflation reaching unprecedented heights, would the government finally act? Join Tom and Dominic as they discuss one of the greatest crisis points in modern British history. _______ Join The Rest Is History Club: Unlock the full experience of the show – with exclusive bonus episodes, ad-free listening, early access to every series and live show tickets, a members-only newsletter, discounted books from the show, and access to our private Discord chatroom. Sign up directly at the⁠restishistory.com⁠ To read our new newsletter, sign up at: therestishistory.com/newsletters Advertise with us: [e-mail] _______ Twitter: @TheRestHistory @holland_tom @dcsandbrook Video Editors: Jack Meek, Harry Swan + Adam Thornton Social Producer: Harry Balden Producers: Tabby Syrett & Aaliyah Akude  Senior Producer: Callum Hill Executive Producer: Dom Johnson Learn more about your ad choices. Visit podcastchoices.com/adchoices

Great news. The federal EV rebate is back. Eligible customers get up to $5,000 with the federal EVAP rebate on select 2027 volt and 2026 Equinox EV models. Visit your local Chevrolet dealer today for more details. Oh, I'd love to enter politics. I will one day. I'd adore to be Prime Minister. And yes, I believe very strongly in fascism. The only way we can see. speed up the sort of liberalism that's hanging foul in the air at the moment, is to speed up the progress of a right wing, totally dictatorial tyranny, and get it over as fast as possible. People have always responded with greater efficiency under a regimental leadership. A liberal wastes time saying,

well now, what ideas have you got? Show them what to do for God's sake. If you don't, nothing will get done. I can't stand people, just hang. about. Television is the most successful fascist, needless to say. Rock stars are fascists too. Adolf Hitler was one of the first rock stars. Look at some of his films and see how he moved. I think he was quite as good as Jagger. It's astounding. And boy, when he hit that stage, he worked an audience. Good God! He was no politician. He was a media artist himself. So that was the rock star David Bowie interviewed in Playboy in September 1976. And the big question, what's going on there?

Did he really mean it? Was he playing a part, perhaps, as he loved to do in the 1970s, the decade of Ziggy Stardust and Aladdin's sane? And of course, the part he's playing here is the thin white Duke, who Bowie described as a very Aryan fascist type. Or was he just completely off his head on Coke and speed? So many questions, Dominic. But whatever the explanation, the thing is that he was saying quite a lot of things like that in 1975 and 1976.

So here he is being interviewed by the NME in October 1975, where he said, What Britain needs is an extreme right front to come up and sweep everything off its feet and tidy everything up. He said the coming of the far right would do something positive at least to cause a commotion in people. and they'll either accept dictatorship or get rid of it. In April 1976, he was telling a press conference that Britain could benefit from a fascist leader. And then in May 1976, so the following month, came the most notorious incident of all when he turned up at Victoria Station in, I think, an open-top Mercedes and greeted fans with what was alleged at the time to be a Nazi salute and which Bowie, Elon Musk style, subsequently said had just been a wave. And then a few weeks later, he gives it the interview that I've just cited.

So you can fall down a massive rabbit hole in the internet, looking into all this, because Bowie fans will often say he was just waving, and he's been very hard done by the press photographers. On the other hand, as you say, there are a lot of such incidents in 1975 and 1976, and it's quite an odd part to choose to play. However, it's a very suggestive part, because this is a period in British history, the mid-1970s, when there's an awful lot of talk about Britain as the new Weimar Germany, about the ravages of inflation, about the rise

of political extremism, the decay of the centre, and about the possibility, even the probability that Britain will slide into some sort of authoritarianism. And the thing is, Dominic, isn't it, that the genius of Bowie is that he is superb at his chameleon-esque qualities, at finding character. who do reflect the zeitgeist. You absolutely, right? He does reflect the zeitgeist. And I think a little bit like

the Fulte Towers rant that you did last week, it's a nice window into the sort of nightmares of the British imagination in the mid-70s. I mean, the thing about Hitler being better than Jagger. Yes, sort of bonkers. All right, so last week we talked about the revolution on the right when Margaret Thatcher became leader of the Tory Party. We talked about the inertia and the shabbiness

of the Harold Wilson government and the popular vote to stay in Europe in Britain's first. referendum. And all of this, of course, was against this very bleak backdrop, which obviously informs David Bowie's persona. This is Britain heading towards what looks like a financial meltdown, so very dependent on massive borrowing. The government is handing out all these huge pay deals, 30% here, 31% there, to the trade unions. The Wilson government seems utterly becalmed and inflation is heading through the roof. And actually, before we get back into the politics

of it, let's just dwell on the culture for a second. So Tom, I know you're writing about the beetles at the moment, aren't you? So, swinging London and the, the, the, the, the, the zany, madcap mood of the 1960s is very much nutty fun. It's very much on your mind. But in the 1970s, so 10 years on, right, we're 10 years on from the first articles and the international press that were celebrating swinging London, you know, Carnaby Street and mini, mini skirts, dolly birds, the sun is shining, all this. It's now 1975, the most popular musical act. This is a sign of how music has evolved since those innocent days is the Bay City Rollers. And among the number one singles of the year are bangers by the likes of Tully Savalas.

Cojack. Billy Connolly. Amusing Scottish comedian. Windsor Davis. Played a sergeant major in a now cancelled BBC sitcom about the British in India. I mean, it's insane that he had a number one single. And a great friend of yours, actually, Rod Stewart. So you celebrated Rod Stewart's birthday last year with him, didn't you?

But I'm not going to go into any more details about that. Yeah, that's a story for a bonus episode. Now, among the younger generation of musicians who are coming through, the mood is very, very dark. So this is the bassist and co-vocalist of the stranglers, Jean-Jacques Bernel, who actually had a history degree. Bernel was interviewed in 1975, and he said, everyone is paranoid, there's decay everywhere. We've always lived with the assumption that things were getting better and better,

progress all the time. And suddenly it's like you hear every day there's a crisis, financial crisis, things being laid off, people not working. Everything is coming to a grinding halt. No more heroes, Dominic. No more heroes, exactly. This is the environment that gives rise to punk, which is beginning to stir in 1975. So we ended last time with the referendum, which was in June. A few weeks later, in August, probably the 23rd, a teenage dropout, very skinny and emaciated with this kind of shock of spiky dyed green hair, goes to a pub on the Kings Road in Chelsea to audition for a new band

that's been founded by a local boutique owner and the boy's name is John Leiden and the band's name is the sex pistols. So that was the 23rd of August. Five days later on the 28th of August, this is a good window, I think, into the sort of the flavor of the time. A bomb goes off outside selfridges

on Oxford streets and it injures seven people. The day after that, the 29th, another bomb goes off on Kensington Church Street, and it killed the bomb disposal officer who'd been sent to deal with it instantly. The 5th of September, there was a bomb at the Hilton on Park Lane that killed two people injured 63. On the 9th of October, a bomb went off outside Green Park tube station on Piccadilly, killed one man and injured 20, some of them children on a night out. And in the rest of October and November, 1975, there are bombs in the West End every few days. And these are the work of a provisional IRA cell

who were later captured, captured in December in Bulcom Street near Marleybone. So that's why they're called the Bulcombe Street Gang. And there are seven more bomb attacks in London in 1976. They've slightly been forgotten, I think, now. People don't really talk about these. But, I mean, there's basically a bomb every few days in the West End in late 1975 and 1976.

And then, of course, on top of all that, every day when you opened your newspaper at the breakfast table as people still did in the 70s you would read reports of some new shooting or some new atrocity in Northern Ireland

so maybe 500 people kill more than 500 actually in the course of 1975 and 1976 and actually some of the worst incidents that the troubles happened in those years So the sense of a country disintegrating into violence completely the whole time

and I think the link between that and the popular culture I mean it's obvious on the one hand people want very escapist popular culture or they want nostalgia, so they're looking back to the war, as we were talking about last week. But on the other hand, if you're young, there is a sense of kind of violence in the air, I think, and of a sort of a disintegration and whatnot, which obviously plays a part in the genesis of punk music.

