View source for James Callaghan

{{short description|Prime Minister of the United Kingdom from 1976 to 1979}}
{{redirect|Jim Callaghan||James Callaghan (disambiguation)}}
{{Use British English|date=November 2017}}
{{Use dmy dates|date=March 2025}}
{{Infobox officeholder
| honorific_prefix = [[The Right Honourable]]
| name             = The Lord Callaghan of Cardiff
| honorific_suffix = {{post-nominals|country=GBR|size=100%|KG|PC}}
| image            = James Callaghan (1975).jpg
| alt              = Callaghan, 63, in a monochrome photograph
| caption          = Callaghan in 1975
| office           = [[Prime Minister of the United Kingdom]]
| monarch          = [[Elizabeth II]]
| term_start       = 5 April 1976
| term_end         = 4 May 1979
| predecessor      = [[Harold Wilson]]
| successor        = [[Margaret Thatcher]]
{{Collapsed infobox section begin|last = yes|Senior political offices
| titlestyle       = border:1px dashed lightgrey;}}{{Infobox officeholder
| embed            = yes
| office1          = [[Leader of the Opposition (United Kingdom)|Leader of the Opposition]]
| monarch1         = Elizabeth II
| primeminister1   = Margaret Thatcher
| term_start1      = 4 May 1979
| term_end1        = 10 November 1980
| predecessor1     = Margaret Thatcher
| successor1       = [[Michael Foot]]
| office2          = [[Leader of the Labour Party (UK)|Leader of the Labour Party]]
| deputy2          = Michael Foot
| term_start2      = 5 April 1976
| term_end2        = 10 November 1980
| predecessor2     = Harold Wilson
| successor2       = Michael Foot
{{Collapsed infobox section end}}}}
{{Collapsed infobox section begin|last=yes|Ministerial offices
|titlestyle = border:1px dashed lightgrey;}}{{Infobox officeholder |embed=yes
| office3          = [[Foreign Secretary (United Kingdom)|Foreign Secretary]]
| primeminister3   = Harold Wilson
| term_start3      = 5 March 1974
| term_end3        = 8 April 1976
| predecessor3     = [[Alec Douglas-Home]]
| successor3       = [[Anthony Crosland]]
| office4          = [[Home Secretary]]
| primeminister4   = Harold Wilson
| term_start4      = 30 November 1967
| term_end4        = 19 June 1970
| predecessor4     = [[Roy Jenkins]]
| successor4       = [[Reginald Maudling]]
| office5          = [[Chancellor of the Exchequer]]
| primeminister5   = Harold Wilson
| term_start5      = 16 October 1964
| term_end5        = 30 November 1967
| predecessor5     = Reginald Maudling
| successor5       = Roy Jenkins
{{Collapsed infobox section end}}}}
{{collapsed infobox section begin
| cont             = yes
| [[Shadow cabinet]] offices
| titlestyle       = border:1px dashed lightgrey}}
{{Infobox officeholder
| embed            = yes
| title            = [[Shadow Secretary of State]]
| subterm1         = 1970–1971
| suboffice1       = [[Shadow Home Secretary|Home Department]]
| subterm2         = 1971–1972
| suboffice2       = [[Shadow Secretary of State for Employment|Employment]]
| subterm3         = 1972–1974
| suboffice3       = [[Shadow Foreign Secretary|Foreign and Commonwealth&nbsp;Affairs]]
| office4          = [[Shadow Chancellor of the Exchequer]]
| leader4          = {{plainlist|
* [[Hugh Gaitskell]]
* [[George Brown (British Labour politician)|George Brown]] (acting)
* Harold Wilson
}}
| term_start4      = 2 November 1961
| term_end4        = 16 October 1964
| predecessor4     = Harold Wilson
| successor4       = Reginald Maudling
{{collapsed infobox section end}}
}}
{{collapsed infobox section begin
| cont             = yes
| Junior ministerial offices
| titlestyle       = border:1px dashed lightgrey}}
{{Infobox officeholder
| embed            = yes
| title            = [[Parliamentary Under-Secretary of State]]
| subterm          = 1947–1950
| suboffice        = [[Parliamentary Secretary to the Ministry of Transport|Ministry of Transport]]
| subterm1         = 1950–1951
| suboffice1       = [[Parliamentary and Financial Secretary to the Admiralty|Admiralty]]
{{collapsed infobox section end}}
}}
{{collapsed infobox section begin
| last             = yes
| Parliamentary offices
| titlestyle       = border:1px dashed lightgrey}}
{{Infobox officeholder
| embed            = yes
| office           = Member of the [[House of Lords]]
| status           = [[Lord Temporal]]
| term_label       = [[Life peer]]age
| term_start       = 5 November 1987
| term_end         = 26 March 2005
| office1          = [[Father of the House (United Kingdom)|Father of the House of Commons]]
| term_start1      = 9 June 1983
| term_end1        = 18 May 1987
| predecessor1     = [[John Parker (Labour politician)|John Parker]]
| successor1       = [[Bernard Braine]]
{{collapsed infobox section end}}
}}
| parliament12      = United Kingdom
| constituency_MP12 = [[Cardiff South and Penarth (UK Parliament constituency)|Cardiff South and Penarth]]
| prior_term12      = {{cslist|[[Cardiff South East]] (1950–1983)|[[Cardiff South (UK Parliament constituency)|Cardiff South]] (1945–1950)}}
| term_start12      = 5 July 1945
| term_end12        = 18 May 1987
| predecessor12     = [[Arthur Evans (politician)|Arthur Evans]]
| successor12       = [[Alun Michael]]
| birth_name       = Leonard James Callaghan
| birth_date       = {{birth date|1912|3|27|df=y}}
| birth_place      = [[Portsmouth]], Hampshire, England
| death_date       = {{death date and age|2005|3|26|1912|3|27|df=y}}
| death_place      = [[Burgess Hill]], West Sussex, England<ref name="ODNBCallaghan">{{Cite ODNB|id=94837|title=Callaghan, Leonard James [Jim], Baron Callaghan of Cardiff|last=Hattersley|first=Roy|author-link=Roy Hattersley|year=2013}}</ref>
| party            = [[Labour Party (UK)|Labour]]
| spouse           = {{marriage|[[Audrey Moulton]]|28 July 1938|15 March 2005|reason=died}}
| children         = 3, including [[Margaret Jay]]
| education        = [[Mayfield School, Portsmouth|Portsmouth Northern Secondary School]]
| signature        = Signature of James Callaghan.png
| allegiance       = <!-- United Kingdom -->
| branch           = [[Royal Navy]]
| rank             = [[Sub-lieutenant]]
| battles          = Second World War
}}
{{James Callaghan sidebar}}
'''Leonard James Callaghan, Baron Callaghan of Cardiff''' ({{IPAc-en|ˈ|k|æ|l|ə|h|æ|n|audio=En-Leonard-James-Callaghan.oga}} {{respell|KAL|ə|han}}; 27 March 1912{{spaced ndash}}26 March 2005), was a British statesman<ref>{{cite web |title=James Callaghan |url=https://www.westminster-abbey.org/abbey-commemorations/commemorations/james-callaghan}}</ref> and [[Labour Party (UK)|Labour Party]] politician who served as [[Prime Minister of the United Kingdom]] from 1976 to 1979 and [[Leader of the Labour Party (UK)|Leader of the Labour Party]] from 1976 to 1980. Callaghan is the only person to have held all four [[Great Offices of State]], having also served as [[Chancellor of the Exchequer]] from 1964 to 1967, [[Home Secretary]] from 1967 to 1970 and [[Foreign Secretary (United Kingdom)|Foreign Secretary]] from 1974 to 1976. He was a [[Member of Parliament (United Kingdom)|Member of Parliament]] (MP) from 1945 to 1987.

Born into a working-class family in [[Portsmouth]], Callaghan left school early and began his career as a tax inspector, before becoming a trade union official in the 1930s. He served as a [[Lieutenant (navy)|lieutenant]] in the [[Royal Navy]] during the Second World War. He was elected to [[Parliament of the United Kingdom|Parliament]] at the [[1945 United Kingdom general election|1945 election]], and was then regarded as being on the left wing of the Labour Party. He was appointed to the [[Attlee government]] as a [[parliamentary secretary]] in 1947, and began to move increasingly towards the right wing of the Labour Party, while maintaining his reputation as a "Keeper of the Cloth Cap"{{spaced ndash}}that is, seen as maintaining close ties between Labour and the trade unions. Following Labour's defeat at the [[1951 United Kingdom general election|1951 election]], Callaghan increasingly became regarded as a leader of the right wing of the Labour Party, and stood for the positions of deputy leader in [[1960 Labour Party deputy leadership election|1960]] and for leader in [[1963 Labour Party leadership election (UK)|1963]], but was defeated by [[George Brown (British Labour politician)|George Brown]] for the former and [[Harold Wilson]] for the latter.

Following Labour's victory at the [[1964 United Kingdom general election|1964 election]], Wilson appointed Callaghan as chancellor of the exchequer; this appointment coincided with a turbulent period for the British economy, during which Callaghan had to tackle both a chronic [[balance of payments]] deficit and various [[speculative attack]]s on the [[pound sterling]], with its exchange rate to other currencies being fixed by the [[Bretton Woods system]]. On 18 November 1967, having initially denied that it would do so, the Government [[1967 sterling devaluation|devalued the pound sterling]]. In the wake of the decision, Wilson moved Callaghan to the role of home secretary. During this time, Callaghan was responsible for overseeing the [[Operation Banner|operations of the British Army]] to support the [[Royal Ulster Constabulary|police in Northern Ireland]], following a request from the [[O'Neill ministry|Northern Ireland government]]. Callaghan remained in the [[Second Shadow Cabinet of Harold Wilson|Shadow Cabinet]] during Labour's period in Opposition from 1970 to 1974; upon Labour's victory at the [[February 1974 United Kingdom general election|1974 election]], Wilson appointed Callaghan as foreign secretary. Callaghan was responsible for renegotiating the terms of Britain's membership of the [[European Communities]] (EC), and strongly supported the successful "Yes" vote campaign in the [[1975 United Kingdom European Communities membership referendum|1975 referendum]], which confirmed the UK's membership of the EC.

When Wilson suddenly announced his retirement in March 1976, Callaghan [[1976 Labour Party leadership election|defeated five other candidates]] to be elected Leader of the Labour Party; he was appointed prime minister on 5 April 1976. Labour had won a narrow majority in the House of Commons at the October 1974 election but, through by-election defeats, had lost this by the time Callaghan became prime minister; and several by-election defeats and defections in his early months of power forced him to strike a [[confidence and supply agreement]] with the [[Liberal Party (UK)|Liberal Party]]. This had ended by the time of significant industrial disputes and widespread strikes in the 1978–79 "[[Winter of Discontent]]" – which, followed by the defeat of the [[1979 Scottish devolution referendum|referendum on devolution for Scotland]], led to minor parties joining with the [[Conservative Party (UK)|Conservative Party]] to pass a [[1979 vote of no confidence in the Callaghan ministry|motion of no-confidence]] in Callaghan on 28 March 1979. Although remaining personally popular in opinion polls, he led Labour to defeat at the [[1979 United Kingdom general election|1979 election]] and was replaced by Conservative [[Margaret Thatcher]]. The 1979 defeat marked the beginning of 18 years in opposition for the Labour Party, the longest in its history.

