“The power structure in Britain is changing. Authority is no longer obeyed for its own sake. There are severe limits on what government can do, so the way to win the battle against inflation and unemployment is not to try to dragoon the country. If we do we shall fail. We must secure its consent. We are playing for high stakes. In a real sense, adherence to the social contract puts on trial whether our society has the will and determination to solve its problems by democratic means.”

— James Callaghan

Speech to the Labour Party Conference in London (27 November 1974), quoted in The Times (28 November 1974), p. 6
Foreign Secretary

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James Callaghan 37

Prime Minister of the United Kingdom; 1976-1979 1912–2005

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“You know, as I do, that we face two deep-seated problems, inflation and unemployment. Both of them are still too high. … I have to emphasize to you that if we fail to bring down inflation, we shall never succeed in overcoming unemployment. We cannot have a prosperous industry in this country if we are unable to sell our goods overseas. No one owes Britain a living, and may I say to you quite bluntly that despite the measures of the last 12 months, we are still not earning the standard of living we are enjoying. We are only keeping up our standards by borrowing, and this cannot go on indefinitely. There is no soft option. I do not promise you any real easement for some time to come. There can be no lasting improvement in your own living standards until we can achieve it without going deeper and deeper into debt as a nation.”

James Callaghan (1912–2005) Prime Minister of the United Kingdom; 1976-1979

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