1.1.2- The National Government + rise of labour and consensus

Question 1

Why was the National Government formed

Answer 1

1. The outcome of the 1929 General Election.
2. Weaknesses of the minority Labour government of 1929-31.
3. Economic problems caused by the Great Depression.
4. Role of Ramsay MacDonald.

Question 2

What was the outcome of 1929 election

Answer 2

• On the back of an uninspired ‘Safety First’ election campaign, the Conservatives did not do enough to retain office as a single party government.
• The results of the General Election were unusual in that the Conservatives won the largest share of the vote with 38.2% but this was not translated into an overall majority of seats as they won 260 of the 605 seats contested while Labour won 287 seats.
• Therefore, the Labour Party, led by Ramsay MacDonald returned to power, in a minority government supported by 59 Liberal MPs.

Question 3

What did the 1929-31 government try to do?

Answer 3

• The Labour Party had been in power, only once before – during 1924.
• This period in office remained an unhappy memory as Prime Minister, Ramsay MacDonald, was
  forced to make harsh economic choices that affected the poorest voters as well as handle the threat
  of industrial action.
• It was also dependent on Liberal support which blunted its radical programme of welfare legislation.
• The Labour government quickly lost support and was forced to call an election, which it lost heavily
  to the Conservatives.
• Returning to office, MacDonald wanted to pass social welfare reforms which he was unable to do in 1924.
• Therefore, he quickly developed a working relationship with the Liberal MPs and was able to pass a number of social reforms, which included The 1930 Housing Act and The** Coal Mine Act 1930**.
• However, MacDonald warned in 1930 that Britain was going to go through ‘an economic blizzard’ over the next two years – he was right and the ‘blizzard’ blew away his government.

Question 4

Why was the 1931 budget significant

Answer 4

• By 1931, the Labour government was struggling to finance its spending commitments, particularly finding money for their welfare reforms.
• Britain needed loans from the US and France - however international bankers demanded a balanced budget as a condition for the loans
• The government put together plans to cut spending and raise taxes to balance the budget. The centrepiece of these proposals was to cut unemployment benefit by 10% which were keenly supported by Prime Minister, MacDonald, and his Chancellor, Philip Snowden. They argued that these proposals would stabilise the pound despite causing hardship to many within the working class.
• These proposals split the Labour Party and after much political wrangling resigned as the party of government on August 24th 1931 and moved to expel MacDonald and Snowden from the party with Arthur Lansbury taking over.

Question 5

What was the role of Ramsay McDonald in creating National Government

Answer 5

• MacDonald was a Prime Minister** without a party and was ready to resign**. However, both King George V and the Conservative Party wanted MacDonald to continue as Prime Minister – but for very different reasons.
• King George V appealed to MacDonald’s patriotic duty and argued that by resigning MacDonald would make things even more unstable at a time of great difficulty.
• The Conservatives, led by Stanley Baldwin, were happy to allow MacDonald continue as Prime Minister thinking that MacDonald would bear the brunt of any unpopular economic measures clearing the way for the Conservatives to take power at a later date.
• As a result, MacDonald announced that he would continue to serve as Prime Minister leading a ‘National Government’ to face the emergency.

Question 6

What happened in General Election of 1931

Answer 6

• MacDonald called for an election in October 1931. He was worried that this would split the Labour Party – some had joined him to serve as part of the National Government while the rest formed a separate Labour Party following George Lansbury.
• The Liberals were also similarly spilt.
• The Conservatives, who had thrown their lot in with the National Government, insisted on an
  election as they wanted such a coalition government to tackle the crisis to be voted by the people.
• The outcome of the 1931 General Election was an overwhelming** victory for the National
  Government** winning 554 seats with the Conservatives holding 473 of them.
• Labour did extremely badly in the elections - winning just 52 seats

Question 7

What challenges did the leaders of the National Government face between 1931 and 1945

Answer 7

• Economic threats – each leader had to deal with the aftermath of the Great Depression.
• Opposition – each leader had to deal with the opposition the House of Commons provided. This was
  mainly through the Labour Party.
• Rise of extreme politics – each leader faced the potential rise in extreme politics, particularly from
  the right and Oswald Mosley.
• Foreign policy threats – each leader had to deal with the growing threats from abroad from, the
  issue of rearmament, through to appeasement and war.