Callaghan served as Labour leader and [[Leader of the Opposition (United Kingdom)|Leader of the Opposition]] until November 1980. He attempted to reform the process by which Labour elected its leader. After leaving the leadership he returned to the backbenches, and between 1983 and 1987 was [[Father of the House (United Kingdom)|Father of the House of Commons]]. On retiring from the Commons in 1987, he was elevated to the [[House of Lords]] as Baron Callaghan of Cardiff. He died in 2005 at the age of 92, and remains to date the UK's [[List of prime ministers of the United Kingdom by age|longest-lived former prime minister]].<ref name=":0">{{Cite web |last=Sherrin |first=Richard |date=22 September 2021 |title=10 Facts About James Callaghan |url=https://www.historyhit.com/facts-about-james-callaghan/?utm_source=chatgpt.com |access-date=25 January 2025 |website=History Hit |language=en-GB |quote=Callaghan went on to become the longest living Prime Minister in history. He died on 26 March 2005, aged 92.}}</ref> He is the most recent prime minister to have served in the [[British Armed Forces]] and the only prime minister to have served in the [[Royal Navy]].<ref name= "UK Parliament">{{Cite web |title=James Callaghan, Lord Callaghan of Cardiff |url=https://www.parliament.uk/about/living-heritage/transformingsociety/private-lives/yourcountry/collections/collections-second-world-war/parliamentarians-and-people/james-callaghan/?utm_source=chatgpt.com |access-date=25 January 2025 |website=www.parliament.uk |language=en |quote=When he became Prime Minister in 1976, he became the last armed forces veteran to enter that office and the only Prime Minister who served in the Royal Navy.}}</ref><ref>{{Cite news |date=27 March 2005 |title=Kindness and candour |url=https://www.theguardian.com/politics/2005/mar/28/labour.obituaries1?utm_source=chatgpt.com |access-date=25 January 2025 |work=The Guardian |language=en-GB |issn=0261-3077 |quote=He saw war service, the last British prime minister to do so, volunteering for the navy, in which his father had served.}}</ref><ref>{{cite web |last=Stewart |first=Graham |date=25 November 2020 |title=Britain's last conservative prime minister |url=https://thecritic.co.uk/issues/december-2020/britains-last-conservative-prime-minister/?utm_source=chatgpt.com |access-date=25 January 2025 |website=The Critic Magazine |language=en-GB |quote=He was the last prime minister of Great Britain to have served in her armed forces.}}</ref>

==Early life and career, 1912–1945==
Leonard James Callaghan was born at 38 Funtington Road, [[Copnor]], [[Portsmouth]], England, on 27 March 1912. He took his middle name from his father, James (1877–1921), the son of an [[Irish Catholic]] father (who had fled to England during the [[Great Irish Famine]]) and a Jewish mother. Callaghan's father ran away from home in the 1890s to join the [[Royal Navy]]; as he was a year too young to enlist, he gave a false date of birth and changed his surname from Garogher to Callaghan so that his true identity could not be traced. He rose to the rate of [[Chief Petty Officer]].{{sfn|Conroy|2006|pp=1–2}}<ref>[[Kenneth O. Morgan]], ''Callaghan: A Life'', 1997, p. 5: "His father's mother was Elizabeth Bernstein, from Sheffield; he was, therefore, a quarter Jewish as well."</ref>

His mother was Charlotte Callaghan (''née'' Cundy, 1879–1961) an English [[Baptist]]. As the Catholic Church at the time refused to marry Catholics to members of other denominations, James Callaghan senior abandoned Catholicism and married Charlotte in a Baptist chapel. Their first child was Dorothy Gertrude Callaghan (1904–82).{{sfn|Conroy|2006|pp=1–2}}

James Callaghan senior served in the [[First World War]] on board the battleship [[HMS Agincourt (1913)|HMS ''Agincourt'']]. After he was demobbed in 1919, he joined the [[Her Majesty's Coastguard|Coastguard]] and the family moved to the town of [[Brixham]] in Devon, but he died only two years later of a heart attack in 1921 at the age of 44, leaving the family without an income and forced to rely on charity to survive. Their financial situation was improved in 1924 when the [[first Labour government]] was elected, and introduced changes allowing Mrs Callaghan to be granted a widow's pension of ten [[Shilling (British coin)|shillings]] a week, on the basis that her husband's death was partly due to his war service.{{sfn|Conroy|2006|pp=2–4}}<ref name="GuardianOB">{{cite news |last=McKie |first=David |author-link=David McKie |title=Obituary: Lord Callaghan |url=https://www.theguardian.com/news/2005/mar/28/guardianobituaries.politics |newspaper=The Guardian |access-date=26 September 2018 |date=28 March 2005 |archive-date=4 April 2020 |archive-url=https://web.archive.org/web/20200404004039/https://www.theguardian.com/news/2005/mar/28/guardianobituaries.politics |url-status=live}}</ref><ref name="TelOb">{{cite news |title=Obituary: Lord Callaghan of Cardiff |url=https://www.telegraph.co.uk/news/obituaries/politics-obituaries/1486556/Lord-Callaghan-of-Cardiff.html |newspaper=The Telegraph |access-date=26 September 2018 |date=28 March 2005 |archive-date=3 September 2018 |archive-url=https://web.archive.org/web/20180903082058/https://www.telegraph.co.uk/news/obituaries/politics-obituaries/1486556/Lord-Callaghan-of-Cardiff.html |url-status=live}}</ref>

===Early career===
In his early years, Callaghan was known by his first name Leonard. When he entered politics in 1945 he decided to be known by his middle name James, and from then on he was referred to as James or Jim.{{sfn|Conroy|2006|p=3}} He attended [[Mayfield School, Portsmouth|Portsmouth Northern Secondary School]]. He gained the Senior Oxford Certificate in 1929, but could not afford entrance to university and instead sat the Civil Service entrance exam.{{sfn|Conroy|2006|pp=3–5}} At the age of 17, Callaghan left to work as a clerk for the [[Inland Revenue]] at [[Maidstone]] in Kent. While working at the Inland Revenue, Callaghan joined the Maidstone branch of the Labour Party and the Association of the Officers of Taxes (AOT), a trade union for this branch of the civil service; within a year of joining he became the office secretary of the union. In 1932 he passed a Civil Service exam that enabled him to become a senior tax officer, and in the same year he became the Kent branch secretary of the AOT. The following year he was elected to the AOT's national executive council. In 1934, he was transferred to Inland Revenue offices in London. Following a merger of unions in 1936, Callaghan was appointed a full-time union official and to the post of assistant secretary of the [[Inland Revenue Staff Federation]] (IRSF), and resigned from his Civil Service duties.{{sfn|Conroy|2006|pp=5–6}}

During his time working in the Inland Revenue in the early 1930s, Callaghan met his future wife [[Audrey Moulton]], and they were married in July 1938 at Maidstone.{{sfn|Conroy|2006|pp=6–8}}

His union position at the IRSF brought Callaghan into contact with [[Harold Laski]], the Chairman of the Labour Party's [[National Executive Committee of the Labour Party|National Executive Committee]] and an academic at the [[London School of Economics]]. Laski encouraged him to stand for Parliament, although later he requested several times that Callaghan study and lecture at the LSE.

===War service===
In 1940, following the outbreak of the [[Second World War]], Callaghan applied to join the Royal Navy, but was initially turned down on the basis that a trade union official was deemed to be a [[reserved occupation]]. He was finally allowed to join the [[Royal Navy Volunteer Reserve]] as an Ordinary Seaman in 1942. While he trained for his promotion, his medical examination revealed that he was suffering from [[tuberculosis]], so he was admitted to the [[Royal Naval Hospital Haslar]] in [[Gosport]] near Portsmouth. After he recovered, he was discharged and assigned to duties with the [[British Admiralty|Admiralty]] in [[Whitehall]]. He was assigned to the Japanese section, and wrote a service manual for the Royal Navy ''The Enemy: Japan''. He then served in the [[East Indies Fleet]] on board the [[escort carrier]] [[HMS Activity (D94)|HMS ''Activity'']], and was promoted to the rank of [[sub-lieutenant]] in April 1944.{{sfn|Conroy|2006|pp=9–11}}<ref>{{cite web |author=J.N. Houterman |url=http://www.unithistories.com/officers/RNVR_officersC.html |title=Royal Naval Volunteer Reserve (RNVR) Officers 1939–1945 |publisher=Unithistories.com |access-date=30 April 2010 |archive-date=26 December 2017 |archive-url=https://web.archive.org/web/20171226213626/http://www.unithistories.com/officers/RNVR_officersC.html |url-status=live }}</ref> As of 2025, Callaghan remains the last British prime minister to be an armed forces veteran and the only one ever to have served in the Royal Navy.<ref name= "UK Parliament"/>

While on leave from the Navy, Callaghan was selected as a Parliamentary candidate for [[Cardiff South (UK Parliament constituency)|Cardiff South]]: he narrowly won the local party ballot with twelve votes, against the next highest candidate [[George Thomas, 1st Viscount Tonypandy|George Thomas]], who received eleven. Callaghan had been encouraged to put his name forward for the Cardiff South seat by his friend Dai Kneath, a member of the IRSF National executive from [[Swansea]], who was in turn an associate and friend of the local Labour Party secretary, Bill Headon.{{sfn|Conroy|2006|p=11}}

By 1945, he was serving on {{HMS|Queen Elizabeth|1913|6}} in the Indian Ocean. After [[VE Day]], he returned, along with other prospective candidates, to the United Kingdom to stand in the general election.{{sfn|Conroy|2006|p=12}}

==Attlee government, 1945–1951==
===Member of Parliament===
The Labour Party won the overdue general election in a landslide victory on 26 July 1945, bringing [[Clement Attlee]] to power, in charge of the first-ever majority Labour government. Callaghan won his [[Cardiff South (UK Parliament constituency)|Cardiff South]] seat at the [[1945 United Kingdom general election|1945 general election]] (and would hold a Cardiff-area seat continuously until his retirement in 1987). He defeated the sitting [[Conservative Party (UK)|Conservative]] MP, [[Arthur Evans (politician)|Sir Arthur Evans]], by 17,489 votes to 11,545. He campaigned on such issues as the rapid demobilisation of the armed forces and for a new housing construction programme.{{sfn|Conroy|2006|p=13}} He stood on the left wing of the party, and was a vocal critic of the United States in 1945, joining 22 other rebels in voting against accepting the [[Anglo-American loan]].<ref>Andrew Davies, '' To Build A New Jerusalem: Labour Movement from the 1890s to the 1990s'' (1992), pp. 232–33.</ref> Callaghan did not join the [[Keep Left (pamphlet)|Keep Left]] group of left-wing Labour MPs, but he did sign a letter in 1947 with 20 other MPs from the group calling for a 'socialist foreign policy' which would create an alternative to the capitalism of the United States and the totalitarianism of the [[USSR]].{{sfn|Conroy|2006|pp=14–25}}
===Junior minister===
[[File:James Callaghan by Elliott & Fry (cropped).jpg|thumb|upright|Callaghan in 1947]]
In October 1947, at the age of 35, Callaghan got his first junior ministerial job, when he was appointed [[Parliamentary Secretary to the Ministry of Transport]] under [[Alfred Barnes (Labour politician)|Alfred Barnes]]. Callaghan was given responsibility for improving road safety, and most notably he persuaded the government to introduce [[zebra crossing]]s, and to extend the use of [[Cat's eye (road)|cat's eyes]] on trunk roads. Callaghan did not oppose the government's use of emergency powers to break dockers' strikes in both 1948 and 1949, however, he sympathised with the feelings of ordinary dockers and wrote to Attlee to protest over how the Dock Labour Scheme was operated.{{sfn|Conroy|2006|pp=14–25}}

In February 1950 he was appointed as [[Parliamentary and Financial Secretary to the Admiralty]]. He was a delegate to the [[Council of Europe]], where he supported plans for economic co-operation but resisted plans for a European army. When the [[Korean War]] broke out in 1950, Callaghan was given responsibility for deciding how the money allocated to the [[Royal Navy]] for rearmament was spent.{{sfn|Conroy|2006|pp=14–25}}

==In opposition, 1951–1964==
After Labour lost power in the [[1951 United Kingdom general election|1951 general election]], Callaghan, who was popular with Labour MPs, was elected to the Shadow Cabinet, and he would serve on the party's front bench for the next 29 years, either in opposition or in government. He was now associated with the [[Gaitskellite]] wing of the party on the Labour right, although he avoided joining any faction.{{sfn|Conroy|2006|pp=24–31}} He served as the Labour spokesman on Transport (1951–53); Fuel and Power (1953–55); Colonial Affairs (1956–61) and Shadow Chancellor (1961–64). He ran unsuccessfully for the Deputy Leadership of the party [[1960 Labour Party deputy leadership election|in 1960]]. When [[Hugh Gaitskell]] died in January 1963, Callaghan ran to succeed him, but came third in the [[1963 Labour Party leadership election (UK)|leadership contest]], which was won by [[Harold Wilson]].<ref name="DWB">{{cite web |title=CALLAGHAN, LEONARD JAMES, Lord Callaghan of Cardiff (1912–2005), politician |url=https://biography.wales/article/s14-CALL-JAM-1912#?c=0&m=0&s=0&cv=88&manifest=https%3A%2F%2Fdamsssl.llgc.org.uk%2Fiiif%2F2.0%2F1559160%2Fmanifest.json&xywh=257%2C1766%2C624%2C539 |publisher=Dictionary of Welsh Biography |access-date=8 November 2024}}</ref>