So that's the background, but let's get back to the politics. So what is the Prime Minister been doing? Harold Wilson has been on holiday that August. After the referendum was over, he went off to, of course, inevitably, the silly aisles to wear his very short shorts. His chief policy advisor Bernard Donahue has been on holiday in France. When Donahue gets back, he writes this unbelievably searing diary entry about the state of the nation. He says, I've been in France, I've come home, and I've been forced to realise that this nation is in sad decline. And he says, because Harold is in the silly aisles, he just doesn't get it.

He's completely isolated from the remorseless relative decline of this country. And then this extraordinary passage. Britain is a miserable sight A society of failures Full of apathy Aroused only by envy At the success of others Meanness has replaced generosity

Envy has replaced endeavour Malice is the most common motivation This is the social personality Of a loser Fascism could breed In this unhealthy climate When he says That its society arrives

Only by envy at the success of others I mean that's quite a right wing Perspective isn't it The politics of envy and all of that Yeah completely And this is the result, I think, of having been in Downing Street and having, you know, Donahue has been there all the time when the different union leaders have come in to demand a particular deal for their members. And they would literally say, I mean, there was some fantastic sort of accounts. They would say, I'm the leader of the railwayman.

I notice the postman got 30%. I have to go back to my, you know, my members and say that I've got better than the postman. Yeah, this is how it is. And this sort of competition, I think a lot of Labour Ministers found this incredibly depressing, that they're basically being forced into this constant game of giving out bigger and bigger deals. So you think he's specifically thinking about union leaders when he says that? I don't know that he's necessarily specifically thinking about it, but I think there's a general sense of mean spiritedness in politics at this point and in public life and a sense of kind of national solidarity breaking down. And also, Dominic, those awful enormous kippa ties and the brown suits and the very thick glasses. frames. I mean, it's really depressing. Do they have those in France? I don't think so.

No, I think they do actually. I think there's some terrible fashions in France. I mean, it's important to remember that through all this period these people are eating 1970s food. So imagine how depressing that is. Yeah, Black Forest Gatto. Well, they're eating Black Forest Gatto, but also drinking enormous quantities, presumably of blue none. And Black Tower, what else would they be drinking, sort of wine in elaborate bottles with a kind of lattice on the outside? However, on the positive side, as you remind us in your wonderful books, children do have space hoppers. So it's not all bad. They do have spacehoppers. Yeah, and rally chopper bikes. So every we've literally ticked every box, every 70's box. So anyway, Donna Hughes rant is typical of the

crisis of confidence at the top. And this is obviously reflecting the state of the economy. So as we've said, inflation's out of control. They're actually giving out all these pay deals that the union leaders themselves think are a little bit bonkers. So it's the union leader's job to defend their members. So they have to keep asking for more. But they are very conscious that this kind of free-for-all is sending the economy towards the abyss. So as we said last time, inflation in Britain at this point is rising five times faster than in any other comparable European country. You know, if you're a shopper, if you're Margaret Thatcher pretending to be an ordinary housewife, the price of sugar has gone up by 200% in 12 months, electricity by 66%, coal by

47%, the price of milk has doubled. If you're old, if you're living off your savings or a pension, it's being eaten away every week by inflation. If you're self-employed, if you belong to a much smaller and weaker union or no union at all, you are in real trouble. And even Labour papers by this point are hammering the government on this issue. And what really alarms people is that the government just seemed completely powerless to do anything.

I mean, there is a definite sort of pierced armour feel to all this. The economist says Britain's dream of apocalypse is horribly close to coming true. The Sunday Mirror, a Labour paper, Why are we waiting? Isn't it obvious that the government must act against inflation, that we can't go on like this? So Harold Wilson is obviously the head of the government. He's the prime minister.

But he's depressed and torpid. Yeah, and he's drinking as brandy and Marcia is giving him a hard time. The person who has primary responsibility for dealing with all this is the Chancellor, Dennis Healy. And we haven't seen much of him since the 1974 series that we did two years ago. And it's important to remind people that he is an absolutely tremendous. man. History's greatest eyebrows. His history's greatest eyebrows, exactly. So he came from West Yorkshire. He went to Balliol College, Oxford, tremendous feat. He fought with great courage in North Africa and in Italy. He was the military landing officer for the Allies at Anzio, so, you know, really put himself

in harm's way. Then he became an MP on the right of the Labour Party. And as you say Tom, he is best known for his enormous eyebrows. But he's also very, I mean, he's famously, clever and he loves to advertise his cleverness. He doesn't hide his eyes under a bushel, doesn't he? He doesn't. He's very arrogant. He's exceedingly rude. He's a basive bruiser. He despises a lot of his fellow Labour MPs.

And he much prefers, as he will always tell you, Emily Dickinson, Flobert, Tijanef, all these kind of people. So this is his hinterland. Yeah. Politicians should have a hinterland. You are never allowed to mention Denisili without mentioning the fact. that he had a hinterland. And actually he wrote a book, which I have,

all about his hinterland, which is a brilliant thing to do. He basically wrote a book called My Secret Planet, which is basically a book about how clever he was. It was basically a list of his favorite poets, his favorite authors. They're more recondite and obscure, the better. Just so he could show off.

And every now and again, there'd be a moment in this book where he'd say, Roy Jenkins, of course, had never read Dusty F's in the original, or whatever it might be. Because also the other thing is, he's incredibly easy to impersonate.

And this is the golden age of beige impersonations as featured by Mike Yarwood, who coined the phrase silly billy that Dennis Healy's always meant to be saying but doesn't. And then Dennis Healy does actually take it up and starts using it. And to his massive credit, Dennis Healy also used to go on the Dame Edna Everidge show a lot.

Did you see this? He went on once with Roger Moore and they both had, Dame Edna made them both wear badges. His said Den. Roger Moore said Roger Moore said and they had to perform

a song and dance number with Dame Edna. I think Healy had only just stepped down as chancellor or something. It was an extraordinary thing to do. So Healy had been Chancellor since 74 and in 74 he had thrown money around

with gay abandon in order to win the October election. But then in January 75 his treasury officials came to him and they said enough. Like you've got to stop this. This is mad. You've got to change direction.

And because Healy is actually a very clever man and he's intellectually self-confident. He's self-confident enough to listen to them and to say, okay, fair enough, I will change. And it's very rare that a chancellor does that actually. It's one of the signal examples in modern British history of a chancellor starting off as one thing and then turning into something else. So he then reinvents himself as something of a monetarist, as somebody who is basically going to use monetary targets to bring inflation down. and in the first half of 1975 what you have is Healy going to all these meetings

with the other Labour ministers and he says to them again and again look this social contract that we've got with the unions is a complete joke it's a complete failure we should stop borrowing so much money inflation is the bill all and end all

and we absolutely have to get it down and if you're on the Labour left and you're sitting here and Healy in his sort of very rude and arrogant way is telling you this you're very upset and offended by it because you have

hate the thought of making any cuts. So Tony Ben, who we talked about last time, Tony Ben's not really that bothered about borrowing money and about inflation. What he wants to see is more spending, loads of new social programmes, more egalitarianism, all of this kind of thing. So by the sort of middle of 75, you have clearly a very big row brewing between the two wings of the Labour Party. And as if that's not bad enough, as the summer goes on, the economic news is getting worse and worse. So two weeks after the referendum, the European referendum on the 20th of June, healy gave the cabinet this kind of

apocalyptic warning, which Barbara Castle, one of his colleagues, recorded in her diary. Inflation, he said was terrifying. Borrowing could stop overnight. Anything could trigger off a disastrous run on the pound and force us into one billion pounds worth of public expenditure cuts this year. There was

not a minute to waste. But of course they are specialists in waiting minutes because they've got their tiny majority. Wilson is so anxious about provoking the left that he'd rather do nothing. He'd rather carry on sliding than cause a split in his party. Anyway, Healy was quite right. Ten days later, on the 30th of June, the pound started to slide.