Question 8

Failure of extremism in National Government

Answer 8

Extremist failed to gain support in Britain, partly due to the success and unity of the National Government
Oswald Mosley and the BUF
o Oswald Mosley forms the British Union of Fascists (BUF) in 1932 with the aim of emulating Mussolini style leadership
o BUF was racist and anti-Semitic
o funded by aristocrats
o 50 000 members in 1930s
o October 1936 ‘Battle of Cable Street’ ; BUF march through East London (home to many Jews and Irish
immigrants) turned into a violent clash
o WW2 made BUF even more unpopular; Mosley was imprisoned for three years until 1943 and the BUF
was banned

The Communist Party of Great Britain
o Far right more successful than Mosley
o CPGB gained one MP in 1924 and 1935
o However only gained a maximum of 0.4% of the vote; British electorate rejected communism
o Traditions and strength of TU and Labour prevented communism from taking off
o CPGB used ‘entryism’ - tried to infiltrate the Labour party to steer their ideas further to the left (Labour
banned CPGB members from joining Labour to support this)
o CPGB puppets of Russia, were against WW2 until Germanys invasion of Russia in 1941, funded by the
USSR
o They gain some support after Russia helps to defeat Nazi Germany

Question 9

National Government Consesus 1945-79

Answer 9

The post-war consensus is a name given by historians to an era in British political history which lasted from the end of World War II in 1945 to the election of Margaret Thatcher in 1979.
The post-war consensus can be characterised as a belief in:
* Keynesian economics
* A mixed economy
* Nationalisation of major industries
* The National Health Service
* Commitment to full employment
* A welfare state in Britain; social security and national insurance
* Introduction of nuclear weapons

Question 10

why did WW2 set the stage for consesus

Answer 10

• The National Government proved the Ministers from rival parties could work together and that a broad agreement on key policies could be reached.
• Success of collectivism – an approach where certain problems are tackled by taking away some rights for the common good.
• The war changed the role of government, as the state was forced to take more control– Emergency Powers Act of 1940
• There was a shift from a mainly free-market economy to a more mixed one, where the government used rationing, the Essential Work Order, conscription and censorship all in a bid to engage Britain in a total war– by 1945, 1/3 of citizens were taking in war-related work.
• The led to the Beveridge report in 1942 – in the report Beveridge envisioned a welfare state that could care for a person from cradle to grave. His ideas were hugely popular – the report sold 635 000 copies- and Labour’s promise to fulfil the report was a huge contributing factor in them winning the election.

Question 11

Why did Labour win a landslide in 1945 Election

Answer 11

• Leadership - Atlee portrayed himself as a ‘man of the people’, though Churchill led the country through WW2 people were unsure whether he was the right leader for peacetime. During WW2 Atlee had managed the home front, showing that himself and the Labour party were capable leaders.
• Campaigns - Labour broke off the wartime coalition after the war to force an election, campaigned on the slogan ‘let us face the future’ and campaign posters centred around the British people, with pictures of women of soldiers accompanied by the text ‘Labour for him’ or ‘Labour for her’. Atlee spent a lot of time touring the country. Churchills campaign was lacklustre as he was so confident in him victory after winning the war - Conservative slogan ‘let’s finish the job’ Churchill’s spiteful ‘Gestapo’ speech was seen as distasteful and poorly judged.
• Policies - Labour promised to implement the policies of the extremely** popular Beveridge Report, Churchill rejected the report and did not have a clear strategy for post war recovery. Labour’s manifesto seems more specific, ambitious, detailed** and thought through
• Public Mood - Public wanted a change after the harsh war years, they associated the Tories with the high unemployment of the 20s and 30s and failed appeasement

Question 12

Why did labour lose the 1950 and 1951 election

Answer 12

• Growing dissatisfaction over continued rationing.
• Austerity (after 1947) wasn’t being perceived as bringing economic recovery quickly enough.
• Taxation at 45% at a standard rate was seen as too high.
• Labour Ministers were tired, beginning to divide and were disillusioned; Labour became divided
  after the Bevanite revolution in 1951, and over the issue of nuclear weapons and the Korean War.
• Conservatives were seen as a united party – particularly over the nationalisation of iron and steel
  which impressed the electorate.
• The** Conservative 1947 Industrial Charter** showed that Conservative were willing to adapt and adopt
  consensus policies
• Also, 1950 saw an influx of bright young Conservative politicians.