==Wilson government, 1964–1970==

===Chancellor of the Exchequer, 1964–1967===
In October 1964, [[Conservative Party (UK)|Conservative]] Prime Minister [[Alec Douglas-Home]] (who had only been in power for twelve months since the resignation of [[Harold Macmillan]]) was forced to call a [[1964 United Kingdom general election|general election]], the parliament being about to expire. Labour won a narrow majority, gaining 56 seats for a total of 317 to the Conservatives' 304. The new Labour government under [[Harold Wilson]] immediately faced economic problems; Wilson acted within his first hours to appoint Callaghan as the new [[chancellor of the Exchequer]]. Callaghan's time as chancellor was characterised by an ultimately doomed effort to stave off devaluation of the pound. The previous chancellor, [[Reginald Maudling]], had initiated fiscally expansionary measures that had helped create a pre-election economic boom. By greatly increasing domestic demand, this had caused imports to grow much faster than exports; thus, when Labour entered government it faced a [[balance of payments]] deficit of £800,000,000 ({{Inflation|UK|800000000|1964|r=-4|fmt=eq|cursign=£}}),{{Inflation/fn|UK|df=y}} and sterling came under immediate [[speculative attack]]. Both Wilson and Callaghan took a strong stance against [[devaluation]] of sterling, partly due to the perception that the devaluation carried out by the previous Labour government in 1949 had contributed to that government's downfall. The alternative to devaluation, however, was a series of austerity measures designed to reduce demand in the economy in order to reduce imports, and to stabilise the balance of payments and the value of sterling.{{sfn|Conroy|2006|pp=33–38}}

[[File:Groep van tien Ministers van Financien bijeen in Den Haag , Minister Vondeling (, Bestanddeelnr 919-3915.jpg|left|thumb|Callaghan (second left) with [[finance minister]]s in [[The Hague]], 1966]]

Just ten days after taking up his post, Callaghan immediately introduced a 15% surcharge on imports, with the exception of foodstuffs and raw materials. This measure was intended to tackle the balance of payments deficit; however, it caused an uproar amongst Britain's international trading partners. The outcry was so intense that it caused the government to announce that the surcharge was a temporary measure. Callaghan later admitted in his autobiography that he could have handled the matter better, and in his haste to tackle the balance of payments problem, had failed to consult foreign governments.{{sfn|Conroy|2006|pp=33–38}}

On 11 November, Callaghan gave his first budget and announced increases in income tax, petrol tax and the introduction of a new [[capital gains tax]], actions which most economists deemed necessary to take the heat out of the balance and sterling deficit. In line with Labour's manifesto commitments, the budget also contained social measures to increase the state pension and the widows pension; measures which were disliked by the City and speculators, causing a run on the pound. On 23 November, it was decided to increase the bank rate from 2% to 7%, which generated a large amount of criticism. Handling the situation was made more difficult by the attitude of [[Rowland Baring, 3rd Earl of Cromer|Lord Cromer]], the governor of the [[Bank of England]], who argued against the fiscal policies of the new Labour government. When Callaghan and Wilson threatened to call a new general election, the governor soon raised a £3,000,000,000 loan to stabilise the reserves and the deficit.{{sfn|Conroy|2006|pp=33–38}}

His second budget came on 6 April 1965, in which he announced efforts to deflate the economy and reduce home import demand by £250,000,000. Shortly afterwards, the bank rate was reduced from 7% down to 6%. For a brief time, the economy and British financial market stabilised, allowing in June for Callaghan to visit the United States and to discuss the state of the British economy with President [[Lyndon B. Johnson]] and the [[International Monetary Fund]] (IMF).{{sfn|Conroy|2006|pp=33–38}}

In July the pound came under extreme pressure, and Callaghan was forced to create harsh temporary measures to demonstrate control of the economy. These included delaying all current government building projects and postponing new pension plans. The alternative was to devalue the pound (or, which would at first have amounted to the same thing, to allow it to float). Callaghan and Wilson, however, were again adamant that a devaluation of the pound would create new social and economic problems and continued to take a firm stance against it.{{sfn|Conroy|2006|pp=33–38}} The government continued to struggle both with the economy and with the slender majority which, by 1966, had been reduced to one. On 28 February, [[Harold Wilson]] formally announced an election for 31 March 1966. On 1 March, Callaghan gave a 'little budget' to the Commons and announced the historic decision that the UK would adopt [[decimal currency]]. (Not until 1971, under a Conservative government, did the United Kingdom move from the system of pounds, shillings and pence to a decimal system of 100 pence to the pound.) He also announced a short-term mortgage scheme which allowed low-wage earners to maintain mortgage schemes in the face of economic difficulties. Soon afterwards, at the [[1966 United Kingdom general election|1966 general election]], Labour won 363 seats compared to 252 seats against the Conservatives, giving the Labour government an increased majority of 97 seats.{{sfn|Conroy|2006|pp=39–40}}

Callaghan introduced his next Budget on 4 May. He had informed the house that he would bring a full Budget to the House when he made his 'little budget' speech prior to the election. The main point of his budget was the introduction of a [[Selective Employment Tax]], penalising the service industry and favouring the manufacturing industry.<ref>[http://www.nationalarchives.gov.uk/cabinetpapers/themes/reform-vat.htm The Cabinet Papers: Reform and VAT] {{webarchive |url=https://web.archive.org/web/20170209171930/http://nationalarchives.gov.uk/cabinetpapers/themes/reform-vat.htm |date=9 February 2017}}, from the National Archives</ref><ref>[https://web.archive.org/web/20090830044240/http://www.time.com/time/magazine/article/0,9171,836408,00.html Britain:Selective Torment], ''Time'', Friday, 16 September 1966</ref> Twelve days after the budget, the [[National Union of Seamen]] called a national strike and the problems facing Sterling were multiplied. Additional strikes caused the balance of payments deficit to increase. However, a £3,300,000,000 loan from Swiss banks was due by the end of the year. On 14 July the bank rate was increased again to seven percent, and on 20 July Callaghan announced a ten-point emergency package to deal with the crisis which included further tax rises and a six-month freeze on wage increases. By early 1967, the economy had begun to stabilise once again with the balance of payments moving into equilibrium, the bank rate was reduced to 6% in March and 5.5% in May.{{sfn|Conroy|2006|pp=40–45}}

It was under these conditions that Callaghan beat [[Michael Foot]] in a vote to become [[Treasurer of the Labour Party]].{{sfn|Conroy|2006|p=57}}

The economy was soon in turmoil again by June, with the [[Six-Day War]] in the Middle East. Several Arab countries, such as [[Kuwait]] and [[Iraq]], announced an oil embargo against Britain, accusing it of intervening on the Israeli side in the conflict, resulting in a rise in oil prices which had a disastrous effect on the balance of payments. Furthermore, the economy was hit in mid-September when a national dock strike lasted for eight weeks. The final straw, however, was an [[EEC]] report which suggested that the pound could not be sustained as a reserve currency and it was suggested again that the pound should be devalued. Callaghan responded by pointing out that, had it not been for the Middle East crisis, Britain would have been heading for a balance of payments surplus in 1967. However, rumours that devaluation was on the cards led to heavy selling of Sterling on world markets.{{sfn|Conroy|2006|pp=45–49}}

Callaghan now privately confided in Wilson that he doubted that the pound could be saved; this was reinforced after a meeting with [[Alec Cairncross]], head of the [[Government Economic Service]], who told him in no uncertain terms that the value of Sterling could not be maintained, and in his view it should be devalued as soon as possible. The IMF offered a contingency fund of $3 billion, but Wilson and Callaghan refused this because of several conditions attached, which they believed would allow the IMF to interfere with economic policy. On Wednesday 15 November, the historic decision was taken to commit the government to a 14.3% devaluation from the existing fixed [[exchange rate]] of $2.80 to the pound, to $2.40 to the pound.{{sfn|Conroy|2006|pp=45–49}}<ref>[http://www.bundesbank.de/Redaktion/DE/Downloads/Veroeffentlichungen/Monatsberichte/1967/1967_12_monatsbericht.pdf#page=108 Monatsbericht 12/1967, p. 104] {{webarchive |url=https://web.archive.org/web/20151218122532/http://www.bundesbank.de/Redaktion/DE/Downloads/Veroeffentlichungen/Monatsberichte/1967/1967_12_monatsbericht.pdf#page=108 |date=18 December 2015}} der [[Bundesbank]].</ref> They intended to announce the decision publicly on 18 November. However, in the run-up to the public announcement, Callaghan found himself in a tricky situation when answering questions in the House of Commons: one backbencher, [[Robert Sheldon]], tabled a motion concerning a rumour that Britain would be receiving a loan from banks. Callaghan did not wish to lie to the Commons, but at the same time going public about the devaluation decision before the 18th would be financially disastrous for the country. He answered the initial question by stating that he did not comment on rumours. However, a follow-up question was made by [[Stan Orme]] suggesting that devaluation was preferable to [[deflation]], which caused a major problem. Callaghan replied that he had "nothing to add or subtract from, anything I have said on previous occasions on the subject of devaluation"... Speculators seized on the fact that he had not denied there would be a devaluation and started selling Sterling. Over the next 24 hours, the flight from Sterling cost the country £1,500 million.{{sfn|Conroy|2006|pp=49–50}} The situation was a great political controversy at the time. As [[Denis Healey]] in his autobiography notes:{{blockquote|Nowadays exchange rates can swing to and fro continually by an amount greater than that, without attracting much attention outside the City columns of the newspapers. It may be difficult to understand how great a political humiliation this devaluation appeared at the time—above all to Wilson and his Chancellor, Jim Callaghan, who felt he must resign over it. Callaghan's personal distress was increased by a careless answer he gave to a backbencher's question two days before the formal devaluation. This cost Britain several hundred million pounds.<ref>{{cite web |url=https://spartacus-educational.com/PRcallaghanJ.htm |title=James Callaghan |publisher=Spartacus-Educational.com |date=19 July 1966 |access-date=27 February 2019 |url-status=live |archive-url=https://web.archive.org/web/20090709040934/http://www.spartacus.schoolnet.co.uk/PRcallaghanJ.htm |archive-date=9 July 2009 |df=dmy-all}}</ref>}}

Before the devaluation, Jim Callaghan had announced publicly to the Press and the [[House of Commons of the United Kingdom|House of Commons]] that he would not devalue, something he later said was necessary to maintain confidence in the pound and avoid creating jitters in the financial markets. Callaghan immediately offered his resignation as chancellor, and increasing political opposition forced Wilson to accept it. Wilson then moved [[Roy Jenkins]], the home secretary, to be chancellor; Callaghan became the new home secretary on 30 November 1967.{{sfn|Conroy|2006|p=52}}

===Home secretary, 1967–1970===
Callaghan was responsible for the [[Commonwealth Immigrants Act 1968]], a controversial piece of legislation prompted by Conservative assertions that an influx of [[Kenyan Asian]]s would soon inundate the country. It passed through the Commons in a week and placed entry controls on holders of British passports who had "no substantial connection" with Britain by setting up a new system. In his memoirs ''Time and Chance'', Callaghan wrote that introducing the Commonwealth Immigrants Bill had been an unwelcome task but that he did not regret it. He said the Asians had "discovered a loophole", and he told a BBC interviewer: "Public opinion in this country was extremely agitated, and the consideration that was in my mind was how we could preserve a proper sense of order in this country and, at the same time, do justice to these people{{snd}}I had to balance both considerations". An opponent of the Act, Conservative MP [[Ian Gilmour]], said that it was "brought in to keep the blacks out. If it had been the case that it was 5,000 white settlers who were coming in, the newspapers and politicians, Callaghan included, who were making all the fuss would have been quite pleased".<ref>Lattimer, Mark (22 January 1999), [https://www.newstatesman.com/when-labour-played-racist-card When Labour played the racist card] {{webarchive |url=https://web.archive.org/web/20150905192357/https://www.newstatesman.com/when-labour-played-racist-card |date=5 September 2015}}, ''[[New Statesman]]''.</ref>

Also significant was the passing of the [[Race Relations Act 1968|Race Relations Act]] in the same year, making it illegal to refuse employment, housing or education on the basis of ethnic background. The Act extended the powers of the [[Race Relations Board]] at the time, to deal with complaints of discrimination and unfair attitudes. It also set up a new supervisory body, the Community Relations Commission, to promote "harmonious community relations".<ref>{{cite news |url=https://news.bbc.co.uk/onthisday/hi/dates/stories/november/26/newsid_3220000/3220635.stm |title=BBC ON THIS DAY &#124; 1968: Race discrimination law tightened |publisher=BBC News |date=26 November 1983 |access-date=30 April 2010 |archive-date=6 December 2017 |archive-url=https://web.archive.org/web/20171206192711/http://news.bbc.co.uk/onthisday/hi/dates/stories/november/26/newsid_3220000/3220635.stm |url-status=live}}</ref> Presenting the Bill to Parliament, Callaghan said: "The House has rarely faced an issue of greater social significance for our country and our children."

