The Price Commission was set up in the UK under the Counter-Inflation Act 1973, alongside the Pay Board, in an attempt to control

inflation In economics, inflation is an increase in the general price level of goods and services in an economy. When the general price level rises, each unit of currency buys fewer goods and services; consequently, inflation corresponds to a reductio ...

. The

Conservative Conservatism is a cultural, social, and political philosophy that seeks to promote and to preserve traditional institutions, practices, and values. The central tenets of conservatism may vary in relation to the culture and civilization i ...

government of

Edward Heath Sir Edward Richard George Heath (9 July 191617 July 2005), often known as Ted Heath, was a British politician who served as Prime Minister of the United Kingdom from 1970 to 1974 and Leader of the Conservative Party (UK), Leader of the Conserv ...

, elected at the 1970 general election, had previously abolished the

Prices and Incomes Board A price is the (usually not negative) quantity of payment or compensation given by one party to another in return for goods or services. In some situations, the price of production has a different name. If the product is a "good" in the c ...

in November 1970, shortly after taking power, relying on

competition Competition is a rivalry where two or more parties strive for a common goal which cannot be shared: where one's gain is the other's loss (an example of which is a zero-sum game). Competition can arise between entities such as organisms, indivi ...

to keep prices down. At the same time, the

Industrial Relations Act 1971 The Industrial Relations Act 1971 (c.72) was an Act of the Parliament of the United Kingdom, since repealed. It was based on proposals outlined in the governing Conservative Party's manifesto for the 1970 general election. The goal was to stabil ...

was intended to rein in the

trades union A trade union (labor union in American English), often simply referred to as a union, is an organization of workers intent on "maintaining or improving the conditions of their employment", ch. I such as attaining better wages and benefits ( ...

s. The Conservatives' economic policy was not successful, and the government took a

U-turn A U-turn in driving refers to performing a 180° rotation to reverse the direction of travel. It is called a "U-turn" because the maneuver looks like the letter U. In some areas, the maneuver is illegal, while in others, it is treated as a m ...

. A 90-day freeze of pay and prices (as well as rents and dividends) was introduced on 6 November 1972 under the Counter-Inflation (Temporary Provisions) Act 1972. This was replaced by a

Price and Pay Code A price is the (usually not negative) quantity of payment or compensation given by one party to another in return for goods or services. In some situations, the price of production has a different name. If the product is a "good" in the ...

, which strictly limited increases, supervised by a new Price Commission and a Pay Board. The Conservatives were unable to keep power after the inconclusive

February 1974 UK general election February is the second month of the year in the Julian calendar, Julian and Gregorian calendars. The month has 28 days in common years or 29 in leap years, with the 29th day being called the ''leap day''. It is the first of five months not to ...

, and the Pay Board was abolished in July 1974 by the minority

Labour Labour or labor may refer to: * Childbirth, the delivery of a baby * Labour (human activity), or work ** Manual labour, physical work ** Wage labour, a socioeconomic relationship between a worker and an employer ** Organized labour and the labour ...

government led by

Harold Wilson James Harold Wilson, Baron Wilson of Rievaulx, (11 March 1916 – 24 May 1995) was a British politician who served as Prime Minister of the United Kingdom twice, from October 1964 to June 1970, and again from March 1974 to April 1976. He ...

, but the Price Commission continued. The scope of its powers were amended by the

Price Commission Act 1977 A price is the (usually not negative) quantity of payment or compensation given by one party to another in return for goods or services. In some situations, the price of production has a different name. If the product is a "good" in the c ...

and the

Price Commission (Amendment) Act 1979 The Price Commission was set up in the UK under the Counter-Inflation Act 1973, alongside the Pay Board, in an attempt to control inflation. The Conservative government of Edward Heath, elected at the 1970 general election, had previously aboli ...

. Controls on prices were abolished soon after the Conservatives under

Margaret Thatcher Margaret Hilda Thatcher, Baroness Thatcher (; 13 October 19258 April 2013) was Prime Minister of the United Kingdom from 1979 to 1990 and Leader of the Conservative Party (UK), Leader of the Conservative Party from 1975 to 1990. S ...

won the 1979 general election, and the Counter-Inflation Act 1973 was

repeal A repeal (O.F. ''rapel'', modern ''rappel'', from ''rapeler'', ''rappeler'', revoke, ''re'' and ''appeler'', appeal) is the removal or reversal of a law. There are two basic types of repeal; a repeal with a re-enactment is used to replace the law ...

ed by the

Competition Act 1980 Competition is a rivalry where two or more parties strive for a common goal which cannot be shared: where one's gain is the other's loss (an example of which is a zero-sum game). Competition can arise between entities such as organisms, indivi ...

External links

Government measures in the United Kingdom from 1945 to 1980
Appendix D t
''Innovation and Industrial Strength In the UK, West Germany, United States and Japan''
from the

Policy Studies Institute The Policy Studies Institute (PSI) is a British think-tank and research institute. PSI began in 1931 as Political and Economic Planning and became the Policy Studies Institute in 1978 on its merger with the Centre for Studies in Social Policy (est ...

, 1989 (PDF), 20th century in the United Kingdom 1973 establishments in the United Kingdom 1980 disestablishments in the United Kingdom Inflation in the United Kingdom {{economics-stub