A changing political and economic environment

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Who was in power by the end of the war?

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Description and Tags

HA - Herbert Asquith DLG - David Lloyd George BL - Bonar-Law SB - Stanley Balwin RM - Ramsey Macdonald NC - Neville Chamberlain WC - Winston Churchill CA - Clement Atlee AE - Anthony Eden HM - Harold Macmillan DH - Douglas-Home HW - Harold Wilson EH - Edward Heath JC - James Callaghan MT - Margaret Thatcher

122 Terms

1

Who was in power by the end of the war?

David Lloyd George (Liberals)

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2

Why did the Liberal come out of the war divided?

  • Gov intervention (e.g rationing and conscription) Asquith against, DLG for

  • DLG dependant on con support

    weakened by 2-party system

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3

Why did the cons come out of the war strengthened?

  • Plural voting

  • Changing constituency boundaries (more in home counties)

  • Lib decline

  • Family values attracted new female voters

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4

Why were the labs emerging coming out of the war?

  • Financial support from TU

  • ROPA x3 electorate (although debate on ^ of wc voters)

  • Commitment to Clause IV (socialism)

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5

How did the 1918 ROPA change the electorate? Did this benefit lab?

  • Tripled (7 mil → 21 mil)

    • Wc made up 80% of electorate now HOWEVER many wc women vote con and the ROPA only ^ wc % of electorate by 14%

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6

Who won the 1918 election? What was the nickname for this election?

David Lloyd George (Liberal-Conservative coalition)

‘Coupon election’

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7

Why did the DLG libs and cons form a coalition?

Cons needed man ‘who won the war’ and DLG lib needed cons support (within the coalition landslide the con won 3x more votes than the DLG libs)

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8

Who was the head of the conservatives at the time of the Lib-con coalition?

Andrew Bonar-Law

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9

DLG face many problems including an economic slump.

  • How many were unemployed in 1921?

  • What was the gov’s solution to this in 1922?

  • 1 mil unemp by 1921

  • Geddes Axe 1922 - £100 mil cuts in edu, housing etc. (edu cuts Would lead to class sizes of 60-70)

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10

DLG faced accusation of being corrupt. What two things led to this accusation?

  • Affair with secretary Francis Stevenson

  • Selling 1,500 knighthoods of £10,000-£12,000 each and not sharing the £ with the party (weaken libs and labs had TU, cons has wealth members, libs had nothing)

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11

What happened at the Carlton Club meeting of 1922?

Cons decided to end the coalition with the liberals, no longer wanting to be associated with DLG

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12

Who won the 1922 election?

Andrew Bonar-Law (conservative)

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13

Why was the 1922 election significant for Labour?

They overtook the liberals, almost x2 the votes of Asquithian libs. Labour was now a viable option (benefitting from FPTP 2-party system)

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14

BL resigned in 1923. Who became PM after him?

Stanley Baldwin

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15

Why were the cons divided under SB’s first gov (1923-24)? What did this lead to?

SB wanted protectionist tariffs but BL had pledged lassaiz-faire → SB calling election to reunite the party but lost vote of no confidence

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16

Who led the first labour government in 1924?

Ramsey Macdonald (First Labour government for 9 months) with Asquithian lib support

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17

What significant Act did the first lab government bring in? Why was it so significant?

1924 Housing Act - built 500,000+ houses

Significant as it reversed Geddes Axe and did what the cons promised but failed to do

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18

Why was RM more radical despite Lab wanting him to be?

To keep support of Asquithian libs

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19

Who won the 1924 election?

SB (conservatives)

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20

What did SB promise when the cons won in 1924-29?

Safety first

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21

How did Labour fair in the 1924 election?

Although lost to cons the party didn’t collapse (unlike libs votes falling by 12%)

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22

Who won the 1929 election?

What was the elections nickname?Why?

RM (Labour)

‘Flapper election’ - After the 1928 ROPA allowing women to vote equally to men

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23

Under RM’s 2nd premiership came the crisis year of 1931

  • How many were unemp?

  • What led to £33 mil withdrawn from ldn?