And it slides and slides. And in four hours, it fell from $2.23 to $2.17. And at that stage, that was the quickest fall in the pound's value in history. But presumably this is seen on the left of the Labour Party. as the names of Zurich kicking in, international finance, doing its worse. Exactly right. So if you're on the left of the Labour Party, if you're Tony Benn, you look at this and you say, well, this is international capitalism conspiring against British socialism. You know, that's, you basically say, why should we listen to what foreign speculators and bankers

want us to do? We just plow on, you know, and if necessary we'll put up tariff, we'll come onto Tony Ben's programme. We, if necessary, put up huge tariff walls and protection. barriers and stuff when we seal ourselves off. It's the argument that Andy Burner makes about, you know, don't be in hock to the capital markets and Zach Polanski saying it as well. So it's a kind of a perspective that's coming back into fashion now. So I'm going to give a, I'm going to portray my hand here. I think it's a very good argument to make when you're not actually in hock to the capitalist.

You know, to the capital markets, you don't need to borrow any money. I think if you're trying to borrow enormous sums of money, in my experience, you have to listen to the lender. Otherwise, they won't lend you the money. Anyway, there is this huge row inside Downing Street about what to do. And they finally hammer out a sort of deal with the unions, a kind of informal deal. The unions promise that they will cap all wage increases at £6 a week.

And actually, that's quite a big concession from them because it means that even though wages is then still rising at about 14% a year, prices are going up much more than that. So if you're an ordinary working man, you're taking a little bit of a hit in your spending power and living standards. Yeah, it's austerity. I mean, this is what Tony Benn would definitely say. And in the long run, actually, this will catch up with the Labor government right at the end of the decade when union members rebel against it. Anyway, for the time being, it's enough.

The pressure on the pound eases a bit. And actually, Britain has been very lucky. You could say Britain was incredibly lucky to have got away with its kind of proflagacy for as long as it did. And one reason is that when the Arab oil nations made their great, you know, when they got their winnings after the oil shock of 1973, a lot of them put their money into sterling. They invested it in sterling. And they didn't do this because they thought that Britain was a great going concern. They actually just almost did it out of sort of sentimental traditionalism. Britain is the banker of the world. Obviously, when you've got loads of money, you put it into the bound. But as one of Dennis Heed's treasury colleagues, I got Edmund Dell, wrote a brilliant book about all this. As Dell said in his book, it was only a matter of time. before the Arabs basically realized this was a terrible place to put their money. And once they took it out, we were going to be in massive trouble. And by the autumn, surprise, surprise, the pressure is going again.

And the Bank of England, and this will be a theme all this week, the Bank of England was spending hundreds of millions of pounds in its currency reserves to basically buy up sterling and to defend the exchange rate. And is that done for economic reasons or for kind of prestige reasons? I think they're linked. So the prestige reasons, For what some of listeners may think are silly reasons, people like to think that their currency is really valuable and worth something.

They don't like to see their currency being debauched. And to devalue your currency is seen as a national humiliation. But there's a very good economic reason where you don't want the pound to fall. And that is, the more that the pound falls, the more expensive foreign imports are to buy. As the inflation goes up. Yeah. If you're 70s Britain and you're buying more and more Japanese washing machines and German

cars and so on and so forth, then if the pound falls and you're spending much more on these things, then you've got massive inflation and a hit in the standard of living. And so no government wants to see that. Why aren't the Labour government listening to Dennis Healy? Why isn't the Prime Minister forcing them to do anything about it? Well, this brings us to the main character in the story who is Harold Wilson. So as we saw last time, Wilson is knackered, he's ill, he's increasingly reliance on the brandy bottle. He says to Bernard Donogne here at one point, the trouble with me now is I only have the same old solutions for the same old problems. And then a few weeks after that, so this is in the sort of late summer of 75, he has a

massive argument with his press chief and speechwriter Joe Haynes. Wilson has written himself a draft speech and Haynes says to him, I mean, this is extraordinary the way they used to speak to the Prime Minister. Haynes says to him this is absolutely useless. He says it's full of your old cliches, it's got whole paragraphs repeated from previous speeches. And Wilson snaps at him and says, well, I don't have anything new to say, do I? And Haynes said, well, you might put some of your old ideas in new words. Why don't you try doing that? And this sort of sense that Wilson is, he's definitely on the downward slope. So he's getting, he used to have a brilliant, brilliant memory, but he's getting things wrong in meetings. He's actually skipping meetings.

He's making excuses to skip meetings. He says he's got a cold, says he's got stomach upset. He's an increasingly sad figure. And the moment that I think captures this really nicely, it's December 1975, they're having a meeting surprise, surprise about cuts with Dennis Healy. And somebody says, well, we can't really decide, we'll have to have a meeting of the full cabinet tomorrow on Friday to discuss it. And Wilson, the Prime Minister, says, well, I can't make Friday. And Bernard Donahue writes in his diary that in full view of everybody else, Healy turned to him and said, it might be better for all of us if you weren't there.

and Wilson pretended not to hear this and then he went out to the toilet and Bernard Donahue followed him out and found him in the toilet with kind of with his head in his hands absolutely crushed and just said very weakly I'm so exhausted I'm so tired

and he just he basically allowed himself to be insulted in this way by his own chancellor in front of everybody he did nothing at all about it and he is as Donaghy writes a month later privately we know he's blown he's no more interest no more ideas

no appetite for power so it is quite a sad story I think yeah very sad because he was he was such a brilliant able go-getting white technology kind of guy wasn't he in the 60s he was and now the sheen has worn off the Gannock's plastic raincoats

yeah Gannett there would be turning up again later they will yeah shop soiled is the word that's always used isn't it well I think I use that word a lot with I mean you say always used nobody else writes about Howard Wilson to be honest. So what lies behind this? We talked about all the business of Mars here and all that last time,

but actually Wilson by now has decided to walk away. For years he had been saying to people, if I ever got back into power, I'd probably only do two more years. But people didn't believe him because they thought, oh, he's so ambitious and so wily, he'd never walk away. But in the summer of 1975, he said to Joe Haynes, I want to go sooner rather than later. I'm very tired.

And he also said, I am totally fed up with the Labour Party and I find its behaviour intolerable. And probably that summer, late that summer, he tells the Queen. And the Queen loves him, doesn't she? He's her favourite. It was a proper monarchist. He's a sort of, he's quite, they talk probably about, I bet they talk about Agatha Christie or something. Yeah, and they'd bond over the Tupperware. Yeah, they absolutely would.

So the way he tells her is so sort of, it's so fitting. They were staying on Balmoral, him and M. Mary and they went to, there was some sort of cottage on the estate in Balmoral and the Queen drove them there in a Land Rover and they went to this cottage and it was almost like Marion Thoinette at Le Petitriano or whatever. The Queen made tea for Harold Wilson and Mary and then started doing the washing up and while she was doing the washing up Wilson came and talked to her at the sink and said, I'm going to resign. So it's a kitchen sink drama. Very good Tom. Now he at first he thought he might go that autumn but basically Marcia

persuades him to stay on. She doesn't want him to go because then she'll lose all her, you know, all her power and stuff. I mean, the new prime minister's not going to take her on,

is he? No, no, no, no. And Donahue and Haynes knew that he was going to go and he kept telling them, you know, I'll go in Biff at Christmas or something and then he would postpone it.

