MacDonald's premiership, 1931-35

Context

• MacDonald’s premiership dominated by the Great Depression, mass unemployment, and attempts at economic recovery.

• Government also faced rising European fascism and the threat of domestic extremism.

Economic Policy & Effect

Spending Cuts

• National Government implemented the 10% public sector pay cuts that had split Labour.

• Cuts triggered the Invergordon Mutiny in the Royal Navy.

Tariffs & Recovery

• Introduced limited tariffs.

• By 1933, recovery began due to:

  • Leaving the Gold Standard

  • Low interest rates

• Government popularity rose.

• MacDonald became isolated and was replaced by Stanley Baldwin in 1935.

Labour Party Opposition

• Labour reorganised under Clement Attlee.

• Became the official opposition.

• Won 154 seats in the 1935 election, showing strong recovery from 1931

Growth of Extreme Political Ideas (1930s)

Far Right

• British Union of Fascists (BUF) had 50,000 members by 1934.

Far Left

• Communist Party of Great Britain had 9,000 members, but organised the National Unemployed Workers’ Movement, representing many more.

Intellectual Support

• Influential Fabians Sidney and Beatrice Webb praised Soviet economic planning after visiting the USSR.

Oswald Mosley & British Fascism

Mosley’s Break with Labour

• Former Labour MP inspired by Mussolini’s Italy.

• Resigned and founded the New Party (1931).

• Issued the Mosley Memorandum calling for a national economic plan.

• Lost moderate support after creating violent enforcers, the “Biff Boys.”

Formation of the BUF

• In 1932, merged fascist groups + New Party into the British Union of Fascists.

• BUF briefly threatened public order.

• Public Order Act (1936) banned political uniforms and regulated marches.

• BUF declined after 1936 but showed widespread disillusionment with parliamentary democracy.

Disarmament vs Rearmament

Public Opinion

• Hitler’s rise (1933) split opinion between rearmament and pacifism.

• Many supported peace groups:

• Peace Pledge Union

• League of Nations Union

Peace Ballot (1934)

• 11 million responses.

• Strong support for collective security.

Peace Pledge Union

• Over 100,000 pledged to oppose war.

Government Policy

• By early 1930s, most British officials no longer blamed Germany alone for WWI.

• Believed arms races and secret treaties caused war.

• Britain pushed for disarmament at the World Disarmament Conference (1932–34).

• Conference collapsed when Germany withdrew in 1933, demanding equal armaments.

Shift to Rearmament

• Baldwin now argued for parity, not disarmament.

• From 1934, Britain rearmed:

• RAF expanded to 40 squadrons

• Army reorganised

• Royal Navy expanded

• Munitions industry developed with private capital