Chapter 13

Question 1

Why was there some optimism towards the Second Labour government?

Answer 1

Ramsay MacDonald was an experienced political leader, well known and respected both at home and abroad

Question 2

What did the 1930 Housing Act legislate?

Answer 2

Arthur Greenwood increased subsidies for house building and introduced new slum clearances

Question 3

What did the 1930 Coal Mines Act legislate?

Answer 3

It attempted to reduce miners’ bitterness by reducing working hours from eight to seven and a half hour shifts

Question 4

What did the 1931 Land Utilisation Act and Agricultural Marketing Act legislate?

Answer 4

It established a series of marketing boards which fixed prices and arranged supplies

Question 5

What did the 1931 London Transport Bill (law in 1933) legislate?

Answer 5

It created a public corporation responsible for providing cheap and efficient public transport

Question 6

How much did unemployment rise by in 1932 following the Great Depression?

Answer 6

To around 3 million unemployed

Question 7

How did Ramsay MacDonald attempt to solve the problems of unemployment?

Answer 7

He set up the Economic Advisory Council to provide advice, but remained wary of ‘new’ ideas

Question 8

What did Philip Snowden suggest to improve economic problems?

Answer 8

He wanted a balanced budget and to maintain the Gold Standard, although this would involve retrenchment

Question 9

What did Oswald Mosley suggest to improve economic problems, and what did he call it?

Answer 9

He called for an expansionary government spending policy, financing public works schemes and social reforms. Called the ‘Mosley Memorandum’

Question 10

When was the May Committee report published?

Answer 10

31st July 1931

Question 11

What did the May Committee detail and subsequently recommend?

Answer 11

It predicted a budget deficit of £120 million by 1932 and recommended cuts of around £96.5 million in public sector wages

Question 12

What cuts did the ‘Cabinet Economy Committee’ agree to on the 19th August 1931?

Answer 12

Cuts of around £56 million

Question 13

What was the vote of approval on 23rd August 1931?

Answer 13

11-9 (MacDonald tendered his resignation on the 24th August 1931)

Question 14

What new political government was agreed between all other major political parties and the king?

Answer 14

MacDonald was to continue as prime minister as head of a ‘National Government’ based on support from all main political parties

Question 15

Who were the only Labour cabinet members that followed MacDonald into the National Government?

Answer 15

Snowden, Thomas and Sankey

Question 16

What was Ramsay MacDonald accused of by Labour party members?

Answer 16

Needlessly setting up the May Committee, slow to respond to the Great Depression, failed to be honourable and resign, calling an election in 1931

Question 17

How many seats and what percentage of votes did the National Government achieve in October 1931?

Answer 17

67% and 554 seats

Question 18

How many seats and what percentage of votes did the Conservatives (and other National parties) achieve in 1935?

Answer 18

53.7% and 432 seats

Question 19

What financial policies did the National Government implement?

Answer 19

Came off the Gold Standard, aimed to balance the budget, made a 10% cut in unemployment benefits, cuts of public employees wages

Question 20

What trade policies did the National Government implement?

Answer 20

Set up the ‘sterling area’, passed the Import Duties Act 1932 to protect British industry, made trade treaties with various countries

Question 21

What industry policies did the National Government implement?

Answer 21

Providied government aid through the Special Areas Act of 1934, passed the Cotten Industry Act 1936 to close down non-profitable bills, gave loans to shipping companies