And they were very frustrated by this because they thought, you know, he's run out of ideas. He probably should go. And as Donahue said, it's a sign of his weakness. He should take a decision and stick to it.

By the beginning of 76, there are lots of rumours going around Whitehall and Westminster, but most people don't really believe them, because they think of Wilson as so wily and so cunning that this is another of his schemes to hold on to power a bit longer. At last he decides on a departure date, well, on an announcement date, I should say. He will announce his departure on Thursday the 11th of March, 1976, which is his 60th birthday. But then fate takes a turn. Because as we said, confidence in the British economy is at a very, very, very low ebb, and it won't take much to trigger another run on the pound. On the 5th of March, that's a week before Wilson is planning to make his

announcement. The Bank of England decides to cut interest rates to try and give the economy a little bit of a boost. And the markets don't like this at all, and people start rushing to sell sterling. And quite soon, the rush turns into a stampede. So by the evening of the following day, the 6th. The pound has now fallen to $1.98. Remember, it was $2.23 a few minutes ago. It's now $1.98, the lowest level in its history. And the Bank of England panics, and it starts desperately buying up sterling. And in total, in the next two weeks, it spends a billion dollars to buy up pounds, to try and preserve the value of the currency. But it's no good. The pound just keeps sliding. So by the 10th, it's down to $1.92. And of course, as a result of all this,

You know, as the pound falls, the danger is that inflation will start to rise. So that night, so the 10th, the Commons voted on yet more Dennis Healy cuts. And to the government's horror, the Labour left rebel, and the government loses by 28 votes, a massive humiliation. Can I just ask, the Tories aren't voting for these cuts? No, the Tories, we always vote against the government. Okay, but they would presumably be in favour of these cuts. Yeah. They're putting party ahead of country.

Oh, I mean, that's just not how politics works, Tom. You're in the opposition. Your duty is to oppose. I mean, basically, Mrs. Satcher agrees with Dennis Healy's diagnosis, right? She does, but I mean, they would say, I mean, any opposition in this circumstance says this government is, you know, should be turfed out, we should get rid of them and get a new government in, and we vote against them. I mean, it would be unheard of, really, for the opposition to vote with the government

on part of the government's own economic agenda. That would be very bizarre. But if the government wins the vote in a kind of Tory, right of the Labour Party alliance, then that's very bad for the government. I'm just playing four-dimensional chess here in a way that clearly Mrs. Satcher wasn't. That is four-dimensional.

I think if you were Howard Wilson and the tourists are always going to vote with you on your economic plans, you'd probably take it because it means you can have a nice lion or something. You don't have to worry about whipping all your elderly MPs into the voting lobby anymore.

Yeah, well, I mean, you know, he may have got the top economics degree at Oxford in its history, but he's not as shrewd a political operator as me. No, clearly not. Howard Wilson isn't there for this crucial vote. He's at Marcia's birthday party. So anyway, the next day is the 11th, and it's Howard Wilson's birthday,

and he doesn't make the announcement after all. I mean, to be fair to him, it would be crazy to make the announcement in the middle of this kind of sterling crisis. And instead, a cabinet, when he was going to make the announcement, the cabinet sing happy birthday to him instead, led by Shirley Williams. Do you know what Tony Ben wrote about it in his diary? It was odious. So that evening said Wilson's birthday.

He doesn't have a fun birthday evening because it's a vote of confidence in his government. And it's an incredibly fractious debate. Basically, it's sink or swim for the government. Healy leads for the government, the chancellor, and he spends most of his time actually hammering the left, not the right. So he says, the left are going to betray the whole of our labor movement to its enemies if they don't vote for us.

And as they all go to vote, there is a massive row. Now these are in the days before our politics, before Parliament was televised. In fact, before Parliament was even broadcast on the radio. So you could get away with all kinds of behaviour. And Healy actually gets into a brawl. A punch up. A punch up. So he's literally a bruiser.

He's literally a bruiser. And with some of the left-wing MPs, and one of them said to the Times, I think it was the next day, complained. He said, the Chancellor's verbal behaviour was unprinciable and obscene in the extreme. He came across like a drunken oath. What did he say, Dominic? He said, and Callum will have to get his bleeper ready. He said, go and fuck yourselves, you fuck us.

He shouted this at the Labour left, left of his own party. Is it in Hansard? I don't think it is in Hansard. No, it's not in Ansard. Because it says they're going out. Anyway, at one level it works because the rebels fall into line and the government survives. But Dennis Healy, unwittingly, has shot himself in the foot because this is going to be a leadership contest, which there clearly is.

He doesn't know it. He will not be well placed, having just shouted this at half of it. of his own party. So Wilson spends the next weekend at Chequers, his country house with his wife Mary. When he comes back to London on the Monday morning the 15th, he listens to the news in his car, and the news says the markets have opened and they're actually pretty calm. And when he gets to number 10, he says to his civil servants, all systems go. Let's do this. So the next day is the Tuesday. It's a regular cabinet meeting. All his ministers come in. And Wilson takes two of them aside beforehand. First of all, he takes Jim Callahan aside, the Foreign Secretary. Callahan

is Wilson's oldest rival and he's been part of his government since 1964. So they've always been sort of slightly wary of each other. Frenomies, do you think? Frenemies, exactly. They're like old prize fighters. And Wilson calls him upstairs and Callahan comes down and he comes down and he's described as looking winded. And when Joe Haynes says, good morning Jim to him. Callahan just says, is it? And then Wilson takes Healy aside. Takes him into the toilet. And Wilson being Wilson, he probably puts on all the taps to make sure they're not being listened to by MI5. We'll come back to this. Healy emerges impassive and he doesn't give anything away. And then they all sit around the cabinet table. Wilson reads this prepared statement. He says, I've been labor leader for 13 years. I've decided to step down, give other people a chance, time for fresh ideas, all of this.

some of them started crying Callahan who now has this sort of glint in his eye of somebody who's fancying a shot at the top job he delivers this tribute and he says thank you so much Harold for all you've done for us and all this kind of thing the meeting breaks up they're all in shock Wilson goes off to ring the trade union leaders

that's a sign of where power lies in Britain actually and then he goes up and of course he has to have lunch on his own because of Marcy's prescriptions So the news is travelling fast Just before we get to the break The Times sent a man onto the streets of London To gauge people's reactions that afternoon After the news broke

And most people were absolutely amazed The Wilson was going Kind of unheard of to walk away With no warning in your pomp But there were some very funny responses An old man in a cardigan said You can't control a government With people going against you

I'm a labour man I have to be because I come from Durham I say the trouble with the party Is there's too many of those left wingers in it And then the other man whose contribution I enjoy who was a 78-year-old man in a flat cap who used to work for the local council and he absolutely, he said he hated the left.

He said it was the left's fault. They were always having a go at him. There's only so much a man can stand. I hate those left wingers. I despise them. And are these representatives? Or have you just cherry-picked them? No, cherry-picked them, of course.

Of course they're cherry-picked. Because there must be some people who... Yeah. I mean, particularly they're working for that council from Durham. There must be some people in working in councils in Durham who like The left? I suppose it was fresh in people's minds because Wilson had just had this huge battle with the left.

They've been these stuff business in the House of Commons. Okay, fair enough. So, it's all up for grabs now. Who will the Labour Party pick as the new Prime Minister? Is there perhaps a secret scandal behind Harold Wilson's resignation? And Tom, a scandal involving MI5 bugs in Downing Street, the South African secret police, some lavender note paper, and a blind man on the corner of the Charing Cross Road.