Another significant development was the [[Representation of the People Act 1969]], which made Britain the first major democratic nation to lower the [[voting age]] from 21 to 18. This came into effect in time for the [[1970 United Kingdom general election|1970 general election]].<ref>{{cite web |last1=Bingham |first1=Adrian |title='The last milestone' on the journey to full adult suffrage? 50 years of debates about the voting age |url=https://historyandpolicy.org/policy-papers/papers/the-last-milestone-on-the-journey-to-full-adult-suffrage/ |access-date=20 July 2025}}</ref> 
====Northern Ireland====
[[File:James Callaghan and James Chichester-Clark 1970.jpg|thumb|Callaghan in 1970 (left), with [[Prime Minister of Northern Ireland]] [[James Chichester-Clark]]]]
Callaghan's tenure as home secretary was marked by the emerging conflict in [[Northern Ireland]]: Like all British governments since the [[partition of Ireland]] in 1921, Harold Wilson's Labour government preferred not to intervene in the affairs of Northern Ireland. However in August 1969, [[1969 Northern Ireland riots|escalating sectarian violence]] between the province's [[Ulster Protestants|Protestant]] and [[Irish Catholics|Catholic]] communities, gave the [[Government of Northern Ireland (1921–1972)|Government of Northern Ireland]] little choice but to ask the British government to intervene directly and send in troops, and it was as home secretary that Callaghan took the decision to [[Operation Banner|deploy British Army troops]] in the province. In return Callaghan and Wilson demanded that various reforms be implemented in the province, such as the phasing out of the Protestant paramilitary [[B-Specials]], and their replacement by the [[Ulster Defence Regiment]], which was open to Catholic recruits, and various reforms to reduce discrimination against Catholics, such as reforms to the voting franchise, and a reform of local government boundaries and housing allocations. Although the troops were initially welcomed by Northern Ireland's Catholics, by early 1970 this had soured, and the [[Provisional IRA]] emerged, and embarked on what became a decades long violent campaign during what became known as [[The Troubles]].{{sfn|Conroy|2006|pp=64–71}}

====In Place of Strife====
In 1969, Callaghan, a strong defender of the Labour–trade union link, led the successful opposition in a divided cabinet to [[Barbara Castle]]'s [[White Paper]] "[[In Place of Strife]]" which sought to modify trade union law. Amongst its numerous proposals were plans to force unions to call a ballot before a strike was held and the establishment of an Industrial Board to enforce settlements in industrial disputes.{{sfn|Conroy|2006|pp=59–64}} Ten years later, Callaghan's actions in opposing trade union reform would come back to haunt him during the [[Winter of Discontent]].<ref name="Davies336">{{cite book |last1=Davies |first1=A. J. |title=To Build a New Jerusalem |date=1996 |page=336|publisher=Abacus |isbn=0-349-10809-9}}</ref>

==In opposition, 1970–1974==
Wilson's government went on to be unexpectedly defeated by [[Edward Heath]] at the [[1970 United Kingdom general election|1970 general election]].

Callaghan initially became Shadow Home Secretary, later becoming [[Shadow Foreign Secretary]]. In 1973, after an approach from the Conservative Chancellor [[Anthony Barber]] he agreed to have his name go forward for the job of Managing Director of the [[International Monetary Fund]] (IMF), however, this was vetoed by the French government.{{sfn|Conroy|2006|pp=73–74}}

==Wilson government, 1974–1976==
===Foreign secretary, 1974–1976===
[[File:James Callaghan and Max van der Stoel (1975).jpg|thumb|Callaghan and Dutch foreign minister [[Max van der Stoel]] in 1975]]

When Wilson won the next [[February 1974 United Kingdom general election|general election]] and returned as prime minister in March 1974, he appointed Callaghan as [[Foreign Secretary (United Kingdom)|Foreign Secretary]].

In July 1974 a crisis erupted in [[Cyprus]], when there was [[1974 Cypriot coup d'état|a coup d'etat]] on the island, sponsored by the [[Greek junta|Greek military junta]], which installed the pro-Greek puppet leader [[Nikos Sampson]] as the President, who threatened to unify the island with Greece. Turkey responded by [[Turkish invasion of Cyprus|launching an invasion]] of the island to protect the island's Turkish community. Britain was involved in the dispute as a signatory of the [[Treaty of Guarantee (1960)|1960 Treaty of Guarantee]]. Britain sent troops alongside the UN to prevent further advancement of Turkish troops. Callaghan led diplomatic efforts to secure a ceasefire, and called on both sides to attend tripartite meetings on the crisis with Britain. On 22 July a ceasefire was called. The tripartite talks got underway, and in August an agreement was reached to make the ceasefire permanent, with a [[United Nations Buffer Zone in Cyprus|buffer zone]] patrolled by the UN between the Greek and Turkish controlled parts of the island.{{sfn|Conroy|2006|pp=77–86}} As of 2025 the island [[Cyprus problem|remains partitioned]].

Labour had entered office with the policy of renegotiating the terms of the United Kingdom's membership of the [[European Community]], and then holding a referendum on remaining in the EC on these terms. Callaghan was put in charge of these negotiations. When the talks concluded, Callaghan led [[Labour government 1974–79|the Cabinet]] in declaring the new terms acceptable and he supported a successful "Yes" vote in the [[1975 United Kingdom European Communities membership referendum|1975 European Community referendum]]. Callaghan had formerly been on the [[Euroscepticism|eurosceptic]] wing of the Labour Party, however, during the negotiations and referendum he converted to be a pro-European.{{sfn|Conroy|2006|pp=74–86}} He was awarded the [[Freedom of the City]] of [[Cardiff]] on 16 March 1975.<ref>{{cite web |title=HONORARY FREEMAN OF THE CITY AND COUNTY OF CARDIFF |url=https://www.cardiff.gov.uk/ENG/Your-Council/Lord-Mayor/honorary-freedom/Documents/freedom%20roll%20list%20June%202014.pdf |website=Cardiff City Council |access-date=1 November 2021 |archive-date=27 July 2020 |archive-url=https://web.archive.org/web/20200727071227/https://www.cardiff.gov.uk/ENG/Your-Council/Lord-Mayor/honorary-freedom/Documents/freedom%20roll%20list%20June%202014.pdf |url-status=live }}</ref>

In 1975, Callaghan flew out to [[Uganda]] in order to bring home the British lecturer [[Denis Hills]], who had been sentenced to death by Uganda's dictator [[Idi Amin]] for writing a book critical of him. After an appeal for clemency by both the [[Elizabeth II|Queen]] and the prime minister, Amin agreed to release Hills on the condition that Callaghan appeared in person to take him back to the UK.{{sfn|Conroy|2006|pp=77–86}}

Also in 1975, [[Argentina]] made territorial claims on the [[Falkland Islands]]. In response, Callaghan sent [[HMS Endurance (1967)|HMS ''Endurance'']] to the islands, in order to send a message to Argentina that Britain would defend them. Seven years later, in 1982, Callaghan criticised the government of [[Margaret Thatcher]] for its decision to withdraw ''Endurance'' from the islands; a decision which contributed to the [[1982 invasion of the Falkland Islands|Argentine invasion]] that year.{{sfn|Conroy|2006|pp=77–86}}

====1976 leadership election====
{{main|1976 Labour Party leadership election}}
Barely two years after beginning his second spell as prime minister, Wilson announced his resignation on 16 March 1976. Although this came as a surprise to most people, Callaghan had been tipped off by Wilson several days in advance. Callaghan was the favourite to win the subsequent leadership election; although he was the oldest candidate, at 64 years old, he was also the most experienced and least divisive, being seen as in the centre ground of the Labour Party. Popularity with all parts of the Labour movement saw him through the ballot of Labour MPs to win the leadership vote. On 5 April 1976, Callaghan became prime minister.{{sfn|Conroy|2006|pp=89–90}}

==Prime Minister of the United Kingdom: 1976–1979<span class="anchor" id="Premiership"></span><!-- linked from redirects [[Premiership of James Callaghan]], [[Prime ministership of James Callaghan]] -->==
{{Further|Labour government, 1974–1979}}<!-- [[WP:NOTBROKEN]] -->
{{Infobox incumbency
| image        = James Callaghan ppmsca.53218 (cropped).tif
| caption      = Callaghan in 1977
| name         = Premiership of James Callaghan
| term_start   = 5 April 1976
| term_end     = 4 May 1979
| premier      = <!-- James Callaghan -->
| premier_link = Prime Minister of the United Kingdom
| cabinet      = [[Callaghan ministry]]
| party        = [[Labour Party (UK)|Labour Party]]
| election     = <!-- N/A -->
| monarch      = [[Elizabeth II]]
| seat         = [[10 Downing Street]]
| predecessor  = [[Second premiership of Harold Wilson|Harold Wilson]]
| successor    = [[Premiership of Margaret Thatcher|Margaret Thatcher]]
}}
Callaghan was the only prime minister to have held all three leading Cabinet positions{{snd}}chancellor of the exchequer, home secretary and foreign secretary{{snd}}prior to becoming prime minister.

On becoming prime minister, Callaghan immediately reshuffled the Cabinet: [[Anthony Crosland]] was given Callaghan's previous job as foreign secretary,  while [[Merlyn Rees]] became home secretary, replacing [[Roy Jenkins]] who Callaghan nominated to become [[president of the European Commission]]. Callaghan removed [[Barbara Castle]], with whom he had a poor relationship, from the Cabinet, and gave her job at social security to [[David Ennals]].{{sfn|Conroy|2006|pp=90–91}} 
[[File:President Jimmy Carter and Prime Minister James Callaghan.jpg|thumb|Callaghan (right) with US president [[Jimmy Carter]] in 1978]]

===IMF loan===
Callaghan came to office at a troubled time for the British economy, which was still recovering from the [[1973–1975 recession|1973–75 global recession]], and was beset by double-digit inflation, and rising unemployment (i.e. [[stagflation]]). Within months of entering office, his government was [[1976 sterling crisis|faced with a financial crisis]], which caused the Chancellor [[Denis Healey]] to ask the [[International Monetary Fund]] (IMF) for a large loan of $3900 million to maintain the value of [[pound sterling|sterling]]. The IMF demanded large cuts in public spending in return for the loan, which caused consternation among Labour's supporters. The Cabinet was split on the issue, and the left of the party led by [[Tony Benn]] put forward an [[Alternative Economic Strategy]] as a proposed alternative to the loan, which involved [[protectionism]], but this option was ultimately rejected. After tough negotiations, the government was able to negotiate a reduction in the proposed public spending cuts from £5000 million to £1,500 million in the first year, and then £1000 million a year over the next two years. In the event, it turned out that the loan had not been necessary, as it was based on an overestimation of the [[Public Sector Borrowing Requirement]] by the [[HM Treasury|Treasury]]: The government only had to draw on half of the loan, and it was paid back in full by May 1979. By 1978, the economic situation showed signs of improvement, with unemployment falling, and inflation falling to single digits. Healey was able to introduce an expansionary budget in April 1978.<ref name="Thorpe70s"/>

Callaghan was widely judged to have handled the IMF crisis skilfully, avoiding any resignations from the Cabinet, and negotiating much lower spending cuts than had been originally demanded.<ref name="Thorpe70s"/>{{sfn|Conroy|2006|p=100}}

===Minority government===
Callaghan's time as prime minister was dominated by the troubles in running a government with a minority in the [[House of Commons of the United Kingdom|House of Commons]]: Labour had won a narrow majority of three seats at the [[October 1974 United Kingdom general election|October 1974 election]], however by April 1976, their overall majority had disappeared, due to by-election losses and the defection of two MPs to the breakaway [[Scottish Labour Party (1976)|Scottish Labour Party]], which left Callaghan heading a [[minority government]], forced to do deals with smaller parties in order to govern. An arrangement negotiated in March 1977 with [[Liberal Party (UK)|Liberal Party]] leader [[David Steel]], known as the [[Lib–Lab pact#1977|Lib–Lab pact]], lasted until August the following year. Deals were then forged with various small parties including the [[Scottish National Party]] (SNP) and the Welsh nationalist [[Plaid Cymru]], prolonging the life of the government. The nationalist parties, in turn, demanded [[devolution]] to their respective constituent countries in return for their supporting the government. When referendums for Scottish and Welsh devolution were held in March 1979 the [[1979 Welsh devolution referendum|Welsh devolution referendum]] saw a large majority vote against, while the [[1979 Scottish devolution referendum|Scottish referendum]] returned a narrow majority in favour, but failed to reach the required threshold of 40% of the electorate in support. When the Labour government duly refused to push ahead with setting up the proposed Scottish Assembly, the SNP withdrew its support for the government: this finally brought the government down as the Conservatives triggered a [[1979 vote of no confidence in the Callaghan ministry|vote of no confidence]] in Callaghan's government that was lost by a single vote on 28 March 1979, necessitating a [[1979 United Kingdom general election|general election]].<ref name="Thorpe70s">{{cite book |last1=Thorpe |first1=Andrew |title=A History of The British Labour Party |date=2001 |publisher=Palgrave |isbn=0-333-92908-X |pages=166–188}}</ref>

