DBWI: A Lib-Lab Pact in 1977?

As we know, British Prime Minister Jim Callaghan tried to stitch together a confidence and supply deal with the Liberals in March 1977, but failed because the Liberals demanded a referendum on proportional representation.

What if Callaghan succeeded in creating a Lib-Lab Pact? The obvious answer is that you avoid the May 1977 election, and Thatcher's short, unhappy tenure, but how do you think Callaghan would have managed if he'd had more time?
 
well he would only have had another two years in power. I'd probably say he would call an election in 78 due being higher in the polls due to not suffering the humiliation of being able to get a deal. i think he could have beaten thatcher in 78 as shown by her position in power she wasn't exactly in a position of security
 
If Callaghan hangs on, does that butterfly away the Foot government?

Either he does win in 1978, which means by the time he steps down Foot will also be too old, or he loses to the Tories and the same thing happens.
 
I think that does butterfly Foot - in OTL there was only a brief window for Foot to carry out his reforms, and he took it. ITTL, I'd imagine Callaghan would set things up for Healey (and the immediate outrage over the IMF thing would have faded - basically, 1977 was the worst possible time for Healey). A more right-wing Labour...

If Callaghan made a decent fist of a Lib-Lab Pact, I honestly can't see him losing to Thatcher - it wouldn't surprise me if the Tories found some excuse to knife her even before a 1978 or 1979 election. I seriously struggle at seeing how you can put the woman in Downing Street in any other circumstances than OTL.
 
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