The conflict between the Lords and Commons 1910-11 Flashcards
What is the People’s budget 1909?
To meet the necessary revenue for certain reforms, Lloyd George planned to increase taxes on the propertied classes:
Standard rate of income tax raised on incomes over £3000 per annum.
A new super tax of 6d per pound on incomes over £5000 per annum.
Death duties increased.
Increased taxation on alcohol, tobacco and motorcars.
20% levy on the unearned increase in land values.
Why was it called the People’s budget?
It was used to fund reforms that were for the people.
For example, the Old Age Pensions Act.
Why was it seen as provocative to the Conservatives?
It particularly targeted those on high incomes - a lot of whom were conservative.
Why was the People’s budget controversial?
It marked a clear departure in terms of approach to taxation.
Taxes were deliberately raised to pay for state-run schemes.
For the first time, there was an element of redistribution of wealth.
What action did the conservatives take in response?
Since the Conservatives had lost their majority in the Commons in the 1906 election, they had reverted to using its in-built majority in the House of Lords to block measures they objected to.
They did this with the People’s budget.
Why were the Lords wrong to oppose the budget?
They broke the 200 year old convention of Parliament that the Lords did not interfere with finance bills.
The unelected house of Lords were blocking the elected Common’s leglislation, which was seen as a threat to democracy.
The Conservatives were protecting their political and financial interests, rather than national interest.
This caused a constitutional crisis.
What was the Lord’s defence for their actions?
They resisted the budget on the grounds that it was an unprecedented attack upon the rights of property.
What was the outcome of the January 1910 election?
The Liberals lost their overall majority, but knowing they could rely on the support of Labour and the Irish Nationalists, remained in government and continued with the People’s budget.
Libs: 275, Cons: 272.
What was the significance of the January election?
The Liberals lost their majority, so had to rely on the Irish Nationalists for support.
This meant that Home Rule for Ireland was on the agenda, but this wouldn’t be passed until the House of Lords is reformed, leading to the Parliament Bill.
What was the outcome of the December 1910 election?
An election was called on the issue of the Parliament Bill.
There was little change in numbers.
But the new king agreed to create more Liberal Lords (peers) to get the bill through parliament.
The Bill was passed as the Conservative Lords did not want Liberals joining in the House of Lords, it was a close majority.
What was the Parliament Bill?
It limited the Lord’s powers:
The Lords can only reject or amend a piece of leglislation twice, the third time it becomes law.
The delaying power be restricted to 2 years.
General elections be held at least once in 5 years, instead of 7.
What happened after the Parliament Bill was rejected?
The House of Lords rejected it.
Between June and November a ‘constitutional conference’ was held to try and find a compromise but was unsuccessful.
The December 1910 election was called.
What is the Political significance of these events?
The Liberals lost their overall majority and become dependent on the Irish Nationalists for support.
This led to the events of Home Rule and the Ulster Question.
Asquith and Lloyd George enhanced their political reputations.
Balfour resigns as leader of the Conservatives, and is replaced by Andrew Bonar Law.
There is less social legislation - the Liberals are in no position to do so and a lot had already been achieved.
