James Callaghan
Labour Premiership, 1973-1978, won election in 1973
Callaghan began to forge closer relations with European nations outside of France, such as West Germany, following further actions in the USA such as the Nixon Shocks which continued to alienate allies.
James Callaghan came to power following Gaitskell's poor health after his tenure as Prime Minister, and moved in to Downing Street following his 1973 election victory - following a pattern of electoral flip flops as both Conservatives and Labour struggled to deal with economic issues. This time, the election resulted in no clear Parliamentary majority - although Labour were the largest party, and a Labour-Liberal agreement with the 12 Liberal MPs gave Callaghan enough seats to govern a little more comfortably - but margins were fine enough that Callaghan had to accept some Liberal policies on core issues.
Callaghan would see the suspension of the Parliament of Northern Ireland, and introduction of direct rule (later replaced by the Northern Irish Assembly) due to the increasing levels of Unionist-Republican rivalry and violence. The escalating crisis saw the introduction of the British Army to the "province" to establish law and order. Wisely, the choice was to send over a large number of the Maltese in the British Army, to work hand in hand with English/Welsh/Scottish troops on the street due to the largely Catholic Maltese soldiers. The Maltese soldiers undermined the Provisional IRA's message as "primary defenders of the Catholic community", and were rapidly used operationally in Catholic & nationalist areas. Whilst a civilian agreement on the future of Northern Ireland governance was difficult to come by, the presence of the British Army in Northern Ireland did at least retain some element of peace in contested areas, and assisted in efforts to transform and modernise the Royal Ulster Constabulary.
Callaghan also introduced several smaller initiatives which survive today. The official name of the country became the "United Kingdom of Great Britain, Northern Ireland & Overseas Islands". Post codes were introduced to the United Kingdom in the 1970s, after being testing around Norwich, with each area of the United Kingdom - including the overseas regions and many of the remaining dependencies - receiving a post code to help simplify the post system. The first installations of cable television also occurred in the 1970s, with several cities receiving the first licenses to install cable television. However, despite all the forward steps, the United Kingdom was becoming stagnant economically, and being outpaced by the nations of the Common Market. In the Labour party, disagreement between hard-left and soft-left factions came to a head after Callaghan continued to keep Labour within the soft-left policies; many hard-left members left Labour to form the Socialist Party which continues today (*1).
The introduction of Malta, Gibraltar and the Seychelles, as well as the presence of Northern Ireland all with devolved administrations (even though suspended in the case of Northern Ireland) emboldened nationalists in Scotland and Wales, and a Royal Commission on the Constitution - later known as the Devolution Commission - had been created to explore devolution within Great Britain itself under Douglas-Home - but only reported back after Callaghan became Prime Minister. It advocated for further devolution, predominately to Scotland, Wales and the English regions, and was pounced on particularly by Scottish nationalists. After government studies, a 1976 White Paper on the future of Scotland, the result was the Scotland Act 1978 - a key policy of the supporting Liberal party in return for their Parliamentary support. This brought forth the establishment of a Scottish Assembly, along the lines of the Maltese Model (*2) but reflecting Scotland's position within Great Britain - subject to a referendum which would be held in 1979. The referendum passed with a "Yes" vote of almost 60%, with many attributing the success to the successful examples of devolution in Malta as providing a clear example of how it would work. Similar to Malta, elections for the Scottish Assembly would be based on a single transferable vote across multi-member constituencies of 3 seats.
