The National Government 1931-35

Question 1

Formation of the national government 1931

Answer 1

encouraged by the king,

• MacDonald and Snowden agreed to the creation of an emergency national government. Both men kept their positions and Baldwin joined as Lord President of the Council.
• the impact was immediate. All but 14 labour MPs refused to stand by their PM and went into opposition. The liberals, who were already split between LG and the rest, split again into opposition and a national faction.
• when parliament returned September 8 the new government had a majority of 59.
• 10th September Snowden raised taxes, but spending budget and took Britain off the gold standard (decreasing the value of the pound)
• October 6th MacDonald asks king for a dissolution of parliament to allow for an election.

Question 2

October 1931 election results

Answer 2

Conservatives 470

MacDonald’s National Labour 13

Henderson’s labour 52

Question 3

The media impact on 1931 election

Answer 3

1931 was the first election in which broadcasting played a major role. In 1931 over 4 million radio licences were issued.
-10 election broadcasts- 6 to nationalists, 4 to others
-unfair for liberals as one for each faction
-worse for labour because its speakers were weak. The strongest was Snowden who described his former parties programme as ‘bolshevism run mad’
 Was it a minimal impact?

Question 4

Housing under the national government

Answer 4

during the period 1924-29 averaged around 150,000 new homes per year.

• from 1932-39 around 300,000
• caused a trickle effect on consumerism causing a multiplier effect which stimulated other industries.

Question 5

Car production in the 1930’s

Answer 5

jumped from 200,000 a year (1924-29) to 450,000 by 1937

-however compared to America in 1935 ford produced a car every 2 hours and Austen motor company produced one every hour.

Question 6

Snowden’s economics

Answer 6

Snowden abandoned the gold standard in 1931.

-December 1931 £70 million worth of cuts begun along with taxation.

Question 7

Distressed areas fund

Answer 7

given an annual budget of £2 million

• Liverpool, Lancaster, west Scotland, west midlands, south wales, Northern Ireland, Tyne and tees.
• not enough
• Keynes said it was enough to buy everyone in Liverpool an ice cream

Question 8

London passenger transport act

Answer 8

1933 tube and bus network under increased authority.

• subsidise transport to increase economy
• increase regulation

Question 9

Agricultural marketing act-

Answer 9

1931

• tariffs creating imperial preference zone and imperial trading zone.
• in 1933 it was extended to include milk, potatoes, pigs and wheat.
• cost £40 million a year
• Abnormal importations act 1931- 50% levy on certain imports
• Agricultural industry long term decline, movement into cities of rural workers and movement to colonies- influx of cheap American and Canadian food meant milk and beef markets were suffering.

Question 10

Protectionism

Answer 10

protect domestic industry, boost manufacturing at home

(1) Helps to drag out a global oppression as everyone retreats behind trade barrier
(2) Key to preventing the collapse of certain sector of the British economy. It provided the base for growth in the late 1930’s.
(3) It was the worst thing to do. It prevented British manufactured goods from operating in a competitive environment and created a false atmosphere.

Question 11

Economic importance of the empire

Answer 11

Britain suffered from economic stagnation throughout most of the 1920’s.

• empire became more important to the British economy during the inter-war period, as it sold more goods to countries in its empire:
• from 1925-29 the empire took 1/3 of British exports (21% of this to dominions) and Britain received 1/3 of its imports from the empire.

-large quantities of oil were found in the Middle East after WW1. Causing the increased development of the car and aircraft industries. 1935 the Anglo-Iranian oil company was founded. This was later changed to BP.

Question 12

Economic development in Africa

Answer 12

-attempted to develop the regions natural resources.

• The ‘copper-belt’ developed in north Rhodesia.
• roads and railways continued to be developed and in 1920 Cape to Cairo railways was achieved.

-in Kenya and Rhodesia the main developments were brought about via the large increase in white settlements. British ex-soldiers were encouraged to set up farms in the central areas.