===Policies===
====Economic policies====
Callaghan's time as prime minister saw broad continuation of the policies which Labour had adopted since it had been elected in 1974 under Wilson. Callaghan continued the policies of the "[[Social Contract (Britain)|social contract]]" which sought to control inflation through a voluntary [[wage restraint]] agreement with the trade unions. Although the public spending cuts after 1976 made it more difficult for the government to deliver the increased benefits which had been promised as part of the package. Another policy continuation was the [[National Enterprise Board]] (NEB) which formed the centrepiece of the government's [[industrial policy]]. In practice, the NEB's main activity became one of rescuing failing companies.<ref name="Thorpe70s"/>

At the 1976 [[Labour Party Conference]], at the height of the [[stagflation]] crisis, Callaghan made the following statement in his speech:<ref name="JCquotes">{{cite news |title=Jim Callaghan: A life in quotes |date=26 March 2005 |url=https://news.bbc.co.uk/2/hi/uk_news/politics/3288907.stm |publisher=BBC |access-date=22 August 2024}}</ref>

<blockquote> "We used to think that you could spend your way out of a recession and increase employment by cutting taxes and boosting government spending. I tell you in all candour that that option no longer exists, and in so far as it ever did exist, it only worked on each occasion since the war by injecting a bigger dose of inflation into the economy, followed by a higher level of unemployment as the next step." </blockquote>

This has been seen as the repudiation of [[Keynesian economics]], which had formed the bedrock of the [[post-war consensus]], and a precursor to [[Monetarism]], with the fight against inflation being pursued ahead of the aim of [[full employment]], which had been the policy of every post-war government. Although Callaghan was never a full-blown Monetarist, as he had rejected larger cuts in public expenditure which would have resulted in higher unemployment.<ref name="Thorpe70s"/>{{sfn|Conroy|2006|p=96}}

====Other policies====
[[File:Persconferentie na afloop Overleg van de 9 , Den Haag Callaghan (oa met Enge, Bestanddeelnr 928-9157 (crop).jpg|thumb|Callaghan visiting [[The Hague]] in 1976]]
Despite its lack of Parliamentary majority, Callaghan's government was able to carry out a number of reforms in many areas (see [[Labour government, 1974–1979#Major contributions]]). Callaghan relied heavily on [[Michael Foot]], who was made [[Leader of the House of Commons]] and given the task of steering through the government's legislative programme. Among the measures introduced was the [[Race Relations Act 1976]], which established the [[Commission for Racial Equality]] to promote racial equality, increases in pension and benefit rates, the creation of the [[Police Complaints Board]], the expansion of [[Comprehensive school (England and Wales)|comprehensive education]], the establishment of a statutory responsibility to provide housing for the homeless, [[Child benefits in the United Kingdom#Child Benefit and the end of child tax allowance|universal Child Benefit]], the phasing out of pay beds in [[Hospital trust|NHS hospitals]], housing security for agricultural workers, grants to inner cities, and legislation to improve consumer safety.<ref>{{cite web |last1=Johnson |first1=Richard |title=The Life and Legacy of Michael Foot |url=https://tribunemag.co.uk/2021/07/the-life-and-legacy-of-michael-foot |publisher=Tribune |access-date=30 July 2025}}</ref>

In February 1977, an easing of the conditions under which unemployment benefit can be paid to people who are unemployed as a result of a trade dispute was carried out. As a result of this change (one that had been recommended by a Royal Commission on Trade Unions and Employers' Associations back in 1968) “only those participating in or directly interested in the trade dispute are disqualified from benefit,” as noted by one study.<ref>YEARBOOK ON HUMAN RIGHTS FOR 1977-1978, UNITED NATIONS New York, 1982, P.157</ref> In August 1977 a new rule was made (Statutory Instrument No 1037/1977 dated the 18th of June 1977) “under Section 23 of the Children and Young Persons Act 1969, restricting the circumstances in which a court may remand a person aged under 17 to a Prison Department establishment in England and Wales.”<ref>Social Trends 1977 P.130</ref> In Scotland, the [[Community Service by Offenders Act 1978]] introduced provisions whereby offenders might, under certain circumstances, be ordered by courts to undertake community work as an alternative to a prison sentence. This legislation brought Scotland in line with England and Wales where similar provisions already apply. The [[Protection from Eviction Act 1977]] “made it an offence unlawfully to evict (or to attempt to do so) any resident occupant, or to enforce the right to repossession other than through the courts. It laid down restrictions on the validity of notices to quit.” The [[Rent Act 1977]], which applied to England and Wales, “laid down the means of fixing rents for controlled or regulated tenancies, and also for tenancies of housing associations or housing trusts.”<ref>Social Trends 9, 1979 Edition, A publication of the Government Statistical Service, P.224</ref>

The [[Home Purchase Assistance and Housing Corporation Guarantee Act 1978]] gave help to first-time home buyers.<ref>{{cite book |url=https://books.google.com/books?id=F16VaIYewIEC&q=United+kingdom+rent+control+of+increases+act+1969&pg=PA376 |title=Growth to Limits |access-date=29 December 2014 |isbn=9783110111330 |year=1986 |last1=Flora |first1=Peter|publisher=Walter de Gruyter }}</ref> The [[Inner Urban Areas Act 1978]] allowed local authorities to assist declining industrial areas and central government provided new subsidies to those inner city areas with the most problems,<ref name="SeldonHickson"/> while the 1978 Finance Act introduced profit-sharing schemes.<ref>{{cite book |url=https://books.google.com/books?id=Y4PjVdUHNQYC&q=1978+finance+Act+introduced+profit+sharing+schemes&pg=PA112 |title=Seeking a Premier Economy |access-date=29 December 2014 |isbn=9780226092904 |date=2007-12-01 |last1=Card |first1=David |last2=Blundell |first2=Richard |last3=Freeman |first3=Richard B.|publisher=University of Chicago Press }}</ref> The Consumer Safety Act 1978 protected consumers from purchasing potentially harmful goods,<ref>{{cite book |url=https://books.google.com/books?id=pMnFocHqrpAC&q=UK%2520Consumer%2520Safety%2520Act%25201978&pg=PT113 |title=Teacher Support Pack Edexcel |last=Barrett |first=Richard |date=2003-03-11 |publisher=Nelson Thornes |isbn=9780748757466}}</ref> On the 3rd of April 1979 the number of hours that lone parents had to work to qualify for Family Income Supplement was reduced from 30 to 24 per week.<ref>Supplementary Benefits Commission Annual Report 1978 P.35</ref>

In 1977, Callaghan's government also [[nationalised]] the shipbuilding industry, creating [[British Shipbuilders]], and the aircraft industry, creating [[British Aerospace]].<ref name="Thorpe70s"/>

During his first year in office, Callaghan started what has since become known as 'The Great Debate', when he spoke at [[Ruskin College]], [[Oxford]], about the 'legitimate concerns' of the public about the quality of education in the nation's maintained schools. This discussion led to greater involvement of the government, through its ministries, in the curriculum and administration of state education, leading to the eventual introduction of the [[National curriculum]] some ten years later.<ref>{{cite news |last=Eason |first=Gary |url=https://news.bbc.co.uk/1/hi/education/4386373.stm |title=Callaghan's Great Education Debate |work=BBC News |date=27 March 2005 |access-date=30 April 2010 |archive-date=15 January 2009 |archive-url=https://web.archive.org/web/20090115082155/http://news.bbc.co.uk/1/hi/education/4386373.stm |url-status=live }}</ref> In 1977 he caused controversy with the appointment of [[Peter Jay (diplomat)|Peter Jay]], his then son-in-law as the [[British Ambassador to the United States]].{{sfn|Conroy|2006|p=105}}

===Proposed 1978 election===
Over the summer of 1978, most opinion polls showed Labour with a lead of up to five points, and the expectation grew that Callaghan would call an autumn [[snap election]], which would have given him a second term in office until autumn 1983.<ref>{{cite news |last1=Clark |first1=Neil |title=How Jim Callaghan Changed the World |url=https://www.theguardian.com/commentisfree/2007/sep/20/howjimcallaghanchangedthe |access-date=3 November 2018 |work=The Guardian |date=20 September 2007 |archive-date=3 November 2018 |archive-url=https://web.archive.org/web/20181103210215/https://www.theguardian.com/commentisfree/2007/sep/20/howjimcallaghanchangedthe |url-status=live }}</ref><ref name="Thorpe70s"/> The economy had started to improve by this time: 1978 was a year of economic recovery for Britain, with inflation falling to single digits, unemployment declining during the year from a peak of 1.5 million in the third quarter of 1977, to 1.3 million a year later, and general living standards going up by more than 8%.<ref>Henry Pelling (1993), ''A Short History of the Labour Party'', p 171.</ref><ref name="Thorpe70s"/> Famously, he strung along the opposition and was expected to make his declaration of election in a broadcast on 7 September 1978.<ref>{{cite news|url=https://news.bbc.co.uk/onthisday/hi/dates/stories/september/7/newsid_2502000/2502781.stm|title=1978: Callaghan accused of running scared|work=On This Day|date=7 September 1978|access-date=28 March 2012|archive-date=10 April 2012|archive-url=https://web.archive.org/web/20120410202005/http://news.bbc.co.uk/onthisday/hi/dates/stories/september/7/newsid_2502000/2502781.stm|url-status=live}}</ref> Instead he announced that the election would be delayed until the following year, which was met with almost universal surprise.{{sfn|Conroy|2006|pp=109–116}} His decision not to call an election was seen by many as a sign of his dominance of the political scene and he ridiculed his opponents by singing old-time music hall star [[Vesta Victoria]]'s song "[[Waiting at the Church]]" at that month's [[Trades Union Congress]] meeting.<ref name="Beckett-461-462">{{cite book |first1=Andy |last1=Beckett |author-link=Andy Beckett |title=When the Lights Went Out. Britain in the Seventies |date= 2009 |publisher=[[Faber and Faber]] |pages=461–462}}</ref><ref>{{cite web |last1=Byrne |first1=Eugene |title=Waiting at the Church |url=https://www.historyextra.com/period/waiting-at-the-church/ |work=History Extra |date=4 November 2011|access-date=3 November 2018 |archive-date=3 November 2018 |archive-url=https://web.archive.org/web/20181103210126/https://www.historyextra.com/period/waiting-at-the-church/ |url-status=live }}</ref> This was celebrated by the TUC but has since been interpreted as a moment of [[hubris]].<ref>{{cite news |last1=Taylor |first1=Matthew |author-link=Matthew Taylor (political strategist) |title=Tony, you can leave the stage with them still wanting more |url=https://www.theguardian.com/commentisfree/2007/jan/07/comment.politics1 |access-date=3 November 2018 |work=The Guardian |date=7 January 2007 |archive-date=3 November 2018 |archive-url=https://web.archive.org/web/20181103210155/https://www.theguardian.com/commentisfree/2007/jan/07/comment.politics1 |url-status=live }}</ref> Callaghan intended to convey the message that he had not promised an election.<ref name="Beckett-461-462"/>

Callaghan's failure to call an election during 1978 was later widely seen as a political miscalculation;<ref name="Beckett-463">{{cite book |first1=Andy |last1=Beckett |author-link=Andy Beckett |title=When the Lights Went Out. Britain in the Seventies |date= 2009 |publisher=[[Faber and Faber]] |page=463}}</ref> indeed, he himself later admitted that not calling an election was an error of judgement. However, private polling by the Labour Party in the autumn of 1978 had shown the two main parties with about the same level of support.<ref>{{cite book |first1=Andy |last1=Beckett |author-link=Andy Beckett |title=When the Lights Went Out. Britain in the Seventies |date= 2009 |publisher=[[Faber and Faber]] |page=460}}</ref>

