13.3.1 Reasons for the National government

Question 1

What happened in the July 1931 banking crisis?

Answer 1

Foreign investors withdrew their gold / investments

Bank borrowed to uphold the value of the £

Question 2

How did Snowden and MacDonald respond to the May Committee’s recommendations?

Answer 2

They supported the May committee and wanted to balance the budget

Question 3

How did the Cabinet, the Conservatives and Liberals and TUC respond to the May Committee?

Answer 3

Cabinet agreed to £56m in cuts
Conservatives and Liberals agreed to cuts but opposed taxation
TUC and Labour disagreed with cuts but agreed to taxation

Question 4

What happened when MacDonald went to see the King?

Answer 4

MacDonald went to see the king to resign but persuaded him to form the National Government ‘country before party’

Question 5

What was Labour’s response to MacDonald creating the National government?

Answer 5

MacDonald was expelled from the Labour party and branded as a traitor