Political and Economic Change Flashcards
What year was the Maurice debate
1918
What was the Maurice debate about? Significance?
General Maurice wrote a letter to Lloyd George accusing him of lying to Parliament about the number of British troops.
Asquith led the attack on Lloyd George - split the Liberal party
When was the Representation of the People Act?
1918
Significance of the Representation of the People Act for the Liberals?
Sparked the rise of the Labour Party - 80% of the electorate now working class - led to the decline of the Liberals.
Significance of the 1918 General election?
Coupons issued to supported - Conservatives needed Lloyd George’s prestige. Lloyd George needed the Tories due to the split. Asquith Liberals ousted.
When was the Leamington Conference
1920
What happened at the Leamington Conference
Asquith Liberals tried to kick LG out the conference - he wanted the coalition with the Tories to be a permanent centre party. This split never healed.
What was the cash for honours scandal?
Corruption un LG’s government - sold knighthood - amassed a huge fund but didn’t share it with Asquith liberals.
Impact of the Cash for Honours Scandal?
Without the money, the liberals couldn’t field candidates for the 1922, 1923 and 1924 general elections
What was the Chanak Incident?
Lloyd George blamed for warmongering against Turkey - September 1922. Lead to LG’s resignation and decline of liberal MPs winning the elections.
What was the 1922 Carlton Club meeting
Meeting of the Tory MPs on the coalition - they decide to leave the coalition - Liberals lose their foot on power. Labour steal votes from the liberals not the Tories.
Why was the 1923 election significant
Labour win more seats in parliament in comparison with the liberals - becoming the second biggest party in parliament.
How many seats did Labour win in 1923 in comparison with the Liberals?
191 compared with 159
What was the significance of the 1924 election
Labour is elected with Ramsey Macdonald as prime minister. Labour’s position as a major party is secured.
How many seats do the Liberals lose in 1924
119 seats
How did LG alienate Asquith’s supporters?
Gave the top parliamentary jobs to his own supporters out of spite.
What mistake did Asquith make in 1923?
Backed a minority Labour government - Macdonald acted with economic caution and impressed everyone with his foreign affairs.
How was Stanley Baldwin a threat to the Liberals?
Rebranded the Tories - presented himself as the man of the people - used the radio - promoted harmony between workers and employers.
How did Baldwin win over LG’s supporters at Carlton Club?
Adopting protectionism in 1923 - he later dropped it in 1924 after voters rejected it.
What issue united all liberals that was dropped by Baldwin?
Free Trade
Why was Ramsey Macdonald forced to resign?
A vote of no confidence - however Labour still won the 1929 election due to his economic prudence
How did WWI cause the decline of the Liberals?
They were forced to take illiberal measures - rationing, economic controls, conscription. Made people believe that LG was betraying liberal values.
How did the Liberals become cemented as a third party?
FPTP - favours a two-party contest - Liberals couldn’t convert electoral support into parliamentary seats.
Who was prime minister in 1922?
Bonar Law - replaced by Baldwin in 1923
What was the 1929 election called and why?
Flapper election - following the 1928 Representation of the People Act - all women over 21 could vote.
Who won the most seats in 1929?
Labour but did not have a majority - Liberals had the balance of power - Macdonald Prime minister.
How much did Macdonald try to cut unemployment benefits by?
10% - result of the financial crash - government debt
Why did Macdonald decide to resign?
Unions and some of his party refuse to back the cut of unemployment benefits.
Why was the National Government formed?
Macdonald convinced to remain as PM with Tory and Liberal support. He was expelled by the Labour party but kept some Labour backing.
What was the outcome of the 1931 election?
National government gains the biggest landslide in history of 554 seats. Conservatives were the biggest party within the coalition (473 seats). Baldwin becomes de facto PM.
When and why did Macdonald resign?
1935 - ill health.
What was Baldwin’s term dominated by?
Road to war, appeasement, Hitler.
1936 abdication crisis - on which he was complimented on how he responded to this.
Who became PM in 1937?
Chamberlain
When and why did Chamberlain resign?
Vote of no confidence in 1940.
Who took over from Chamberlain?
Churchill - oversaw the War-Time coalition - like the NG but with more Liberal/Labour support.
Why was Chamberlain welcomed into the role?
Creation of new homes.
Work as Chancellor
How was Churchill successful?
War cabinet, new ministries created, emergency powers act gave wide ranging powers over the people to the government. Minister for Defence as well as PM. Maintained morale at home, maintained parliamentary support.
What helped the National Government’s success?
Managed to hold the centre ground while extreme parties failed to attract support. Stopped the BUF (fascists) and the Communist Party. Labour also suffered entryism of communism.
What was the result of the 1945 election?
Labour victory - landslide victory - Attlee PM - first ever majority labour government.
What aided Labour’s victory?
The war - affected everyone - total solutions needed - universalist solutions. Also - evacuation highlighted class divide and black spots in Britain.
What act was passed in 1946?
National Insurance Act
How far did government approval rates for Churchill drop and why?
Below 50% for the loss of the North African fortress of Tobruk.
What was Attlee’s role in the national government?
Deputy PM - helped with the passing of the NIA in 1946.
What was Attlee’s campaign called?
“Let us Face the Future” and “Land fit for heroes”
What was the first election to have polling?
1945
What did the Family Allowance Act of 1945 give?
Provided mothers with a non means tested payment for each child apart from her first. MP Eleanor Rathbone argued against the payment going to fathers
What did the National Insurance Act 1946 create?
