1 changing political and economic environment 1945-1951 Flashcards
the rise of consensus politics and political challenge
in economic terms, why did the consensus occur?
- to moderate the left with policies made by Labour being continued by the Conservatives
the rise of consensus and political challenge
policy eg.s from both conservatives/labour as part of the PWC?
- full employment commitment
- foriegn and defence policy that sat on the right (investing in nuclear weapons)
1945 General Election
why did the election occur?
- following the defeat of Nazi Germany, the Labour party signalled its intention to withdraw from the coalition
1945 General Election
Churchill: expectations? manifesto? reality?
- expected to be rewarded by a grateful British public for his wartime service
- manifesto focused heavily on foreign policy
- public had bitter memories of conservative pre-war governemnts and economic hardship
1945 General Election
labour manifesto: what did it focus on?
- ‘let us face the future’
- promised action on housing, jobs, social security, and a NHS
- landslide vicers
1945 General Election
results?
- cons: 39.7% of vote
- lab: 47.7% of the vote
Labour Government 1945-1951
main reforms of Labour
- NHS
- National Insurance Act
- National Assistance Act
- Housing Act 1949
- implementation of the Butler Act
Labour Government 1945-1951
labour majority in the next election (1950) was this a shock?
- slashed to just 5 seats
- despite polling over one and a half million more votes than the cons
reasons for decline in labour’s vote
constituencies?
-
- no. of labour safe seats decreased due to a redraw of constituency boundaries
reasons for decline in labour’s vote
class?
middle + working
- decline of popularity in the middle classes
- working class shrank, with 78% of British society identifying themselves as working class in 1931, and only 72% in 1951
reasons for decline in labour’s vote
main causes for disatisfaction with Labour?
RAT
- rationing: continued after the war, and bread which was not restricted during the war was in peacetime
- austerity: lab party could not revive the economy
- taxation: standard rate of tax in 1949 was 9 shillings in every pound, and the top rate of marginal tax for high earners was 90%
1951 General Election
what did the labour party look like by 1951?
exhausted, divisions, deaths?
- tired.
- many of his most able ministers fell ill or died in office
- Foreign Sec Bevin died in 1951
- Chancellor Cripps resigned in 1950 due to ill health
- labour was also divided over budget cuts
1951 General Election
what did the Korean War do to labour?
- 1950 Britain became involved to protect South Korea as part of the UN
- this meant a huge increase in military spending nad new chancellor Hugh Gaitskell anounced ‘austerity budget’ in 1951
1951 General Election
‘austerity budget’: what did it involve? what was the result of disagreements?
- Hugh Gaitskell announced it
- involved prescription charges for glasses and dentistry
- Bevin resigned
- Attlee lacked authority
1951 General Election
what was the result?
- lost to the Cons
- labour won more votes but fewers seats due to FPTP
- lab votes were concentrated
- Cons: +24
- Lab: -20
post-war austerity 1945-1951
how much debt had WW2 accumulated in Britain? what was the daily cost?
- £4b with the USA
- £70m every day with interest
post-war austerity 1945-1951
what was the affect of the war on British trade? why?
- british economy contracted by 1/4
- trade declined by 2/3
- German U boats sank UK shipping
- US manufactureres dominated post-war markets
post-war austerity 1945-1951
JMK: what did he try and convicne congress to do? what worsened Britain’s situation?
- to give Britain a non-repayable gift of recognition for Britain’s wartime efforts…as a loan
- congress declined
- the winter of 1947 worsened things and reintroduced rationing
Britain’s expensive world role
what did George Marshall think of Europe in 1948? What was the result of this?
- proposed offering extensive loans to war ravaged Europe, or they might fall to communism
- Britain was one of the biggest recipients of Marshall Aid in 1948
- recieved up to £2.7b in loans
Britain’s expensive world role
What did Britain use Marshall Aid for?
- failed to use marshall aid to reinvest industry
- instead Britain used it to pay for general expenses home and overseas
Britain’s expensive world role
what were Britains international commitments? What did they continue with as a result?
- Britain continued with national service until 1965
- involved in conflicts in Greece, Korea, Malaya and Kenya throughout the 40s/50s
- Britain also had a large army based in Germany and the responsibility of keeping civilians in the German zone of occupation fed and supplied
Britain’s expensive world role
What was Britain’s investment in infrastructure in 1950? compared to Germany and Japan?
- ours was 9% of the GDP
- Germanys was close to 20%
Nationalisation
what was nationalisation? What was the hope?
- the state taking control of coal, power, railways, ship building and banking
- it was hoped nationalisation would allow for full employment
- nationalised industries would not have to shed jobs during economic downturns
Nationalisation
nationalisation acts: including industry, money, travel, power, and resources.
- Coal Industry Nationalisation Act 1946
- Bank of England Act 1946
- Transport Act 1947
- Electricity Act 1947
- Gas Act 1948
- Iron and Steel Act 1949
Nationalisation
what did the government do as a result of nationalisation?
- paid the shareholders
- Eg. Private rail companies were bought from their owners £1 billion
Labours economic record, 1945-1951
How was it strong? Employment, trade, economy?
- full employment was achieved in a 4 year period between 1947-1951
- total unemployment reduced to just under 300,000
- Britain boosted its world trade and reduced its BofP deficit.
- % of world trade dominated by Britain grew from 17% in 1939 to 20% in 1950
- economy grew 4% each year after 1948
Industrial Relations, 1945-1951
where were union leaders appointed?
- union leaders had been appointed to numerous governemnt bodies on wages, industry, and social policy
- this continued after 1945
- union leaders had more access to decision making and their views were frequently heard
Industrial relations, 1945-1951
In 1939 union leaders sat on…? By 1949?
- 12 government committees
- 60 committees
Industrial relations, 1945-1951
In 1945, how many Labour MPs were sponsored by the unions?
- 120 Labour MPs
Industrial relations, 1945-1951
How did Labour restore union power?
by repealing 1927 Trade Disputes Act
- restored the union movemenmt much of its power in industrial disputes
Industrial Charter
what did the pamphlet indicate to the conservatives?
- the party recognised that growing union membership and a desire for the welfare state meant they had to adopt Labours pro-union approach
Industrial Charter
how did Conservatives therefore approach this?
- human relations approach
- dealing with workplace disputes was better than strike action
- by considering the feelings/opinions of the workers, strike action would be avoided
- paternalist approach of running buisiness would ensure the interests of all parts of industry from the boardroom to the shop floor coudl be protected
