Committed to ending incomes policies, ‘disengaging’ from an interventionist industrial policy and reforming industrial relations, by 1972 Heath and his ministers had introduced a new incomes policy and an Industry Act which made public money available to support struggling firms.

In addition, the pound was floated, when the Bretton Woods system of pegged exchange rates ended, and the banking system was comprehensively overhauled. Ironically, it was an industrial relations issue (the miners) which led to Heath’s downfall.

On the positive side, the UK joined the European Economic Community in 1973 but by this time the economy was booming.

Underpinned by a government more concerned about unemployment than inflation, expansionary monetary and fiscal policies led to soaring spending and GDP growth accelerating to over 7%.

Not surprisingly, the balance of payments went heavily into the red (there was a record deficit in 1973 and again in 1974) and inflation climbed into double figures. It was Maudling’s ‘dash for growth’ revisited.

Then, to add fuel to the flames, oil prices quadrupled in the space of a few weeks in the autumn of 1973, creating more problems for the balance of payments and inflation.