Edward Heath’s government fell during the period of the 1973–1974 stock market crash. Heath’s Conservative ministry ended after the February 1974 general election produced a hung parliament, and he resigned as prime minister on 4 March 1974.
The political crisis unfolded alongside severe economic strain. Britain faced the 1973 oil crisis, high inflation, industrial disputes, energy shortages, and the miners’ strike. Heath’s government introduced a three-day working week to conserve electricity, making the economic turmoil highly visible to the public.
Heath called the election with the slogan “Who governs Britain?” but failed to secure a workable majority. Although the Conservatives won the largest share of the vote, Labour won more seats. Heath attempted to form a coalition with Liberal leader Jeremy Thorpe, but negotiations failed. Harold Wilson then became prime minister at the head of a minority Labour government.
The stock-market crash was not the sole cause of Heath’s downfall; the election result, strikes, inflation and the wider 1970s economic crisis all contributed. Margaret Thatcher and James Callaghan became prime ministers later, not during this government’s fall.