Local news is in decline across Canada, and this is bad news for all of us. With less local news, noise, rumors, and misinformation fill the void, and it gets harder to separate truth from fiction. That's why CBC News is putting more journalists in more places across Canada, reporting on the ground from where you live, telling the stories that matter to all of us, because local news is big news. Choose news, not noise.

CBC News. Hello everyone and welcome back to the rest of history where Harold Wilson has resigned. British politics is in tumult. What happens next, Dominic? Well, there's all kinds of mystery and all kinds of exciting espionage and sexual scandal details come. The general reaction at the time is that there must be some sinister explanation for all this. So most people thought Harold Wilson is so shifty. He would never just walk away.

The Sunday Times called it yet another characteristic confidence trick. Wilson's friend Barbara Castle wrote in her diary, she said, I wonder what exactly Harold is up to. More than meets the eye, I have no doubt. It's like, is it Metternick when Talleyron died? And he said, I wonder what he means by that. It's that kind of order, isn't it? Exactly.

So the most common rumor at the time, which goes around Westminster, and has never really gone away, to be honest, is that he was being framed by the security services over some hideous financial or sexual scandal. And we will come on to this later on because Wilson himself does a lot to fuel these rumours. Anyway, he has his farewell dinner on the 22nd of March and it's a very, very miserable.

And we mentioned 1970s food. It's a very desultory occasion. The only highlight is when a waiter accidentally poured Hollandey's sauce all over Dennis Healy. Accidentally? Yeah, maybe it's somebody who's got investments and is paying 98% in tax on his investments or something. Tony Ben said in his diary afterwards,

The pathetic thing about tonight when Tony Bennett is so harsh about Harold Wilson, the pathetic thing about tonight is that nobody is sad that he was going. He hasn't inspired any affection. He's fudged every issue, dodged every difficulty,

but kept us in power, kept us together and ground out the administrative decisions. But someone's going to miss him, right? The queen? Well, the queen, actually, so the queen comes the next day for dinner at number 10.

And this is a signal honor. The queen only did this, think for Churchill when he resigned, so for Winston and for Harold Wilson. So she really, I mean, she thinks of Harold Wilson as a leader on the, on the scale of Churchill. Yeah, the two titans of which is 20th century politics. I'm sure, like international listeners. I mean, people probably study Wilson, don't they? In like schools in Australia and American stuff. It's one of the great men of history. Yeah, I imagine that's why we're not shedding listeners to this episode in any way, in the Sydney and New York. So there's then a hiatus while they wait for the Labour MPs to a

elect a new leader. And that takes another two weeks. At the end of March, there is a sign of trouble to come. Joe Haynes says to his friend Bernardinehu that he has seen, and I quote, 50 names for peers and knighthoods, all in Marcia's handwriting on a sheet of lavender colored notepaper simply ticked by Harold Wilson. We will come back to this. So remember this lavender notepaper. Wilson finally leaves on the 5th of April when the Labour MPs have finally picked a successor, we'll tell you who the successor is at the end of the episode. There was a last lunch for his wife and all his aides. Surprise, they have to stand around for 45 minutes waiting for Marcia to join them. You know, one last little power play from Marcia. And Donahue says in his

diary afterwards, he says it was an embarrassing way to go out, but fitting. Harold Wilson went out as he came in, a remarkable man, but too often humiliated and made shabby by this sad association. And the sad association is with Marcia. With Marcia. But this is not quite the end of the story because that lavender-colored list. So this was Wilson's resignation honors list. For our overseas listeners, when you resign as Prime Minister, you have one last kind of little chance to dole out patronage to, you know, your cronies and to people you, you know, who've helped you and all this kind of thing. And this has never before been an issue for an outgoing Prime Minister, but in Wilson's case, it's toxic for his reputation. For weeks, for the last couple of

a couple of weeks inside number 10 they had been gathering rumors this was going to be a massive problem some of wilson's civil servants had complained to him that the list was was bonkers that it was full of people in the media who had promised to pay him money for books or for tv series and things and it's very clear from donahue's diary the person they thought had drawn up the list was marcia williams it's marcia's last chance to influence honours and she is going for the lot and he and Joe Haynes had some massive rows with Wilson in the final days, begging him to change the list. He is not prepared to listen.

He is suicidal. He doesn't seem to care about the reaction to this final and scandalous use of patronage. He just wants to be rid of the whole thing and to buy some peace with Marcia. Do you think it's the onset of dementia? I think it's not caring. I think it's, Wilson was always incredibly weak when it came to Marcia. I think, you know, some of the quotes from the first half,

after the episode where Donahue says, you know, he's tired, he's, he's blown, he doesn't care. I think it's that, actually. I think he just basically thought, yeah, why not? You know, who cares? I just wonder whether it's expressive of a kind of mental decline as well. Oh, there's no doubt there's a mental decline. How much that is to do with the dementia that basically is consuming him by the beginning

of the 1980s? Or how much this is just exhaustion, drinking, the stress. It's hard to distinguish those two things. things. And I think it's not a well man. But he's not a well man at all. No, exactly. Then there's a long delay.

The list isn't published. And the reason is that the Bank of England, the home office and the inland revenue have complained about some of the names on the list. And Haynes said to Bernard Donahue, there are people on that list that Scotland Yard might in due course wish to interview, which is not a good sign. And then finally, at the end of May, the list is published. And the reaction is a complete meltdown. So there are 42 names on the list And actually most of them are pretty standard They are like the staff at Downing Street

The housekeepers at checkers This kind of thing But some of the names are inflammatory So Wilson's publisher, George Videnfeldt He gets a peerage A property developer called Eric Miller Gets a knighthood Corporate Raiders James Goldsmith

Later of the Was it the referendum party Yeah and Father of Jemima Yes and Zach And Zach and Ben So James Goldsmith, he gets a knighthood. Another corporate raider called James Hansen gets a knighthood. The man who had made Wilson's raincoats,

so the Gannix raincoat tycoon, Joseph, already Sir Joseph Kagan, he gets a peerage. You see, I love a topic on the rest of history where you get to have the phrase, Gannix raincoat tycoon. Yeah. There aren't that many. No, there aren't.

I go that with Hannibal. No, you don't at all. even Samuel Johnson didn't have a raincoat tycoon, didn't he? So these are not traditional labour people. In fact, a lot of them don't even vote Labor. They are friends of Marciers. So Eric Miller, the property developed, he'd been very close to her. He'd possibly been her lover.

There were claims that he had bought her a muse flat in the West End. James Goldsmith, there were claims that he had promised to make her a director of his firm and that he was paying her son's private school fees. and all the newspapers said this was absolutely appalling. The Times. By his last act of patronage, Harold Wilson has succeeded in reducing himself and not only himself. He has demeaned the office of Prime Minister. And actually, Labour MPs were appalled by this.

So what about Tony Ben? Tony Ben, well, I mean, he said it was odious when they sang happy birthday to Wilson, so he's not going to be best pleased by this. That he should pick inadequate buccaneering, sharp sheisters for his honours was disgust. It was unsavory, disreputable, and it just told the whole Wilson's story in a single episode. And Haynes and Donahue go around everywhere, and they say to everybody, this is Marcia's list. She wrote it on a lavender note paper. Wilson is an absolute weakling of a man, and he just handed it in.

Now, Marcia and Wilson denied this. Wilson said this is sexism, and Marcia said this is snobbery because you don't like the people on the list. And actually, the row that followed lasted for another. I'm just doing the maths, more than 35 years, because Marcy was so angry about this that she was still suing people well into the 21st century. To what effect? She would win.

You couldn't prove that she had done it, and she would say, she generally, I think, won the case. And so, what's the consensus now? She definitely did it. Oh, right, okay. The BBC did a drama in the late 2000s, called, I think, the lavender list, and she basically forced them to apologize and to withdraw it.