  • 2 mil

  • Rumours of and unbalance forthcoming budget → foreign investors confidence decr

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24

To help the economic crisis of 1931 what did RM and chancellor Snowden propose? What effect did this have on the party?

  • Proposed spending cuts (incl 10% cut in unemp assistance) and tax ^

  • Divided lab → RM going to resign

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25

The … urged RM not to resign in 1931 and instead form the … …

The king urged RM not to resign in 1931 and instead form the national government

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26

What policies did the nat gov manage to introduce to stimulate and economic recovery?

  • 10% public sector cuts that previous gov wanted to pass but couldn’t

  • Tariffs

  • Low interest rates

  • Ending gold standard

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27

Who was Oswald Mosley? What organisation did he create in 1932? What did they do? What Act stopped him?

  • Charismatic leader of the New Party in 1931. He was inspired by Mussolini. He had supporters until he established a violent group called ‘Biff Boys’

  • In 1932 he created the British Union of Fascists (BUF)

  • They taught skills e.g ju-jitzu (even gaining support from suffragettes), led the Battle of Cable street in 1936

  • 1936 Public Order Act - banned group from wearing uniforms and required permission to march

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28

What was the max % of votes the Communist Party of GB had?

0.4% (very regional e.g Clydeside)

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29

Why doesn’t Britain turn to extremism?

  • Lab socialist alternative

  • Suffering isn’t as extreme as Ger for example

  • New Welfare

  • Won WW1

  • Many communists away fighting against Franco in Spanish Civil war

  • Nazi-Soviet Pact decr credibility of communism and fascism

  • 1936 Public Order Act

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30

When RM resigned who becomes next PM of Nat gov?

SB

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31

What did Br do when Hitler invaded the Rhineland breaking ToV?

Nat gov dived but ultimately took no action on ger (did continue to rearm though)

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32

Who became PM in 1937?

Neville Chamberlain

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33

When/What was the Munich Agreement?

Public desire for peace → NC trying to appease Hitler and giving him all his demands. Wanted ‘peace in out time’

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34

Who became PM in 1940?

Winston Churchill

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35

WC was a good public speaker. What was his first famous speech?

‘Blood, toil, tears and sweat’

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36

Who won the 1945 election? Was is a minority or a landslide?

Clement Attlee (Labour) won a landslide

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37

Why did Labour win a landslide in the 1945 election?

  • Cons leadership during the Hungry 30s

  • Lab had ministerial experience (5 key war time minister including CA)

  • Cons adopted War-time socialism

  • Desire for welfare state (Lab would provide)

  • WC likened lab to ‘gestapo’ vs CA response was calm a

  • Lab manifesto ‘let’s face the future’

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38

How many Act did the post WW2 lab gov pass? Give some examples.

347 acts e.g.

  • NHS

  • National Insurance

  • Br Nationality Act

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39

How was the post WW2 lab gov limited?

  • No investment in new industries too focus on unemp

  • Still housing crisis - 750,000 fewer homes then households

  • Tripartite not achieved

  • NHS not free

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40

Why did Labour become so divided?

Cost of the Korean War → need for charges on NHS imposed by chancellor Gaitskell. Bevan walks out. → Gaitskellites (‘middle way’) and Bevanites (left)

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41

Who won the 1951 election?

Churchil (conservatives)

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42

Why did the conservatives win the 1951 election? (what did cons do right? what did labs do wrong?)

Con did right:

  • Industrial CHarter

  • Promised 300,000 house a year

  • ‘More red meat’

  • Young, modernised, reorganised party - one nation

  • commitment to nationalisation

Labs did wrong:

  • divided on NHS charges (Bevan walks out)

  • Lab overworked

  • Taxation at 90% for top earners

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43

Who became PM in 1955?

Anthony Eden (conservative)

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44

What was the state of unemp in 1955?

Lowest in the period. 1% unemp

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45

How did the Suez crisis lead to Eden’s downfall?

  • 2/3 of Europes oil comes through Suez but Egypt’s leader wants to make Suez Egypt’s

  • Secret plan that Isreal will invade the canal → Br and Fr kicking them out and claiming it.

