The results of the 1975 Referendum, giving a two-to-one majority in favour of remaining a member of the EEC, damaged Shore along with the other 'dissenting ministers'. His inclination to support an autarkic economy ruled him out of consideration as a new Chancellor of the Exchequer, but Shore was moved to Secretary of State for the Environment by new Prime Minister James Callaghan in 1976. This move was a promotion but involved him in considerable political controversy. He called on local authorities to cut spending and waste, and criticised the trade unions representing local authority staff for failure to support modernisation. Shore also launched a campaign to revitalise the inner cities of Britain.