Editing Denis Healey (section)

===Chancellor of the Exchequer===
Healey was appointed [[Shadow Chancellor]] in April 1972 after [[Roy Jenkins]] resigned in a row over the [[European Economic Community]] (Common Market). At the Labour Party conference on 1 October 1973, he said, "I warn you that there are going to be howls of anguish from those rich enough to pay over 75% on their last slice of earnings".<ref>''The Times'', Tuesday, 2 October 1973; p. 1; Issue 58902; col A.</ref> In a speech in Lincoln on 18 February 1974, Healey went further, promising he would "squeeze property speculators until the pips squeak". He alleged that [[Lord Carrington]], the Conservative Secretary of State for Energy, had made £10m profit from selling [[agricultural land]] at prices 30 to 60 times as high as it would command as farming land.<ref>''The Times'', Tuesday, 19 February 1974; p. 4; Issue 59018; col D.</ref> When accused by colleagues including [[Eric Heffer]] of putting Labour's chances of winning the next election in jeopardy through his tax proposals, Healey said the party and the country must face the consequences of Labour's policy of the [[redistribution of income and wealth]]; "That is what our policy is, the party must face the realities of it".<ref>''The Times'', Thursday, 18 October 1973; p. 2; Issue 58916; col C.</ref>

Healey became [[Chancellor of the Exchequer]] in March 1974 after Labour returned to power as a minority government. His tenure is sometimes divided into ''Healey Mark I'' and ''Healey Mark II''.<ref>Michael Stewart''The Jekyll and Hyde Years: Politics and Economic Policy since 1964'' (1977).</ref> The divide is marked by his decision, taken with Prime Minister [[James Callaghan]], to seek an [[International Monetary Fund]] (IMF) loan and submit the [[1976 sterling crisis|British economy]] to IMF supervision. The loan was negotiated and agreed in November and December 1976, and announced in Parliament on 15 December 1976.<ref>[http://www.nationalarchives.gov.uk/documents/osp9.pdf] {{webarchive|url=https://web.archive.org/web/20071120044611/http://www.nationalarchives.gov.uk/documents/osp9.pdf|date=20 November 2007}}</ref><ref>[http://www.group30.org/pubs/pub_0634.pdf] {{webarchive|url=https://web.archive.org/web/20080820045641/http://www.group30.org/pubs/pub_0634.pdf|date=20 August 2008}}</ref> Within some parts of the Labour Party the transition from Healey Mark I (which had seen a proposal for a [[wealth tax]]) to Healey Mark II (associated with government-specified [[Wage controls|wage control]]) was regarded as a betrayal. Healey's policy of increasing benefits for the poor meant those earning over £4,000 per year would be taxed more heavily. His first budget saw increases in [[food subsidies]], [[Pensions in the United Kingdom|pensions]] and other benefits.<ref>Eric Shaw, ''The Labour Party since 1945'' (1996).</ref>

When [[Harold Wilson]] stood down as [[Leader of the Labour Party (UK)|Leader of the Labour Party]] in 1976, Healey stood in the [[1976 Labour Party leadership election|contest to elect the new leader]]. On the first ballot he came only fifth out of six candidates. However, he also contested the second round, coming third of the three candidates but increasing his vote somewhat.