She said, you know, there's no evidence, this is a lie, this is, you know, all of this kind of thing. Emily, who is our head of written content, says there are extraordinary carry BJ parallels. So listeners can read into that what they will. But she's not wrong, right? I mean, the idea that there's a sort of a prime minister who's handing out, a departing prime minister handing out sort of bounty to his cronies, And actually, there's some sinister female in the background who is pulling the strings. I mean, that's the sort of Lady Macbeth figure.

I mean, you could argue, I suppose, that this is sexism. But in this case, I'm not sure that it is. And what's disastrous for Wilson is the two of the people on the list, Scotland Yard does wish to interview them. So Eric Miller, who was the guy who had supposedly bought Marcia a flat, a year later, he was charged with fraud, theft and forgery, and he shot himself. Oh, no. So that looked very bad for Wilson.

And what about the Ganex raincoat tycoon? How does he bear up? Oh, no, this is a terrible story. The Gannix raincoat tycoon, Joseph Kagan. I mean, he's the sort of poster boy for Harold Wilson's resignation on his list. He was charged with tax evasion in 1978. He was charged bizarrely with stealing barrels of dye from his own raincoat company. Wow.

What was he doing with it? I don't know. Maybe secretly dying, making rival raincoats, making his own raincoats, who knows? Dying them lavender. Yeah, exactly. He ended up in prison where he literally sewed mailbags and he lost his knighthood but not his peerage and he returned to the House of Lords and became a campaigner for penal reform. But this is not the only blow to Harold Wilson's reputation. We are moving fast towards that blind man on the Charing Cross Road. So in the 1974 series, we described how Wilson had been increasingly paranoid that he was being spied on by the security services. He thought MI5 was stealing his tax documents. He told his ministers that there was a bug in the cabinet room ceiling. And he was also convinced that there was some sort of listing device hidden inside a portrait of Gladstone.

Now, there is actually a degree of truth in this as we talked about in 2024. In the 1940s, Wilson as a trade minister had visited Moscow. And ever since then, MI5 had kept a file on him under the name Norman John Worthington. and some of the, at least one of the people on that list had links to the KGB. Joseph Kagan, the Gannex raincoat tycoon, used to go and I think play chess with a KGB man from the Soviet embassy.

And the claim is that maybe this was because he had family back in Lithuania, but also it could be more dodgy. Also, there were bugs in number 10. They had been installed under Harold McMillan in the 50s. The official history of MI5 by Christopher Andrews says they were defunct and no longer maintained. And to be honest, most of Wilson's own aides and ministers thought he was bonkers about all this. They thought he was paranoid.

So when Tony Ben brought all this up with James Callahan, Wilson's successor, Callahan told him the story about the Gladstone portrait, but Callahan didn't tell it as in, gosh, maybe there is a bug in the portrait. Callahan told it as a joke against Wilson, to say Wilson's, you know, lost the plot. But Wilson believes all this, and it's compounded by 1976 by a scandal that we talked about in the early days of the rest is history, it's great to welcome back to the show, fan favorite Jeremy Thorpe,

the leader of the tiny Liberal Party. So the Liberals, for context, have only 13 MPs. Now, just a month after Wilson left office, Thorpe resigned as leader of the Liberals. And the reason, we did an episode on this in the early days of the show,

it turned out that Thorpe had once had an affair with a former stable groom called Norman Scott. Scott held a grudge against him because he believed that Thorpe had stolen his national insurance card. They could never forgive this. Anyway, Scott eventually comes out and he says, Jeremy Thorpe had this affair with me, he stole my national insurance card,

and what is worse, he plotted to have me murdered by an airline pilot on a moor. And I wasn't murdered, but my dog, Rinker, was murdered, and that's terrible. Thorpe, first of all, said this was a lie. He said, I'm being framed by the South African Security Service, boss. They're not called boss. They're called boss. That was what they're called B-O-S. That's so 70s. I'm being framed by boss because I'm anti-apartheid.

And Wilson believed him. He completely believed him. In February 1976, Wilson made Donahue stay behind after work for three hours to discuss it. And I quote, he is absolutely convinced that the South Africans are behind it. The PM is loving it all, since it appeals to all his obsessions with plots, spies, leaks, conspiracies, etc. Wilson's confidence, by and large, said to him, him, please don't pursue this. This is mad from you.

So in March, Barbara Castle, one of his ministers had lunch with him, and he said to her, I and Marcia, or as he called her, Detective Inspector Falkander, because she's now Lady Falkander, we have looked into this, and we have conclusive proof that it is a South African plot.

Castle said to him, please don't pursue this. This is insane. Why would boss the South African security service? Why would they pick on the Liberal Party, which has only 13 MPs. Why would they go to all this effort to bring down a man that basically nobody outside Britain has ever heard of? I mean, I suppose the South African government hates liberals. It does hate liberals. It hates anti-apartheid campaigns, which thought was. But really, you're going to,

well, the problem it is, Castle also says, also Jeremy thought was having an affair with this bloke? How does she know that? Do you know the person who's looked into it for her? Who? Jack Straw, the future Blair Wright Home Secretary, who worked for her, looked into it, did some digging and found out basically, I don't know how they found it out, but it basically was common knowledge by this point. Wilson just wouldn't listen. He was deaf to reason. That same day that he had the lunch for Barbara Castle, he went to the Commons. He said to the Commons, Thorpe is being targeted by South African intelligence. They are using massive reserves of business, money and private agents of various kinds. He said it publicly. Anyway, we've now moved on to May

after Wilson's resignation. On the 9th of May, the Sunday Times published letters that showed that Thorpe had been having an affair with this bloke. It's that the letters, Tom, if you may recall, that have the telltale and damning phrase, bunnies can and will go to France. Spoken, very entertaining by Hugh Grant in the dramatisation of this story.

Exactly. You have to imagine that being said with enormous amount of suggestiveness. The next day, Thorpe resigned as leader of the Liberal Party. But Wilson just will not give this up. He is still convinced that Thorpe is being framed. And so two days later, Wilson rang a BBC journalist, a young journalist called Barry Penrose. He basically picked him out of a telephone book or something and said,

Come to my flat in Westminster. I've got a story for you. So Penrose roped in this mate of his called Roger Corteur, who was a researcher at the BBC. And they both go along to Wilson's flat in Lord North Street. When they get there, they find Wilson there is puffing on a cigar. Wilson says to them, I think democracy as we know it is in grave danger. He says, the British security services were out to get me for years. They spread rumours that I was running a communist cell in Downing Street.

And these BBC blokes can't believe this. I mean, this guy was prime minister just a few weeks ago. And then he's very calm, he's still puffing on his cigar. He says, they were saying that I was tied up with the communists. The link was Marcia. She was supposed to be a dedicated communist. And he goes on to say, he says, Norman Scott, this stable bloke,

is a South African agent, and he's part of a wider conspiracy with MI5. He says, I want you two to crack the case. If you can crack the case, you'll be the wood, wooden Bernstein of British journalism. This is the British Watergate. And then he reaches this mad peroration. He sort of looks them in the eye,

puffs on his cigar, and he says, I see myself as the big fat spider in the corner. of the room. Sometimes I speak when I'm asleep. You should both listen. Occasionally, when we meet, I might tell you to go to the Charing Cross Road and kick a blind man standing on the corner. That blind man might tell you something, might lead you somewhere. And they leave. And I mean, obviously, they're like, you know, they're in the 20s or early 30s or something. They cannot believe that the Prime Minister of Great Britain from just a few weeks earlier is telling them this stuff about being a spider and the Charing Cross Road.

