He didn't really have the stomach to deal with the consequences, similarly you have the problem that the unions are at the peak of their power and Heath has organised no way to beat them.
You'd need a POD to change those to factors to make it work really
It's funny, but Heath was the
only person to beat the Postal Workers Union in a strike action. I think that Heath, had he managed to cling on in 1974 may have be able to establish a more moderate version of neo-Liberalism within the Conservative Party. Whitelaw, Howe could have also managed it, Keith Joseph was only ever a kingmaker, I can't really see him becoming leader at any point.
However, a possibility would be Callaghan winning an election in 1978 and resigning soon after. If we were to get David Owen as Prime Minister or Chancellor, it is possible that we could see a similar situation to Roger Douglas in New Zealand, in other words, a nominally left-wing party following a radical right-wing economic policy. It is unlikely, but possible.