Attlee's Labour Government, 1945-1951

Question 1

Economic Issues

Answer 1

Debts of £4198 million, fall in exports of 60%, and increasing cost of overseas military commitments
Hugh Dalton- $6000 million loan from USA
But forced to increase defence spending from £2.3 to £4.7 billion + develop nuclear weapons
Spending over 14% of GDP on defence by late 40s

Question 2

Centralised Planning

Answer 2

Established Economic Planning Council (1947)- power to control production levels, efficiency of industry, and import/export balance.
Cripps placed new controls on maximum level of rent, profits, and interest rates

Question 3

Devaluation

Answer 3

1949- effort to increase overseas trade + make British goods easier to sell abroad, pound sterling devalued from $4.03 to $2.80

Question 4

Control Measures

Answer 4

Austerity enforced by Chancellor, Stafford Cripps
Wartime rationing on tea, sugar, butter, and bacon extended into 1951
New items such as bread + potatoes rationed between 1946-48
Coal rationed 1947-48
Building materials only on essential construction projects

Question 5

Wage Restrictions

Answer 5

Asked trade unions to adopt voluntary wage freeze, wouldn’t ask for further wage increases until economy had recovered.
Unions saw this as an attack

Question 6

Nationalisation

Answer 6

Nationalised Bank of England (1946), air transport (1946), Cable and Wireless (1947), coal mining- National Coal Board (1947), transport- British Transport Commission (1948), electricity and gas (1948), iron and steel (1949)
Bitter Tory opposition

Question 7

Social Reforms and the NHS

Answer 7

$15 billion Marshall Plan US loan- led to creation of welfare state
Family Assistance Act (1945), National Insurance Act (1946), creation of NHS (1948), Education Act (1945)- compulsory free education for all