===Winter of Discontent===
{{Main|Winter of Discontent}}
[[File:Carter guadeloupe cropped.png|thumb|Callaghan (right) with [[Helmut Schmidt]], [[Jimmy Carter]] and [[Valéry Giscard d'Estaing]] in Guadeloupe, 1979]]
Callaghan's method of dealing with the long-term economic difficulties involved [[Social Contract (Britain)|wage restraint]], which had been operating for four years with reasonable success. He gambled that a fifth year would further improve the economy and allow him to be re-elected in 1979, and so he attempted to hold pay rises to 5% or less. The trade unions rejected continued wage restraint and in a wave of widespread strikes over the winter of 1978–79 (known as the [[Winter of Discontent]]) secured higher pay. The industrial unrest made his government unpopular, and Callaghan's response to one interview question only made it worse. Returning to the United Kingdom from the [[Guadeloupe Conference]] in January 1979, Callaghan was asked, "What is your general approach, in view of the mounting chaos in the country at the moment?" Callaghan replied, "Well, that's a judgement that you are making. I promise you that if you look at it from outside, and perhaps you're taking rather a parochial view at the moment, I don't think that other people in the world would share the view that there is mounting chaos." This reply was reported in ''[[The Sun (United Kingdom)|The Sun]]'' under the headline "Crisis? What Crisis?".<ref>{{cite news |url=https://news.bbc.co.uk/2/hi/uk_news/politics/921524.stm |title=Crisis? What crisis? |work=BBC News |date=12 September 2000 |access-date=29 May 2019 |archive-date=6 January 2018 |archive-url=https://web.archive.org/web/20180106231711/http://news.bbc.co.uk/1/hi/uk_politics/921524.stm |url-status=live }}</ref> Callaghan also later admitted in regard to the Winter of Discontent that he had "let the country down".<ref>Peter Hennessy (2001), ''The Prime Minister'', p. 377.</ref>

===1979 general election===
{{main|1979 United Kingdom general election}}
The Winter of Discontent saw Labour's performance slump dramatically in the opinion polls. They had topped most of the pre-winter opinion polls by several points, but in February 1979 at least one opinion poll was showing the Conservatives 20 points ahead of Labour and it appeared inevitable that Labour would lose the forthcoming election.<ref>{{cite web |url=http://www.ipsos-mori.com/newsevents/ca/ca.aspx?oItemId=193 |title=Comment & Analysis &#124; New Labour And Delivery |publisher=Ipsos MORI |date=15 May 2004|access-date=28 March 2012 |archive-url=https://web.archive.org/web/20120717025821/http://www.ipsos-mori.com/newsevents/ca/ca.aspx?oItemId=193 |archive-date=17 July 2012 |url-status=dead  }}</ref>

In the buildup to the election, the ''[[Daily Mirror]]'' and ''[[The Guardian]]'' supported Labour, while ''The Sun'', the ''[[Daily Mail]]'', the ''[[Daily Express]]'', and ''[[The Daily Telegraph]]'' supported the Conservatives.<ref>{{cite news | url=https://www.theguardian.com/news/datablog/2010/may/04/general-election-newspaper-support#zoomed-picture | work=The Guardian | first=Katy | last=Stoddard | title=Newspaper support in UK general elections | date=4 May 2010 | access-date=14 December 2016 | archive-date=1 August 2013 | archive-url=https://web.archive.org/web/20130801141949/http://www.theguardian.com/news/datablog/2010/may/04/general-election-newspaper-support#zoomed-picture | url-status=live }}</ref>

[[File:Votes by party in the 1979 vote of no confidence against the government of James Callaghan.png|left|thumb|Votes by party in the [[1979 vote of no confidence in the Callaghan ministry]]. The motion passed by one vote.]]
On 28 March 1979, the House of Commons passed a [[1979 vote of no confidence in the Callaghan ministry|motion of no-confidence by one vote]], 311–310, which forced Callaghan to call a [[1979 United Kingdom general election|general election]] which was held on 3 May.<ref>{{cite news |url=https://news.bbc.co.uk/onthisday/hi/dates/stories/march/28/newsid_2531000/2531007.stm |title=1979: Early election as Callaghan defeated |work=On this Day |access-date=29 March 2009 |date=28 March 1979 |archive-date=9 December 2017 |archive-url=https://web.archive.org/web/20171209004131/http://news.bbc.co.uk/onthisday/hi/dates/stories/march/28/newsid_2531000/2531007.stm |url-status=live }}</ref> The Conservatives under [[Margaret Thatcher]] ran a campaign on the slogan "[[Labour Isn't Working]]". Although Callaghan remained personally more popular with the electorate than Thatcher, the Conservatives won the election with an overall majority of 43 seats.<ref>{{cite web |title=Election 1979 Results |url=https://www.electionpolling.co.uk/results/1979 |publisher=Election Polling |access-date=9 November 2024}}</ref><ref>{{cite web |title=The Election of 1979 |url=https://thepoliticsteacherorg.thepoliticsteacher.org/home/a-and-as-politics-2017/unit-1-politics-in-the-uk-year-12--13/voting-behaviour-and-the-media/the-election-of-1979 |publisher=The Politics Shed |access-date=9 November 2024}}</ref> The Labour vote held up, with the party winning a similar number of votes to 1974, however the Conservatives benefited from a surge in turnout.<ref>{{cite web |title=General Election 1979 |url=https://www.studysmarter.co.uk/explanations/history/modern-britain/general-election-1979/ |publisher=StudySmarter |access-date=3 November 2024}}</ref>

During the 1979 election campaign, Callaghan detected a sea-change in public opinion, which he privately opined:<ref name="JCquotes"/>

<blockquote> "You know there are times, perhaps once every thirty years, when there is a sea-change in politics. It then does not matter what you say or what you do. There is a shift in what the public wants and what it approves of. I suspect there is now such a sea change and it is for Mrs Thatcher." </blockquote>

After losing power in 1979, Labour spent the next 18 years in opposition, pejoratively described as the period in wilderness for the party.<ref>{{cite news | url=https://news.bbc.co.uk/2/hi/3067563.stm | work=BBC News | first=Paul | last=Wilenius | title=Enemies within: Thatcher and the unions | date=5 March 2004 | access-date=6 May 2011 | archive-date=18 February 2020 | archive-url=https://web.archive.org/web/20200218003411/http://news.bbc.co.uk/1/hi/3067563.stm | url-status=live }}</ref>

==Leader of the opposition, 1979–1980==
In the immediate aftermath of the election defeat, Callaghan wanted to resign as leader, but was persuaded to stay on in the hope that he would provide some stability, and ease the way for [[Denis Healey]] to be elected as his successor. During Callaghan's 17-month stint as opposition leader, the Labour Party was torn apart by factional struggles between the left and right of the party. In the event, the left succeeded in electing [[Michael Foot]] as his successor following the [[1980 Labour Party leadership election (UK)|November 1980 leadership election]], and he returned to the backbenches.{{sfn|Conroy|2006|pp=135–137}}

==Backbenches and retirement, 1980–2005==
In 1982, along with his friend [[Gerald Ford]], he co-founded the annual [[AEI World Forum]].<ref>{{Cite web|title=Remembering Gerald Ford, 1913–2006 {{!}} AEI|url=https://www.aei.org/articles/remembering-gerald-ford-1913-2006/|access-date=8 March 2021|website=American Enterprise Institute – AEI|language=en-US|archive-date=1 March 2020|archive-url=https://web.archive.org/web/20200301112344/https://www.aei.org/articles/remembering-gerald-ford-1913-2006/|url-status=live}}</ref>

In 1983, he attacked Labour's plans to reduce defence,<ref>Britannica Concise Encyclopedia:
Leonard James Callaghan Baron Callaghan of Cardiff</ref><ref>{{cite web |url=http://socialistworld.net/doc/4585 |title=Britain: The road to New Labour |publisher=socialistworld.net |access-date=28 March 2012 |archive-date=2 April 2012 |archive-url=https://web.archive.org/web/20120402174339/http://www.socialistworld.net/doc/4585 |url-status=live }}</ref> and the same year became [[Father of the House (United Kingdom)|Father of the House]] as the longest continually-serving member of the Commons.

In 1987, he was made a [[Order of the Garter|Knight Companion of the Garter]] and stood down at the [[1987 United Kingdom general election|1987 general election]] after 42 years as an MP. He was one of the last remaining MPs elected in the Labour landslide of 1945. Shortly afterwards, he was elevated to the [[House of Lords]] on 5 November 1987 as a [[life peer]] with the title '''Baron Callaghan of Cardiff''', ''of the [[City of Cardiff]] in the [[South Glamorgan|County of South Glamorgan]]''.<ref>{{London Gazette |issue=51118 |date=12 November 1987 |page=13941}}</ref> In 1987, his autobiography, ''Time and Chance'', was published. He also served as a non-executive director of the [[Bank of Wales]].

His wife [[Audrey Callaghan|Audrey]], a former chairman (1969–82) of [[Great Ormond Street Hospital]], spotted a letter to a newspaper which pointed out that the [[copyright]] of ''[[Peter Pan, or The Boy Who Wouldn't Grow Up|Peter Pan]]'', which had been assigned by [[J. M. Barrie]] to the hospital, was going to expire at the end of that year, 1987 (50 years after Barrie's death, the then-current copyright term). In 1988, Callaghan moved an amendment to the [[Copyright, Designs and Patents Act 1988|Copyright Designs & Patents Act]], then under consideration in the House of Lords, to grant the hospital a right to royalty in perpetuity despite the lapse of copyright, and it was passed by the government.

During the 1980s, Lord Callaghan supported the work of the [https://www.jim-conway-foundation.co.uk/annual-memorial-lecture.php Jim Conway Memorial Foundation] (JCF), a registered educational charity. He gave the foundation's inaugural memorial lecture in 1981 and took the Chair for a JCF symposium in 1990, being the final event of that ten-year lecture series.<ref>'''Trade Unions: The Thatcher years''' '''ISBN 0950930849, 9780950930806'''</ref>

[[Tony Benn]] recorded in his diary entry of 3 April 1997 that during the [[1997 United Kingdom general election|1997 general election]] campaign, Callaghan was telephoned by a volunteer at Labour headquarters asking him if he would be willing to become more active in the party. According to Benn:<blockquote>One young woman in her mid-twenties rang up Jim Callaghan and said to him on the phone, "Have you ever thought of being a bit more active in politics?" So Callaghan said, "Well I was a Labour Prime Minister{{snd}}what more could I do?"<ref>[https://books.google.com/books?id=9fcUC8JmpxYC&dq=One%20young%20woman%20in%20her%20mid-twenties%20rang%20up%20Jim%20Callaghan%20and%20said%20to%20him%20on%20the%20phone%2C%20%22Have%20you%20ever%20thought%20of%20being%20a%20bit%20more%20active%20in%20politics%3F%22%20So%20Callaghan%20said%2C%20%22Well%20I%20was%20a%20Labour%20Prime%20Minister%20%E2%80%93%20what%20more%20could%20I%20do%3F%22&pg=PA401 ''Free at Last!: Diaries, 1991–2001''] {{Webarchive|url=https://web.archive.org/web/20211108141106/https://books.google.co.uk/books?id=9fcUC8JmpxYC&lpg=PA401&ots=NJJLMggsnI&dq=One+young+woman+in+her+mid-twenties+rang+up+Jim+Callaghan+and+said+to+him+on+the+phone%2C+%22Have+you+ever+thought+of+being+a+bit+more+active+in+politics%3F%22+So+Callaghan+said%2C+%22Well+I+was+a+Labour+Prime+Minister+%E2%80%93+what+more+could+I+do%3F%22&pg=PA401 |date=8 November 2021 }}, Tony Benn, Random House, 2003, page 401</ref></blockquote>

During an interview broadcast on the [[BBC Radio 4]] programme ''[[Letters of last resort|The Human Button]]'', Callaghan became the only prime minister to go on record with his opinion on ordering a retaliation in the event of a nuclear attack on the United Kingdom:<blockquote>"If it were to become necessary or vital, it would have meant the deterrent had failed, because the value of the nuclear weapon is frankly only as a deterrent", he said. "But if we had got to that point, where it was, I felt, necessary to do it, then I would have done it. I've had terrible doubts, of course, about this. I say to you, if I had lived after having pressed that button, I could never, ever have forgiven myself."<ref>{{cite news |last1=Knight |first1=Richard |title=Finger on the Nuclear Button |url=https://news.bbc.co.uk/today/hi/today/newsid_7758000/7758347.stm |website=BBC Today Programme |publisher=BBC |access-date=3 November 2018 |date=2 December 2008 |archive-date=9 November 2018 |archive-url=https://web.archive.org/web/20181109113623/http://news.bbc.co.uk/today/hi/today/newsid_7758000/7758347.stm |url-status=live }}</ref></blockquote>

