The People's Budget Flashcards
Past problems House of Lords
Problems caused 1892 to 1895 by blocking policies backwoodsmen who would never normally attended turned up to block home rule for Ireland
Education bill 1906 was rejected so much it had to be abandoned
Scottish land bill was also blocked
Changes to income tax
Increased income tax from 1s to 1s 2p in the pound on incomes over £3000 a year
New super tax on incomes over £5000 a year
Increase death duties on estates over £5000 a year
When was the budget
April 1909
Land taxes
On an increase in value not due to improvement by landowner
1/2d in the pound on the value of undeveloped land and minerals
Other taxes
Indirect taxes on luxury goods for example motorcars alcohol and tobacco
Reaction to the People’s budget
Opponents were worried that redistributive And progressive taxation would take money from them and they would lose their wealth Lloyd George was a accused of starting a class war because it was in favour of the poor and targeted the rich in speeches he actively criticised the rich
What happened to the budget?
The budget was vetoed so the liberals were forced to call a general election the liberals needed to encourage the public to vote in favour
House of Lords
Dominated by conservatives and was known as Mr Balfours poodle after 1906 because he used a Conservative majority in the House of Lords to block liberal reforms he didn’t like