Callaghan, (Leonard) James

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British Labour politician, prime minister and party leader 1976–79. He became prime minister in April 1976 after the unexpected retirement of Harold Wilson and he headed a minority government, which stayed in power from 1977 through a pact with the Liberal Party. A Labour moderate, he held power at a time when trade unions and the party's left wing had increasing influence, and he was forced to implement austerity measures agreed with the International Monetary Fund (IMF). Callaghan was previously chancellor of the Exchequer 1964–67, home secretary 1967–70, and foreign secretary 1974–76.

As chancellor of the Exchequer 1964–67, he introduced corporation tax, capital gains tax, and selective employment tax, and resigned after being forced to devalue the pound sterling. As foreign secretary in 1974, Callaghan renegotiated the UK's membership of the European Community (now the European Union). His 1976–79 minority government gradually lost strength through by-election defeats and was faced with high levels of inflation, rising unemployment, and industrial unrest. From 1977 Labour stayed in power through a pact with the Liberals. Strikes in the so-called ‘winter of discontent’ 1978–79 led to the government losing a vote of no confidence in the Commons in March 1979, forcing Callaghan to call an election in May 1979, when his party was defeated by the Conservatives, led by Margaret Thatcher.

Blue represents the black population and links with Africa. Red stands for those of mixed race. The original blue and red flag was based on the French tricolour. Effective date: 25 February 1986. >>