Compulsory universal contributory system to help pay pensions and benefits for unemployment, sickness, funeral expenses and maternity benefits.
What act extended cover for work place injuries?
Industrial Accidents Act of 1948
What act was passed in 1948 and what did it do?
National Assistance Act - established the National Assistance Bureau to provide financial help to the most vulnerable people, such as single mothers, the blind and deaf , who had not been covered by the 1946 Insurance act. 250,000 more people were able to claim a higher rate of benefits after 1948.
What was the Post War Consensus based on?
The ideas of Attlee - generally leftist policies
Define Post war consensus
The post war consensus was the agreement of policies between the parties and included areas of policies such as: nationalisation of major industries (coal mining, transport, gas, iron, steel and Bank of England” and the establishment of the NHS.
What did the post war consensus agree on?
They agreed on “Big Government” - which is state intervention - health care and welfare, education. Agreed on the idea of Keynesianism - in times of economic downturn, there should be high government spending.
When was the Bank of England Nationalised?
1946
What was the aim of Attlee’s middle way?
The aim was to improve the efficiency of failing industries and save jobs. To approve the worker-employer relations and to put the community needs first.
What agency was made in 1947
The Economic Planning Council - provided checks on levels of productions.
What was the impact of WWII on the post war consensus?
- Rationing - bread and potato rationing ending in 1948. Fair Share Schemes. Coal rationed 1947-48 winter.
- Building materials only allocated to essential reconstruction.
- Controls placed on max. levels of rent, profits and interest rates. Not cap on wage increases. Voluntary waive on pay rises - met with some opposition from the right. Rise of Collectivism.
What about Labour policies meant the post war consensus lasted so long?
They were not radical or socialist - Attlee wanted to create a “mixed economy” - prevent failures and curb the excesses of capitalism. No extensive economic planning, no wage caps, adopt austerity.
How did the Conservatives benefit the post war consensus?
Anthony Eden - “one nation conservative” - more paternalistic. Wanted Britain to be taken seriously in foreign affairs.
Macmillan - wrote The Middle Way - response to the suffering of his constituents in Stockton.
RAButler - leading reformer who was the driving force behind the 1944 Education ACt.
How was the post war consensus breaking down by the 1970s?
Keynesian economics seemed to be failing.
Conservatives calling for a return to free-market solutions.
Strikers from public services.
Winter of Discontent 1978-1979.
Conservatives challenging the consensus - Heath and Thatcher
When was the Jarrow March
1936
What was the Jarrow March
March in response to the closing of the shipping yards - petition to parliament.
How much was the war debt
£850 million
What was the response the the war debt?
Taxes raised every year - £18 per capita in 1919 to £24 per capita in 1922.
1922 Geddes Axe - cut its spending from £206 million to £182 million.
Why did these cuts fail?
Cuts were in education, pensions, unemployment benefits, housing and health.
What was the result of the cuts?
Spending began to creep back up again in 1924 - cuts and extra taxation contributed to growing unemployment. Reduction in taxation due to unemployment.
When was the gold standard first abandoned?
1914
When did Churchill return to the gold standard
1925
Why was returning to the gold standard a bad idea?
Government set a high interest rate to cut inflation - encouraged foreigners to buy pounds.
Led to the increase in the value of the pound - desired sign of stability.
Gold standard lead to more expensive loans due to high interest and high exchange rate - exports become uncompetitive.
What was the aim of protectionism?
Protect British goods from foreign imports.
What act gave preference to goods from the Empire?
Safeguarding of Industries Act 1921
When were tariffs introduced
1923, 1925 and 1932
Why did protectionism fail?
Tariffs and protectionism rejected by electorate - fear of more expensive food imports. Limited tariffs added in 1925 - meant industries avoided introducing the changes needed to become competitive - less modernisation. Essentials became more expensive.
When did the government abandon the gold standard the second time?
1931
What did leaving the gold standard do to the pound?
It was allowed to flout against other currencies - depreciated from $4.80 to $3.40
How much cheaper did exports become?
25%
What were interests cuts from and to?
6% to 2%
How much was long term government borrowing cut?
5% to 3.5%
What did slashing the debt repayment cost allow?
Increase in spending - restoration of unemployment benefits in 1934.
What became more available?
Cheaper mortgages
What did the National Agriculture Advisory Service do?
Gave advice to farmers.
What was implemented by the Attlee Government?
A period of Austerity
When was Air transport nationalised?
1946
What was nationalised in 1947?
Cable and wireless
What else was nationalised?
Mining
What was the aim of nationalising?
The aim was to improve the efficiency of failing industries and save jobs. To approve the worker-employer relations and to put the community needs first.
What was the impact of rearmament in 1935?
15% of unemployed people found work in old industries.
How much did trade decline after WWII?
Declined by 2/3
How much did the economy shrink after WWII?
1/4
How was the economy managed?
Centrally managed economy.
How much of the national income was spent on military by 1945?
Over 50%
What ministries were set up to manage the economy?
Ministry of Food and Ministry of Labour
What aspects of the economy did the government manage?
Most - prices, production and rent.
Who was the economy dependent on?
America
How much did Britain receive through Marshall Aid?
£2.7 billion
How much did the UK owe the US by 1945
£4 billion
What was the interest on the loan?
£70 million a day.
What was the aim of nationalisation?
Promote full employment.