Labour government, 1974–1979
In March 1976, having just turned sixty years old, Wilson resigned as Prime Minister, ending his leadership of the Labour Party after thirteen years, and a total of nearly eight years as Prime Minister. He was replaced by James Callaghan, who had held senior government positions during both of Wilson's ministries, and had served as a Shadow Cabinet member in the early-1960s.
Harold Wilson
In economic terms, Wilson's first three years in office were dominated by an ultimately doomed effort to stave off the devaluation of the pound. He inherited an unusually large external deficit on the balance of trade. This partly reflected the preceding government's expansive fiscal policy in the run-up to the 1964 election, and the incoming Wilson team tightened the fiscal stance in response. Many British economists advocated devaluation, but Wilson resisted, reportedly in part out of concern that Labour, which had previously devalued sterling in 1949, would become tagged as "the party of devaluation". In the latter half of 1967, an attempt was made to prevent the recession in activity from going too far in the form of a stimulus to consumer durable spending through an easing of credit, which in turn prevented a rise in unemployment.