In October 1999, Callaghan told ''The Oldie Magazine'' that he would not be surprised to be considered as Britain's worst prime minister in 200 years. He also said in this interview that he "must carry the can" for the Winter of Discontent.<ref>{{cite news | url=https://news.bbc.co.uk/1/hi/uk_politics/468625.stm | work=BBC News | title=Callaghan expects 'worst PM' tag | date=8 October 1999 | access-date=16 April 2011 | archive-date=6 May 2004 | archive-url=https://web.archive.org/web/20040506152754/http://news.bbc.co.uk/1/hi/uk_politics/468625.stm | url-status=live }}</ref>
[[File:Queen Elizabeth II with her British Prime Ministers during her Golden Jubilee in 2002.jpg|thumb|Callaghan (second from right) in 2002 with Queen Elizabeth II, [[Tony Blair]] (left) and three other former Prime Ministers; [[Margaret Thatcher]], [[Edward Heath]] and [[John Major]].]]
One of his final public appearances came on 29 April 2002, when shortly after his 90th birthday, he sat alongside the then-Prime Minister [[Tony Blair]] and three other surviving former prime ministers at the time{{snd}}[[Edward Heath]], [[Margaret Thatcher]] and [[John Major]] at [[Buckingham Palace]] for a dinner which formed part of the celebrations for the [[Golden Jubilee of Elizabeth II]], alongside his daughter [[Margaret Jay, Baroness Jay of Paddington|Margaret, Baroness Jay]], who had served as leader of the [[House of Lords]] from 1998 until 2001.<ref>{{cite news | url=https://news.bbc.co.uk/2/hi/uk_news/politics/1957292.stm | work=BBC News | title=Queen dines with her prime ministers | date=29 April 2002 | access-date=11 January 2011 | archive-date=12 February 2007 | archive-url=https://web.archive.org/web/20070212082602/http://news.bbc.co.uk/1/hi/uk_politics/1957292.stm | url-status=live }}</ref>

==Personal life==
Callaghan's interests included [[rugby football|rugby]] (he played lock for [[Streatham-Croydon RFC|Streatham RFC]] before the Second World War), tennis and agriculture. He married [[Audrey Callaghan|Audrey Elizabeth Moulton]], whom he had met when they both worked as Sunday School teachers at the local Baptist church,<ref>{{cite news|author=Julia Langdon |url=https://www.theguardian.com/print/0,3858,5149827-103684,00.html |title=Audrey Callaghan |work=The Guardian  |date= 17 March 2005|access-date=30 April 2010 | location=London}}</ref> in July 1938 and had three children{{snd}}one son and two daughters.
* [[Margaret, Baroness Jay of Paddington]], who married first [[Peter Jay (diplomat)|Peter Jay]] and later [[Michael Adler (doctor)|Professor Mike Adler]].<ref>{{cite news |author=Geraldine Bednell |url=https://www.independent.co.uk/arts-entertainment/a-woman-of-affairs-1340033.html |title=A Woman of Affairs |work=The Independent |location=London |date=3 March 1996 |access-date=29 May 2019 |archive-date=29 May 2019 |archive-url=https://web.archive.org/web/20190529075008/https://www.independent.co.uk/arts-entertainment/a-woman-of-affairs-1340033.html |url-status=live }}</ref>
* Julia, who married Ian Hamilton Hubbard and settled in Lancashire
* Michael, who married Jennifer Morris and settled in Essex.

In 1968, Callaghan purchased a farm in [[Ringmer]], East Sussex, and in his retirement he and his wife commenced full time farming there.<ref name="DWB"/>

Although there is much doubt about how much belief Callaghan retained into adult life, the Baptist nonconformist ethic was a profound influence throughout all of his public and private life.<ref name="ODNBCallaghan"/> It is claimed that Callaghan was an [[atheist]],<ref>{{cite news|url=https://historynewsnetwork.org/article/132223|title=Why Don't Britain's Leaders Pray in Public?|first=Luke James |last=Reader|publisher=History News Network|access-date=13 December 2021}}</ref> who lost his belief in God while he was working as a trade union official.<ref name="infobritain">{{cite web|url=http://www.infobritain.co.uk/James_Callaghan.htm|title=James Callaghan|publisher=infobritain.co.uk|access-date=16 August 2015|url-status=dead|archive-url=https://web.archive.org/web/20150924034742/http://www.infobritain.co.uk/James_Callaghan.htm|archive-date=24 September 2015}}</ref> His son Michael Callaghan disagrees: "My father, Jim Callaghan, was brought up as a practising Baptist and as a young man was a Sunday school teacher. As a young man embracing socialism, he had difficulties reconciling his new beliefs with the teachings of his church, but he was persuaded to stay in his Baptist chapel. [...] Incidentally, the title of his autobiography is 'Time and Chance', a quote from Ecclesiastes 9:11."<ref>{{cite news |url=https://www.economist.com/letters/2023/01/12/letters-to-the-editor |title=James Callaghan's religion |last1=Callaghan |first1=Michael |date=12 January 2023 |newspaper=[[The Economist]] }}</ref>

==Death==
[[File:Peter Pan statue by Diarmuid Byron O'Connor.JPG|thumb|upright|Callaghan's ashes were scattered in the flowerbed around the [[Peter Pan statue|''Peter Pan'' statue]] (pictured in 2008) at London's [[Great Ormond Street Hospital]]. ]]

Callaghan died from [[lobar pneumonia]], [[cardiac failure]] and kidney failure, on 26 March 2005.<ref name="ODNBCallaghan"/><ref>Blake, Aled (18 August 2005), [https://www.walesonline.co.uk/news/wales-news/a-lot-what-great-causes-2383872 {{"'}}A lot of what he did was for great causes when he retired from frontline politics' | This is how Britain's first millionaire socialist Prime Minister made and shared his wealth"], ''Wales Online''. {{Webarchive|url=https://web.archive.org/web/20210425233224/https://www.walesonline.co.uk/news/wales-news/a-lot-what-great-causes-2383872 |date=25 April 2021 }} Retrieved 26/4/21.</ref> He died just one day before his 93rd birthday and 11 days after his wife of 67 years, who had spent the last four years of her life in a nursing home due to [[Alzheimer's disease]]. After her death, Callaghan moved into her former room at the nursing home in [[Burgess Hill]], Sussex, and spent his final days there.<ref name="ODNBCallaghan"/> He died as Britain's longest-lived former prime minister, having surpassed [[Harold Macmillan]]'s record 39 days earlier. Callaghan died four months before former prime minister [[Edward Heath]].<ref>{{cite news |title=Lord Callaghan sets record|author-link=Patrick Wintour|first=Patrick|last=Wintour |author2=[[Julian Glover (journalist)|Julian Glover]] |url=https://www.theguardian.com/politics/2005/feb/14/uk.past |access-date=27 January 2021 |work=The Guardian |date=14 February 2005 |archive-date=31 January 2021 |archive-url=https://web.archive.org/web/20210131183659/https://www.theguardian.com/politics/2005/feb/14/uk.past |url-status=live }}</ref>

Lord Callaghan was cremated, and his ashes were scattered in a flowerbed around the base of the [[Peter Pan statue|''Peter Pan'' statue]] near the entrance of London's [[Great Ormond Street Hospital]], where his wife had formerly been chair of the [[board of governors]].<ref>{{cite web|title=James Callaghan|url=http://www.westminster-abbey.org/our-history/people/james-callaghan|publisher=Westminster Abbey|access-date=11 September 2016|archive-date=18 September 2016|archive-url=https://web.archive.org/web/20160918064036/http://www.westminster-abbey.org/our-history/people/james-callaghan|url-status=live}}</ref>

His [[Order of the Garter]] Banner was transferred from [[St George's Chapel, Windsor Castle]] to [[Llandaff Cathedral]] in [[Cardiff]] following his death.<ref>{{cite web |title=Garter Banner Locations |url=https://www.stgeorges-windsor.org/wp-content/uploads/2018/10/Garter-Banner-list-Oct-2018.pdf |website=St. George's Chapel Windsor |access-date=1 November 2021 |archive-date=2 November 2021 |archive-url=https://web.archive.org/web/20211102021348/https://www.stgeorges-windsor.org/wp-content/uploads/2018/10/Garter-Banner-list-Oct-2018.pdf |url-status=live }}</ref>

==Historiography==
His contribution and legacy are still contested. The left-wing of the Labour Party considers him a traitor whose betrayals of true socialism laid the foundations for [[Thatcherism]].<ref>Ken Coates, ''What Went Wrong?: Explaining the Fall of the Labour Government'' (2008).</ref> They point to his decision in 1976 to allow the IMF to control the government budget. They accuse him of abandoning the traditional Labour commitment to full employment. They blame his rigorous pursuit of a policy of controlling income growth for the Winter of Discontent.<ref>David Loades, ed., ''Reader's Guide to British History'' (2003) 1:213–15.</ref> Writers on the right of the Labour Party complained that he was a weak leader who was unable to stand up to the left.<ref>Stephen Haseler, ''Tragedy of Labour'' (1981).</ref> New Labour writers who admire [[Tony Blair]] identify Callaghan with the old-style partisanship that was a dead end, and which a new generation of modernisers had to repudiate.<ref>Philip Gould, ''The Unfinished Revolution: How the Modernisers Saved the Labour Party'' (1998).{{page needed|date=November 2024}}</ref>

Practically all commentators agree that Callaghan made a serious mistake by not calling an election in the autumn of 1978. [[Bernard Donoughue]], a senior official in his government, depicts Callaghan as a strong and efficient administrator who stood heads above{{Sic}} his predecessor [[Harold Wilson]].<ref>Bernard Donoughue, ''Prime Minister: The Conduct of Policy Under Harold Wilson and James Callaghan'' (1987)</ref> The standard scholarly biography by [[Kenneth O. Morgan]] is generally favourable{{snd}}at least for the middle of his premiership{{snd}}while admitting failures at the beginning, at the end, and in his leadership role following [[Margaret Thatcher]]'s victory. The treatment found in most textbooks and surveys of the period remains largely negative.<ref>[[Kenneth O. Morgan]], ''Callaghan: A Life'' (1998).</ref>

Historians [[Alan Sked]] and Chris Cook have summarised the general consensus of historians regarding Labour in power in the 1970s:

{{blockquote|If Wilson's record as prime minister was soon felt to have been one of failure, that sense of failure was powerfully reinforced by Callaghan's term as premier. Labour, it seemed, was incapable of positive achievements. It was unable to control inflation, unable to control the unions, unable to solve the Irish problem, unable to solve the Rhodesian question, unable to secure its proposals for Welsh and Scottish devolution, unable to reach a popular ''modus vivendi'' with the Common Market, unable even to maintain itself in power until it could go to the country at the date of its own choosing. It was little wonder, therefore, that Mrs Thatcher resoundingly defeated it in 1979.<ref>Sked, Alan, and Chris Cook, ''Post-War Britain: A Political History'' (4th edn 1993), p. 324.</ref>}}

==Arms==
{{Infobox emblem wide
| name = James Callaghan, Baron Callaghan of Cardiff
| image = Coat of arms of James Callaghan, Baron Callaghan of Cardiff.svg
| imagesize = 250px
| crest = A sea-dragon sejant gules, langued and scaled or, its tail of the last scaled gules, the dorsal fin also gules, about the neck a mural crown or, masoned gules, and supporting to the front with the fin of the dexter foreleg a portcullis gold.
| escutcheon = Quarterly vert and azure in the former a portcullis or in the latter a lymphad with an anchor at its prow and masted or the sail set argent and pennants flying gules overall a fess or to the sinister thereof a grassy mount with a hurst of oak trees and issuing therefrom passant to the dexter a wolf proper.
| motto =  ''Malo laborare quam languere'' (I had rather labour than be idle).<ref>{{cite book|title=Burke's Peerage and Baronetage |edition=107 |date=2003 |page=650  |publisher=Burkes Peerage & Gentry LLC |isbn=0971196621}}</ref>
|orders = The Most Noble Order of the Garter.
|badge =
|symbolism = The portcullis on green represents his parliamentary career. The colour green also refers his farming interests. The wolf and oak trees are taken from the arms of the Irish Callaghan sept. The lymphad (ship) represents his naval service in the Second World War and his family's naval links. His family's naval links are further represented in the crest by the sea-dragon. It is also inspired by the Welsh dragon, which in turn refers to the port of Cardiff, which he represented in Parliament.<ref>{{cite journal |last=Chessyre |first=Hubert |date=1995–1996 |title=The Heraldry of the Garter Banners |url=https://www.stgeorges-windsor.org/wp-content/uploads/2019/05/FR-Vol-7_1995-1996.pdf |journal=Report of the Society of the Friends of St George's and the Descendants of the Knights of the Garter |volume=VII |issue=7 |page=288 |doi= |access-date=19 January 2022 }}</ref>
}}

==See also==
{{Portal bar|Biography|Socialism|Business and economics|Organized Labour|Politics|United Kingdom|Hampshire}}
* [[1976 sterling crisis]]
* [[Shadow Cabinet of James Callaghan]]

==References==
{{Reflist}}

===Bibliography===
* {{cite book |last=Conroy |first=Harry|author-link = Harry Conroy|year=2006 |title=Callaghan (The 20 British Prime Ministers of the 20th Century) |publisher=Haus Publishing |location=London |isbn= 978-1-904950-70-7 }}

==Further reading==
{{refbegin|30em}}

=== Books by Callaghan ===
* Callaghan, James. ''Time and Chance''. Collins, 1987.
* Callaghan, James. ''[https://digital.library.lse.ac.uk/Documents/Detail/challenges-and-opportunities-for-british-foreign-policy-1975/112704 Challenges and Opportunities for British Foreign Policy]''. Fabian Society, 1975.

