Night of The Long Knives (1962) - Aftermath

Aftermath

The speed and size of the reshuffle was unprecedented in British political history. The sackings were mockingly named after the 1934 Night of the Long Knives, when Adolf Hitler suppressed the Sturmabteilung supporters of Ernst Röhm. Macmillan was accused of having acted hastily and of being ungrateful in sacking his party's most loyal officials. His reputation of being calm and unflappable in a crisis was badly tarnished, and his ratings in opinion polls fell sharply. His political opponents made capital from this, Liberal MP Jeremy Thorpe observing that "Greater love hath no man than this, that he lay down his friends for his life." Lloyd was cheered on his next appearance in the House on 17 July, while Macmillan was faced with silence from his own benches, and jeers from the opposition. The opposition tabled a motion of censure against Macmillan, which was debated on 26 July. Macmillan faced divisions within his own party, Conservative MP Gilbert Longden congratulated him on keeping his head, while all around him were losing theirs. Former Prime Minister Anthony Eden and former Minister Nigel Birch also voiced their disapproval. Despite these voices of dissent, the reaction from most Conservative MPs was positive.

The damage was relatively short-lived. Macmillan's position improved within a few months of the affair. Butler was moved from the position of Home Secretary and appointed First Secretary of State. Macmillan made out that it was the equivalent of Deputy Prime Minister, a post that had lapsed after 1955. It was in actuality a demotion. Butler was tasked with overseeing the Central African Office, which moved him away from the more powerful state offices. With Lloyd replaced as Chancellor by Maudling, Macmillan pushed ahead with reflation. The more cautious Lloyd had rejected reflation because of the risk of ultimately damaging the economy with a balance of payments crisis. Maudling however was prepared to accept the devaluation of sterling and the placement of controls on imports to stave off this eventuality. By the time of the party conference Macmillan's popularity within his party had largely recovered. Maudling reversed Lloyd's austerity measures that November, following this up with cutting the tax on motor cars, and reducing the bank rate and purchase tax. In the Spring 1963 budget he abolished the Schedule A tax, one of the main causes of dissatisfaction with the Conservatives, and a move which Lloyd had resisted. Liberal fortunes, which rested largely on the unpopularity of these policies, declined thereafter. Labour recovered by early 1963 as the exceptionally harsh winter that year drove up unemployment and the economy unexpectedly faltered.

Macmillan regretted the way the reshuffle was carried out, and was particularly guilt-ridden over how he treated his former confidante, Lloyd. He arranged a meeting with Lloyd on 1 August 1962, before which Macmillan's private secretary, Tim Bligh, informed Lloyd that "He is spending all the time thinking of how to bring you back." Macmillan apologised to Lloyd, saying that he had made a mistake in not discussing it with him beforehand, and that he was rushed, his hand was forced. He again mentioned a conspiracy, suggesting that "Butler had been plotting to divide the party on the Common Market, and bring him down."

Despite the upswing in the Conservatives' fortunes which followed after the disapproval over the reshuffle abated, the Party suffered further problems. Macmillan's government was rocked by the Vassall and Profumo Affairs the following year, and Macmillan decided to step down in October 1963, citing ill-health. He was replaced as Prime Minister by Sir Alec Douglas-Home, but the Conservatives were defeated in the 1964 general election by Labour under Harold Wilson.