And they believe it. And they spend months following his leads. And the irony is they follow this mad cul-de-sac about South Africa and they completely missed the truth that Jeremy thought was not a terribly good person and was trying to kill Norman Scott, which is a madder story, really, than the one they investigate. Eventually the BBC lost patience and said to these guys Penrose and Courtea. Enough did this now.

They shut the investigation down. They then sold the story to the newspapers and the Daily Mirror splashed it under the excellent headline, Wilson feared Marcia was being lured into a sex orgy. This is an absolute disaster for Wilson's

reputation. He and Marcia immediately published statements and they said, oh he was just joking about being a spider. He was just joking about the blind man on the Taring Cross Road. But obviously, everybody who knew him in Westminster said, this does sound like the kind of thing Harold would say. He's been saying mad stuff like this for the last few years.

And Marcy has been going around telling everybody that boss are out to get her and Jeremy thought with whom she was quite friendly. Most people at this point just conclude that he's a fantasist. So when Tony Benn again asked James Callahan about it, Callahan said, oh, Harold is just a Walter Mitty, i.e. somebody who's just making up mad stuff in his head. And actually that sets the tone for Wilson after he's. left office because the next few years bring a very sad decline. He'd never had many close friends

in politics and he seems to vanish really after 1976. So within a year or so, there are clear signs, I think, that the Alzheimer's is beginning to claim him. In December 1978, Donahue had a drink with Wilson's former driver. And the driver who's called Bill Howesden said, nobody visits him. He has no friends. It's very sad. He still drinks much too much and his memory is completely going. He can't remember where he's going in the evening. And he had one last turn in the limelight, which people can see bits of on YouTube. It is excruciating. He was invited to be the guest presenter on a BBC chat show called Friday night, Sunday morning. It's in October 1979. It's like a sort of nightmare that you have that you're playing Hamlet and you haven't

done, you know, you haven't learned the lines. Because he's sitting there and he's interviewing Pat Phoenix, the actress from, I think, Coronation Street. And he interviews Harry Seekam. And he runs out of questions. There are long pauses. It's really awkward. He stumbles over his words. He can't read the auto queue.

Even the short clips on YouTube are actually quite a painful watch. And after that, he pretty much vanished. And the mad thing is, really, he had been the defining politician of the 60s and 70s in Britain. So when he resigned in 1976, all the obituaries, sort of political obituaries said, this will be remembered as the Wilson era. But actually nobody ever uses that phrase. Nobody talks about Wilsonism. And as early as 1979, when Margaret Thatcher became prime minister,

it was as though he'd never existed. He just was completely absent from the political conversation. Some historians, since them, I mean, not that many people write about the Wilson government, to be honest. Some historians, because historians probably tend, academics tend to be slightly more left-leaning. They're keener to rehabilitate him. They say, well, there were the liberal reforms. the 60s. He kept Britain out of the Vietnam War, didn't he? Yeah, I mean, that's the thing he's

praised for most. I think it's a reasonable thing to praise him for. He refused to get involved with the Vietnam War, but it's a negative achievement rather than a positive one. And I think when he came in in 1964, he would have dreamed of being remembered for much more sort of substantive things. I mean, you said he was brilliantly clever, but I guess it just shows that being clever isn't everything. It's not everything. Yeah, I mean, I think my verdict on him in my book Seasons and the Sun was he was one of the cleverest and kindest men ever to inhabit number 10 but sadly he was also one of the weakest. He used the weakness almost as an asset because it meant that he never upset his party. He was brilliant at keeping his party together. But he also

he did that by deferring decisions and sort of not doing anything. So in Bernard Donahue's memoirs, Donahue who worked for him as his policy advisor like his senior advisor said of him, you know, we wasted our time in Downing Street, completely failed to take to tackle Britain's economic and industrial weakness, and basically all of this left an open goal for Margaret Thatcher in the 80s. And Dennis Healy, who obviously was his chancellor, gave an interview in the 2000s. Someone said, what do you think of Harold Wilson? Dennis Healy said he was a terrible prime minister, which is kind of harsh when you've been his chancellor.

Anyway, he's gone now. So someone's got to replace him. Now, in the 70s was a sainer time than today because they didn't allow activists any role in picking the leader. It was just the MPs. Anyway, this contest to succeed Wilson in some ways has been going on for more than a decade. So, starting really when the first Wilson government ran out of trouble in 1966, people had speculated about who would succeed him.

And for a lot of that period, that intervening period, the favourite, had been a man called Roy Jenkins, who was the Home Secretary and Chancellor in the 60s and is now Home Secretary again. And Roy Jenkins was the son of a minor. He went to Baylor College, Oxford. He has this smooth, urbane, very whiggish style. He can't pronounce his ars properly. He is the darling of the sort of society hostesses of the high-minded.

He's a rest his politics man, isn't he? He's so rest his politics. He completely is. He loves Europe. He loves sensible people, moderation, claret, all of this kind of stuff. all of this actually means that he has now fallen out of favour with the Labour Party which has moved to the left because it's all horny-handed sons of toil

Yes, there's a good story told by Neil Kinnock The one of Jenkins's acolytes went canvassing in the House of Commons tea room and he came up to the table that Kinnock was out with another Labour MPs and he said, will you be voting for Roy Jenkins and a Yorkshire MP said no lad, we're all Labour here

Very good Very good, great repartee So there's Roy Jenkins Another candidate is Jenkins's former best friend and possibly former lover, Anthony Crosland, who he'd been mates with at Oxford. So they'd been very, very close. Crosland had sort of matinee idle good looks

that has now turned into a lounge lizard, I think when you Google him. He's the Environment Secretary. He had been the party's great intellectual in the 50s. He was a big football fan. He took Henry Kissinger to watch Grimsby Town play Gillingham. Did Kissinger enjoy it? Yeah.

And after Chisinger left office, after the Gerald Ford fell from power Crossland took Hissinger to watch Chelsea versus Wolverhampton Wanderers And did wolves win? I don't actually know I should that are the stupid of me not to look that up

but well listeners It's good to let the listeners do a little bit of work I think So there's Jenkins and this is ex-pal Crossland who's a very long shot There's one other candidate on the right really and that is Dennis Healy Yeah Dennis Healy

He's gone around punching people in the face and quoting Emily Dickinson to them. That's not the way to win votes, is it? No, no, no. He's never going to win, but he throws his hat in the ring anyway. So there's the right wing candidates. Then we've got the left wing candidates. So we've got Tony Ben from last time, talking about how much he loves the unions, how much he hates Europe, hates NATO, hates capitalism, all of that. He hasn't been stung on the penis yet by wasp, has he? But that's to come. Not yet. The other candidate on the left is Michael Foote. And he is the sort of sentimental party favorite. He's a brilliant

speaker. He's a brilliant essayist. He's a fan of Jonathan Swift and of Byron and all of these kind of 18th century writers. He looks a million years old. Like he looks older than years. Very long white hair, hasn't he? Yeah. And he dresses scruffily and that's something that will come back to bite him in due course. Yes. He wears an ill-advised coat at a... Donkey jacket, I believe. A Rembrandt's Day service. He looked like an out-of-work Navi, I think is my favourite newspaper verdicts on Michael 4. Anyway, he's employment secretary and his job is to suck up to the trade unions and he's going to be the other left-wing candidate. And then that leaves the middle of the party and the candidate at the centre. And this is the great titan of

British history, Jim Callahan. And I'm delighted to say we'll be talking a lot more about Jim Callaghan in the next episode. So he's the Sanbrook candidate. Well, I like Dennis Healy as well, to be fair. Callahan just to give you a slight sense, we'll get more into him next time. He's the son of a Royal Navy petty officer from Portsmouth. He left school at 17. He never went to university. He rose through the ranks of the unions and the Labour Party. He's already been Chancellor, Home Secretary and Foreign Secretary, so he's done the hat trick.