Discussions continued over the role of the United Kingdom "East of Suez" indicated a reduction in the British role and presence in the Indian and Pacific oceans, but the situation improved when the Trucial States in the Persian Gulf agreed to opt-in to "dependency status", with the UK continuing to provide primarily defence and foreign relations in return for funding from the states, and basing rights there, although the principal British base in the area would remain at Masirah Island (Oman). This also conveniently provided justification for the Royal Navy presence in Malta and the Seychelles on the route to the Indian Ocean (thereby justifying the indirect economic subsidies from the armed forces), smoothing some debates over large workforce employed in the naval dockyards and related industries. An agreement with Malaysia, Singapore, Australia and New Zealand led to a shrinking of UK forces in the Indo-Pacific region, but the core base at Singapore was saved. The path ahead was clear though; more and more British colonies were becoming independent; Callaghan would soon grant independence to South Yemen, Botswana and a few others; as such the British global role was shrinking... but not dead yet by any means. New Royal Navy vessels were deployed globally, covering British interests in a wide variety of locations; in Belize in support of their independence (despite Guatemalan claims on the territory), against oil shipping to Rhodesia in an attempt to enforce sanctions against the state, mine clearing work in the Suez Canal, and supporting the Trucial States as a visible deterrence against any military action.
Retaining Singapore as a base was seen additionally as diplomatically necessary to avoid overly irritating the Americans and damaging a gently recovering "Special Relationship", whilst the US was embroiled in the midst of the Vietnam War, but the eastern half of the British Cypriot bases (Dhekelia) was to be handed back to Cypriot authorities with Britain only retaining the western base (Akrotiri), as part of British cost-saving efforts. Classified until later years, it also turned out that the US would part-fund the Akrotiri base in order to use an over-the-horizon radar to monitor Soviet air movements.
In the Caribbean, the collapse of the West Indies Federation in 1965 had been the sad finale of the WIF. Jamaica had left in 1962 prior to attempted unification of some economical aspects, whilst Trinidad & Tobago had then left in 1964. The remaining 8 islands, then attempted to continue with British backing, but 1965 saw the final nail in the coffin and the federation was disbanded., All islands by default returned to direct British oversight given the lack of independence, and began to pursue a variety of longer term strategies. Trinidad & Tobago, with an economy growing and focussed on their oil and gas markets had rapidly become independent in 1967. Jamaica fell under British jurisdiction once more and had gently enquired in to the possibility of British integration, but after a decidedly lukewarm reaction to it (usually pinned on the cost of a subsidy to an island with a population larger than Northern Ireland), Jamaica became independent in 1970. The remaining islands became the "West Indies Associated States", under the United Kingdom, due to their far smaller populations (*3).
The successful application of the Seychelles, and later integration of that nation in to the United Kingdom, provided a new idea for many of those West Indian islands. Almost all were less affluent in comparison with the United Kingdom, with fewer natural resources, and had observed the integration of Malta, Gibraltar and Seychelles to the United Kingdom with interest - and noted the success which those islands appeared to have had in the UK with strong devolution. Therefore, Barbados applied to join the United Kingdom in 1973, and like dominoes, most of the British territories in the Lesser Antilles applied. Notable exceptions to this, however, included the British Virgin Islands, Bermuda, the Bahamas and Turks & Caicos Islands - all saw their future in closer economic relations with North America. This combined group of integration seeking islands in the Lesser Antilles was a combined population of approximately 700,000 people, and would almost triple the overseas population (Malta, Gibraltar, Seychelles), with little gain for the United Kingdom. The first three had clear foreign policy and defence advantages for their integration, and had a population of roughly a few hundred thousand people. The UK saw this as an identity issue writ large; the small populations in Malta, Gibraltar and Seychelles were also largely white, and didn't particularly upset the UK demographics or balance of power in Parliament. Adding circa 700,000 people in the Caribbean would add a sizeable "Black British" demographic, and potentially add around 10 MPs to Parliament - easily enough to swing close elections one way or another.
Critics derided the United Kingdom, especially in the United States where many labelled it as "a new era of colonialism", or some openly advocated for the United States to block it under the "Monroe Doctrine". Pro-integration voices shot back "who are you to decry democracy because you don't like the answer?", and pointed to the Caribbean-initiated discussion. Either way, it jointly split opinion in the United Kingdom and the United States, and the US wasn't going to send forces in to the Caribbean to oppose one of it's closest allies in world politics just after fighting in Vietnam. The consequences of the 1973 election decided it; the tiny Liberal party backed Caribbean integration, the Conservatives opposed it "on economic and financial grounds" officially, and Labour were either split or gently supported it with reservations depending on which viewpoint you went by.