=== Biographies and studies ===
* Allen, David. "James Callaghan, 1974–76", in ''British Foreign Secretaries Since 1974'' (Routledge, 2004) pp.&nbsp;61–80.
* Ashton, Nigel. "'A Local Terrorist Made Good': the Callaghan government and the Arab–Israeli peace process, 1977–79". ''Contemporary British History'' 31.1 (2017): 114–135 [http://eprints.lse.ac.uk/66267/1/__lse.ac.uk_storage_LIBRARY_Secondary_libfile_shared_repository_Content_Ashton%2C%20N_A%20Local%20Terrorist%20Made%20Good_Ashton_A_Local_Terrorist_Made_Good.pdf online] {{webarchive |url=https://web.archive.org/web/20180719211428/http://eprints.lse.ac.uk/66267/1/__lse.ac.uk_storage_LIBRARY_Secondary_libfile_shared_repository_Content_Ashton%2C%20N_A%20Local%20Terrorist%20Made%20Good_Ashton_A_Local_Terrorist_Made_Good.pdf |date=19 July 2018}}.
* Bell, Patrick. ''The Labour Party in Opposition 1970–1974'' (Routledge, 2012).
* Brivati, Brian. "(Leonard) James Callaghan, Lord Callaghan of Cardiff", in ''Biographical Dictionary of British Prime Ministers'' (Routledge, 2002) pp.&nbsp;350–357.
* Byrne, Christopher, Nick Randall, and Kevin Theakston. "The Collapse of Keynesian Welfarism 1970–1979: Heath, Wilson, Callaghan." in ''Disjunctive Prime Ministerial Leadership in British Politics'' (Palgrave Pivot, Cham, 2020). 51–83.
* Childs, David. ''Britain since 1945: A Political History'' (7th edn., 2012), pp.&nbsp;190–212.
* Conroy, Harry. ''James Callaghan'' (Haus, 2006).
* Davies, Andrew. ''To build a New Jerusalem: the British Labour Party from Keir Hardie to Tony Blair'' (1996) [https://archive.org/details/tobuildnewjerusa0000davi online]
* Dell, Edmund. ''The Chancellors: A History of the Chancellors of the Exchequer, 1945–90'' (HarperCollins, 1997), pp.&nbsp;304–346, covers his term as chancellor.
* Denver, David, and Mark Garnett. ''British General Elections Since 1964: Diversity, Dealignment, and Disillusion'' (2014) {{doi|10.1093/acprof:osobl/9780199673322.003.0003}}
* Derbyshire, Dennis. ''Politics in Britain: From Callaghan to Thatcher (Political Spotlights)''. (Chambers, 1990).
* Deveney, Paul J. ''Callaghan's Journey to Downing Street'' (2010), scholarly study to 1976.
* Donoughue, Bernard. ''Prime Minister: Conduct of Policy Under Harold Wilson and James Callaghan, 1974–79'' (Jonathan Cape, 1987).
* Dorey, Peter. "{{'}}Should I stay or should I go?': James Callaghan's decision not to call an autumn 1978 general election", in ''British Politics'' (2016) 11#1 pp 95–118. [https://link.springer.com/article/10.1057%2Fbp.2015.9 abstract] {{webarchive |url=https://web.archive.org/web/20180610031700/https://link.springer.com/article/10.1057%2Fbp.2015.9 |date=10 June 2018}}
* Dorey, Peter. "{{'}}A Rather Novel Constitutional Experiment': The Formation of the 1977–8 'Lib–Lab Pact{{'}}", in ''Parliamentary History'' 30#3 (2011): 374–394.
* Donoughue, Bernard. ''The Heat of the Kitchen'' (Politico's Publishing, 2003).
* Hay, Colin. "The winter of discontent thirty years on", in ''The Political Quarterly'' 80.4 (2009): 545–552.
* Hennessy, Peter. ''The Prime Minister: the office and its holders since 1945'' (Palgrave Macmillan, 2001), pp.&nbsp;376–96.
* Hickson, Kevin; Miles, Jasper (eds.) ''James Callaghan: An Underrated Prime Minister?'' (Biteback, 2020) 
* Hickson, Kevin; Seldon, Anthony (eds.) ''New Labour, Old Labour: The Wilson and Callaghan Governments 1974–1979'' (Routledge, 2004).
* Holmes, Martin. ''The Labour government, 1974–79: political aims and economic reality'' (Macmillan, 1985).
* Hopkins, Stephen. "The memoir writing of the Wilson and Callaghan governments: The Labour Party and constitutional policy in Northern Ireland", in ''The Northern Ireland Troubles in Britain'' (Manchester University Press, 2016) pp.&nbsp;57–72.
* Hughes, R. Gerald, et al. "Labour's Defence and Foreign Policy, 1976–79", in ''James Callaghan: An Underrated Prime Minister?'' (Biteback, 2020) pp.&nbsp;235–258.
* Jefferys, Kevin (ed.) ''Leading Labour'' (I. B. Tauris, 1999).
* Jones, Tudor. ''Remaking the Labour Party: From Gaitskell to Blair'' (Routledge, 2005).
* Kirkup, Jonathan (ed.) ''The Lib-Lab Pact: A Parliamentary Agreement, 1977–78'' (2014) 
* Leonard, Dick. "James Callaghan—Labour's conservative", in ''A Century of Premiers: Salisbury to Blair'' (2005) pp, 282–299. [https://archive.org/details/centuryofpremier0000leon online]
* Marsh, Steve. "Wilson, Callaghan and the management of Anglo-American relations, 1974–1976", in ''Contemporary British History'' (2020): 1–26. https://doi.org/10.1080/13619462.2020.1785292 {{webarchive |url=https://web.archive.org/web/20211108141114/https://www.tandfonline.com/doi/full/10.1080/13619462.2020.1785292 |date=8 November 2021}}
* Meredith, Stephen. "The oratory of James Callaghan", in ''Labour orators from Bevan to Miliband'' (Manchester University Press, 2016) [http://clok.uclan.ac.uk/11234/5/5974_Meredith.pdf online] {{webarchive |url=https://web.archive.org/web/20170922224815/http://clok.uclan.ac.uk/11234/5/5974_Meredith.pdf |date=22 September 2017}}.
* Meredith, Stephen. ''Labours old and new: the parliamentary right of the British Labour Party 1970–79 and the roots of New Labour'' (Oxford University Press, 2008).
* Morgan, Kenneth O. "James Callaghan, 1976–1979", in ''From New Jerusalem to New Labour: British Prime Ministers from Attlee to Blair'' (Palgrave Macmillan UK, 2010) pp.&nbsp;123–143. [https://archive.org/details/fromnewjerusalem0000unse online]
* Morgan, Kenneth O. "United Kingdom: a comparative case study of labour prime ministers Attlee, Wilson, Callaghan and Blair", in ''The Journal of Legislative Studies'' 10.2–3 (2004): 38–52. https://doi.org/10.1080/135723304200032220
* Morgan, Kenneth O. ''Callaghan: A Life'' (Oxford University Press, 1997). [https://archive.org/details/callaghanlife0000morg online] 
* Morgan, Kenneth O. ''Michael Foot: a life'' (HarperPress, 2007) [https://archive.org/details/michaelfootlife0000morg online]
* Morgan, Kenneth O. ''Britain since 1945: The People's Peace'' (2nd edn., 2001), pp.&nbsp;397–433.
* Pryce, Sue. "James Callaghan 1976–9: A Caretaker", in Sue Pryce, ''Presidentializing the Premiership'' (Palgrave Macmillan, 1997), pp.&nbsp;147–162.
* Rodgers, William. "Government under Stress. Britain's Winter of Discontent 1979", in ''The Political Quarterly'' 55#2 (1984): 171–179.
* Rogers, Chris. "Economic policy and the problem of sterling under Harold Wilson and James Callaghan", in ''Contemporary British History'' 25#3 (2011): 339–363.
* Rosen, Greg. ''Dictionary of Labour Biography'' (Politico's Publishing, 2001).
* Rosen, Greg. ''Old Labour to New'' (Politico's Publishing, 2005).
* Shepherd, John. "The Fall of the Callaghan Government, 1979", in ''How Labour Governments Fall: From Ramsay Macdonald to Gordon Brown'' (London: Palgrave Macmillan UK, 2013). 113–140.
* Shepherd, John. ''Crisis? what crisis?: the Callaghan government and the British winter of discontent'' (Manchester University Press, 2013).
* Silverwood, James, and Peter Wolstencroft. "The Ruskin Speech and Great Debate in English education, 1976–1979: A study of motivation", in ''British Educational Research Journal'' 49.4 (2023): 766–781 on Callaghan's speech at Ruskin College, Oxford, in October 1976. [https://bera-journals.onlinelibrary.wiley.com/doi/pdf/10.1002/berj.3868 online]
* Sked, Alan; Cook, Chris. ''Post-War Britain: A Political History'' (4th edn., 1993), pp.&nbsp;312–328.
* Thomas, James. "'Bound in by history': The Winter of Discontent in British politics, 1979–2004", in ''Media, Culture & Society'' 29#2 (2007): 263–283.
* Turner, Alwyn. ''Crisis? What Crisis?: Britain in the 1970s'' (2013), pp.&nbsp;181–204.
* Wass, Douglas. ''Decline to Fall: The Making of British Macro-economic Policy and the 1976 IMF Crisis'' (2008) {{doi|10.1093/acprof:oso/9780199534746.003.0004}}

=== Memoirs ===
* Healey, Denis. ''The Time of My Life''. Michael Joseph, 1989.
{{refend}}

==External links==
{{Commons category}}
{{Wikiquote}}
{{wikisource|works=or}}
* [http://www.number10.gov.uk/past-prime-ministers/james-callaghan/ More about James Callaghan] on the Downing Street website.
* {{Hansard-contribs | mr-james-callaghan | James Callaghan}}
* [https://web.archive.org/web/20151018024159/http://www.birth-of-tv.org/birth/assetView.do?asset=BIRTHOFTELEV19001___1113221520656%2F An interview with Chancellor Callaghan after an IMF interview at Rio, Brazil]
* [http://www.david-griffiths.co.uk/gallery-1/4572298026 Official portrait of James Callaghan by David Griffiths] {{webarchive |url=https://web.archive.org/web/20170120132900/http://www.david-griffiths.co.uk/gallery-1/4572298026 |date=20 January 2017}}
* [https://www.gresham.ac.uk/lectures-and-events/leadership-and-change-prime-ministers-in-the-post-war-world-james-callaghan 'Prime Ministers in the Post-War World: James Callaghan'], lecture by [[Kenneth O. Morgan]] at [[Gresham College]] on 5 June 2007 (with video and audio files available for download)
* {{NPG name|name=James Callaghan, Baron Callaghan of Cardiff}}
* {{UK National Archives ID}}
* [https://www.parliament.uk/about/living-heritage/transformingsociety/private-lives/yourcountry/collections/collections-second-world-war/parliamentarians-and-people/james-callaghan/ Bronze bust of James Callaghan in the UK Parliamentary Collection]

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