And so, Domney, if he becomes Prime Minister, he will be the only person in British history who's ever done that, right? Yes, exactly. The Grand Slam! A massive achievement. Massive stakes. His nickname is the keeper of the cloth cap, because he is seen as having this sort of mystical link to the working classes. He's this big bloke. He's avuncular. Everyone always says avuncular by law you have to use that word when you're talking about Jim Calan. He's a bit of a bully,

but he's quite sort of solid and reassuring. He has the definitive 1970s kind of glasses. Yeah, I know. It's like Ronnie Barker and Smiley. And he's just the embodiment of 1970s spectacles wearing man. He is. And the other thing, he wears his trousers incredibly high. So he has very, very high-rise trousers. Anyway, he's been plotting for the leadership for more than a decade. And unlike the other people standing, he doesn't give any interviews. He doesn't publish any policies. He doesn't even appear on TV. He says, everybody knows where I stand. He has brilliant connections with the Labour MPs. He thinks, I don't need to really bother with a public campaign. They know where I stand. Let's see if I can do

this. They have the first ballot on the 25th of March. It's all a bit less dramatic than the Tory business with Margaret Thatcher. It's a sign of just how exhausted and how kind of grey and threadbare they all are, really. Of the also rounds, Crosland comes bottom, he gets 17. Healy gets 31. Jenkins, with his, can't pronounce his ours, he gets 56, which is a really poor showing from him, given that he had been the favourite a few years earlier. It's a sign of how his Euro enthusiasm has hamstrung him.

So he's going to go off to Europe, actually, and run the Euro. European Commission. On the left, Tony Ben does much worse than you might expect. He gets 37 votes. And that's because a lot of MPs as we discussed last week. They say, you know, he's very polite and he's very courteous and he's charming, but I hate him. They're voting on the personality, not the issues. I think exactly which he would despise.

And Michael Foote goes way ahead of him on 90. Michael Foote gets 90 with his long white hair and his love of... Yeah, he hasn't it. Yeah, exactly. He's the front runner at this stage. God, I mean, imagine if they elect Michael Furtt's leader of the Labour Party, that would be mad. They'd never do that, surely. Callahan is just behind him on 84, and that's fine, because basically he knows he'll hoover up all the votes of the other right-wing people. Second ballot, they've all put out,

although also ran's pull out except for Healy. Healy fights on out of just bloody-mindedness and being difficult. Callahan's now narrowly in the lead, 141 to 133 for foot, and the third ballot Healy finally drops out. So Callahan picks up most of his votes. And Callahan on Monday the 5th of April is having lunch on his own in his Commons office. And the chairman of the parliamentary party, Cledwin Hughes comes and knocks on the door and he says, we've got the results.

You have beaten Michael Foote by 176 votes to 137. And Callaghan had this hard man image, but he actually starts crying at this. and he says very slowly and very revealingly I think Prime Minister of Great Britain and I never went to a university and Hughes says to him well you're in good company

the two greatest prime ministers of the century didn't go to university Lloyd George and Churchill and then Callaghan's aides come in to congratulate him and again he harps on the same theme he says to one of them there are many cleverer people than me in the Labour Party but they're there and I'm here You can see the chip on his shoulder.

Anyway, he then goes and addresses all the Labour MPs. He gives them a nice unity speech. He says, you know, clean slate after all the fighting of the Wilson years. And then he gets in the car to take him to Buckingham Palace. And at night, he addresses the British people for the first time as Prime Minister. And his aides prepared him a speech. But interestingly, he tweaked it because he wanted to emphasise the theme of restoring traditional values. And he says, you know, priority is to fight inflation.

We're going to stop borrowing so much money. we stop going deeper and deeper into debt. No one owes Britain a living, he says. I mean, this is the kind of speech that Mrs. Satcha could have given. You're not wrong, because if you look at the rest of it, we've got to stop appeasing the greedy and graspy and selfish. He wants an end to vandalism and violence. The family is at the heart of the battle for our national survival.

Parents should stand firm in defence of old-fashioned morality, and above all, he wants a national effort to uphold our values and our standards. And Tom, this is top Sanbrook Daily Mail column bingo, isn't it? And it's a sign that Callaghan is going to be a very different kind of prime minister from Harold Wilson. So you might think everything is looking great for Britain and for big gym. But no, on his first full day as prime minister, one of his junior ministers called Brian O'Malley died after brain surgery and hospital. on his second day as Prime Minister, another Labour MP, a disgraced Labour MP called, this is very hard to explain in one sentence, but basically a disgraced Labour MP called John Stonehouse,

who had faked his own death on a beach in Miami and then turned up in Melbourne and was arrested as a fraudster. He quit the party, he's returned to British politics, he quits the party, and he says there should be an immediate general election. So now Callahan has no majority at all. after just a couple of days. He's got 314 seats. All the others put together have got 316 seats. And to survive, he has to rely on the votes of two Northern Irish nationalist MPs

who Jerry Fitt and Frank McGuire. So that's pretty bad. He's got no majority. And then just a few days after that, the governor of the Bank of England comes to see him and says, I've got terrible news. I've got really, really, really bad news. The pound is collapsing once again. we are running out of money

Britain is staring into the abyss of bankruptcy and it seems that Jim Callahan's premiership is doomed before it has even properly begun what will Dominic's great hero do you can find out in the thrilling climax of this epic series and on that thrilling climax we will also be welcoming

onto the rest of history for the first time the sex pistols So Rest Is History Club members can hear that episode right now and to join them. Of course you know what we've got to do. Head to the Restis History.com. If not, you just have to wait. But we will be back with the Sex Pistols. Goodbye.

Goodbye. We have an absolutely thrilling announcement to make. Yes, Tom. This is probably the most thrilling announcement we've ever made on The Rest Is History because we have a very special bespoke Rest is History T-shirt available to celebrate our new series about Britain in the 1970s.

These were great years. Crazy scenes, of course, behind the door number 10. Britain had to go, I believe the technical term is cap in hand to the International Monetary Fund for a record bailout. And of course, Tony Benn was funding factories that made both car radiators and orange juice. And what you're probably thinking, Tom, is how can I get a T-shirt that somehow captures the same,

spirit of those tremendous years. So what we have done is to commission Graham Johnson, who is one of our beloved Athelstands, to come back with another stunning design. And this time, and this is so brilliant, must be the only T-shirt ever, to feature the heads of Edward Heath, Margaret Thatcher, Harold Wilson and James Callaghan. And if you're not British, I mean, What's wrong with you? This will be the most exclusive, the most exclusive t-shirt design ever. Imagine walking the streets of Peoria with your James Callahan T-shirt. Unmissible.

So Dominic, here's the question. How can people go about getting their hands on one of these unbelievable items? Just head to the rest is history.com and go to our merch page. And for our wonderful club members, do keep an eye out for this week's newsletter. which will include a special discount for friends for the show and an even more exciting discount for our ever-beloved Athelstands and you can use this code on all the rest is history merch. Now, if you're not yet a member of the show,

you're probably thinking, I really want one of these t-shirts, I'm desperate for a discount, I'm missing out on all the unbelievable benefits that you get through club membership. Well, here's the thing. Now is the time to sign up. You can go.

just as Britain went to the International Monetary Fund. Cap in hand. Cap in hand. Go to the restishistory.com to sign up and you will get, I mean, even more largesse than Britain got from the IMF in 1976. It'll be absolutely brilliant. So please go to the restishistory.com and sign up. You'll get all the discounts. You can buy your merch.

You can get all the tremendous benefits that you get from being a member and you'll never ever be happier and you will never ever regret it.