The 1973 election, and quasi-victory for Callaghan (and the Liberals as the supporting party), had opened the door for the Caribbean territories however, with Liberal support. It also balanced Callaghan's 1975 Immigration Act which would substantially reduce the right-of-abode for non-UK born citizens (ie. from the colonies). By admitting the substantially black-populated Caribbean territories to the United Kingdom, even over the reservations of the Treasury, Callaghan could deflect from political accusations of direct racism with the immigration reforms, by pointing to the West Indies and their future rights to live and work in the United Kingdom itself. Late 1977 saw legislation passed by Callaghan's government to allow the integration the islands, and would be duly confirmed by a referendum across the Associated States in early 1979. All the islands voted for integration to varying degrees, although given the hosting of the referendum as a single referendum over the entire British West Indies, it was unsure what would have happened if any of the islands had themselves voted against integration.
The integration process itself would be longer then previous overseas regions, with a 12 year integration plan, to slowly bring the Caribbean islands to UK standards, whilst the islands would receive 12 Members of Parliament following the work of the English Boundary Commission in lieu of a West Indies Boundary Commission, given the disparities of island population, with Anguilla, St Kitts, Nevis and Montserrat all having to be merged in to a single Westminster constituency. For local government reasons, the islands would form a single Home Nation within the United Kingdom named the West Indies, centred in Barbados, but with strong decentralisation to the individual islands to try and avoid the kind of political infighting seen previous in the West Indies Federation. Although the new Caribbean UK islands were unready for voting in the next election, a string of "introductory" by-elections would introduce MPs for the 12 UK West Indies constituencies in 1980.
However, with economic malaise widely setting in, public sector strikes on pay, and being forced to seek a loan from the IMF to tackle Britain's financial crisis, Callaghan had sunk to a new low for popularity with the electorate. Now with Scottish devolution and West Indies integration agreed, and governing with only Liberal support, and an Parliamentary election almost at time, Callaghan called for elections in mid-1978 following the West Indies integration. The following election got distasteful, with the some local Tory groups warning against a wave of Caribbean migration if if the integration was not aborted, using outright racist phrases in some cases such as Smethwick (*4), and some commenting on a "river of blood from this nation" should it occur. Callaghan duly lost as expected, but the return of the Conservatives did not derail the West Indies integration - they were now part of the United Kingdom.
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(*1) Reverse OTL split - instead of the Labour right splitting off to the SDP, as in this OTL following Gaitskell the Labour right have been in power, the Labour left have split off to form the Socialist Party.
(*2) The "Maltese Model" becoming the British template for devolution and the balance of powers between Westminster and the devolved nation. Scottish devolution is slightly higher then OTL, due to the existing examples of Northern Ireland as well as Malta, Seychelles & Gibraltar.
(*3) West Indies on their way in. I did wonder whether I could shoehorn Jamaica in, to give a real jolt of divergence from OTL, but I think it's a jump too far. Northern Ireland is a money drain at this point in time, and Jamaica will eclipse NI. The Treasury will have an absolute fit over it at a time when the economy is shaky anyway. Due to the East African Federation (mentioned in passing in earlier chapters) succeeding as Britain retreats a bit more slowly from Africa as no Suez, it also means that the expulsion of the Asians from Uganda hasn't happened here. So by 1974 and the UK deciding whether to agree to integration with the Caribbean, it hasn't already accepted tens of thousands of Ugandan Asians which makes it a little more open.
(*4) We all know which election slogans, but I can't bring myself to repeat those words even in an act of fiction here. They can stay in the past where they belong.