Question 13

Key policies in Conservative government after 1951 election

Answer 13

• Housing (under Macmillan) 1951-1955
• Conservatives made a commitment to 300,000 new houses a year, which they achieved. 1953:
  327,000 were built 1954: 354,000 were built
• 1952 – Housing subsidy increased from £25 to £35 per home - Supported by Butler. Mortages were made avaliable
• Still 80% of house building was state.
  Iron and steel were largely denationalised in 1953
• War time rationing ended 1954
• Health
• 1959 Metal Health Act - Modernised treatment to be humane.
• 1962 plans were unveiled for 90 new hospitals to be built within the next 10 years * Education 1957-1964
• Pledged that 6000 new schools would be built
• 1963 Robbins report suggested need for more universities, so 7 new universities were
  established
• Allowed local authorities to set up comprehensive schools if they so choose o 10 Technical colleges (for further study) were set up

Question 14

evidence of consensus in Conservative government in 1951

Answer 14

The Conservatives adhered to many of Labour’s policies; they continued to fund and improve the NHS, they were committed to the mixed economy and full employment and they managed the economy using Keynesian style economics.
✓ No changes made to Nye Bevans NHS
✓ Welfare state expenditure continued to grow in real terms. 19.3% of GDP was spent on it in 1964, up
from 16.1% in 1951
✓ The term Butskellism (a mixture of the names of Tory Chancellor R.A. Butler and Labour party leader
Hugh Gaitskell) was coined to describe the almost identical economic policies of the two parties.

Question 15

evidence against consensus of Conservative party in 1951 onwards

Answer 15

• The Conservatives were criticised for their use of ‘stop-go’ economic policies, inflation begins to be a
  problem
• 1959 Chancellor, Treasury minister and Financial Secretary all resigned because they believed the
  government was spending too much; believed inflation a bigger threat then unemployment and wanted
  spending cuts, tax rises and end of subsidies.
• The Conservatives also reversed nationalisation of steel and iron, with the support of the people.

Question 16

evidence that conservative government was 13 golden years

Answer 16

• Housing was perhaps the most remarkable achievement - 6000 new schools, 11 new universities and existing ones were expanded
• Leading member of UN and NATO by 1964
• Britain was developing closer ties to the USA.
  Involved in the Test Ban Treaty Talks, 1963.
• 1950s: Nearly 3% growth per annum
• 1951-1964 – Britain’s economy grew 40%
• Consumer spending rose by 45%
• Families ate better and had more consumer * and luxury goods
• NHS – its work was improved by the Mental * Health Act of 1959
• Inflation around 3/4% for most of the 13 years, unemployment was below 2%
• Subsidies to help modernise and support British * farming
• Wages rose by 72%
• Significant improvement in wages and the *
  standard of living for all. By 1964 91% owned a
  TV, Car ownership had quadrupled to 8 million * by 1964.

Question 17

evidence for conservative dominance was 13 years wasted

Answer 17

• Britain’s economic rivals sent more young people to university.
• Failure to tackle inflation for fear of increasing unemployment. Inflation 3/4%
• Humiliation at Suez and the failure to find a place in the world
• Economic growth was fairly low in Britain (2.4% compared with 5.6% in Italy and 5.1% in Germany)
• Productivity was the lowest in Western Europe.
• Share of world exports in manufactured goods fell from 25.5% in 1951 to 13.9% by 1964.
• The economy – ‘Stop, Go’ hampered growth - The policy only worked in the short term and contributed to a build-up of inflationary pressure and ‘stagflation’
• Stop Go prevented investments and caused the balance of payments to be imbalanced (too many imports).
• 1964: Labour inherited a balance of payments deficit of £750 million.
• British application to join the EEC vetoed.
• Lack of investment in manufacturing. Germany and Japan did better in these years.
• Debate over grammar and comprehensive schools and the 11plus. Not resolved. Became more problematic after 1970.

Question 18

End of conservative dominance

Answer 18

• Conservative popularity had declined by 1962
• Increased consumer spending had led to inflation and a balance of payments deficit
• People had become more opposed to the ‘establishment’
• Failure to gain entry to the EEC in 1963
• Night of the long knives makes Macmillan seem ruthless
• Profumo affair - Conservative Secretary of State for War John Profumo discovered to have had an affair
  with Christine Keller, who had also been sleeping with a soviet naval attache (and suspected spy). Profumo had denied the affair in Parliament, and when the truth was exposed the Conservatives image was badly damaged and Macmillan’s self-confidence was shattered.