  • USA isn’t told

  • Eisenhower tells Br to leave suez if they want continued US support

  • Br forced to retreat - humiliation

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46

Who became Pm in 1957? What was his nickname?

Harold Macmillan ‘Supermac’ (conservative)

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47

What successes did HM oversee?

  • Mixed eco

  • Low unemp

  • Equal wages and living standards

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48

Explain the ‘dissent on the right’

1959 - Thorneycroft, Birch and Powell walk out. They want monetarism (focus on inflation rather than post-war commitment to unemp).

Divergin from one-nation torism → ‘new right’

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49

Explain the night of the long knives.

HM sacked 7 ministers. There were 35 etonians in cabinet and HM didn’t want to seem out of touch.

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50

What led to a sense of distrust with cons and national security?

3 spy scandals during the height of the cold war

  • John Vassall

  • Kim Philby

  • Profumo

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51

Who became PM in 1963? What was he ridiculed for?

Douglas Home (Conservative)

Ridiculed for aristocratic manner

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52

Who won the 1964 election? Was is a minority or a landslide)

Wilson (Labour)

Minority - only won by 4 seats

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53

What attributes → Labour winning in 1964?

  • Meritocratic and classless

  • Use of TV campaigns

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54

What limited HW?

£800 mil budget deficit left by cons → forced to devalue the £ to continue social reform

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55

Who won the 1970 election?

Heath (Conservatives)

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56

What were Heath’s aims?

  • ‘Quiet revolution’

  • Meeting at Selsdon park to make new manifesto - plan to leave consensus

  • £330 mil state cuts

  • Cut school milk

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57

What led to Heath’s U-turn? What was the impact of this?

  • 15% inflation → crisis and return to consensus

  • TU issues → 3-day-week and state of emergency

  • People at Selsdon meeting were unhappy

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58

Who won the 1974 election?

Wilson (Labour)

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59

HW compromised with the miners giving them 35% wage ^. What was the issue with this?

Not tackling root cause of inflation

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60

How was Labour divided?

  • Centre - Wilson, Callaghan, Healey

  • Soft Left - Micheal Foot

  • Hard Left - Tony Benn, belief in ‘siege economy’

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61

Who became in 1976?

Callaghan (Labour)

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62

How did Callaghan abandon consensus? Who did he clash with frequently?

Believe Br had borrowed beyond its means. Frequently clashed with Benn

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63

Post WW1

  • What was the financial cost of the war?

  • How much was Br in debt to the USA?

  • What was inflation at?

  • Was Britain on or off the gold standard?

  • £3.25 bil

  • £850 mil

  • 25%

  • Came off the gold standard during the war

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64

What led to the post WW1 boom?

War time restrictions → saving → spending on luxury items

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65

What led to the recession in 1920?

Speculative boom on old, uncompetitive industries such as shipping, coal

Wartime industries struggling to return to civilian usage

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66

3 reasons why Br was responsible for its own eco decline (and explain)

  • Power of TU - DLG generous pay and hours to prevent strikes (8hour day → 13% decr in hrs but same wages)

  • Underinvestment - compared to competitors. USA producing 2.5x steel

  • Deflation - 75% cuts to return to pre-war levels. Interest ^ 7%

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67

How much £ did the Geddes Axe propose cutting from 22-23 budget? Give examples of sectors they were planning to make cuts in?

£87mil cut

Mostly from military but also, edu, housing, health and welfare

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68

What major economic move did chancellor Churchill make in 1925? Why did he do it? Why was it bad?

  • Returns to the gold standard

  • Being off it is bad for Br pride and he believed he had to be harsh on manufacturers to be competitive

  • Interest rates were high → hard borrowing, hard for businesses to expand

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69

What figure was unemp at in 1930 (after the 1929 Wall St crash)?

2.5 mil

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70

What economic event led to a split in Lab and the subsequentcreation of the national government?

1931 -rumours or unbalanced budget → panic selling of the £ in USA. Lab proposed 10% cuts in unemp assistance to reassure foreign investors however many Lab were’t a fan of this.

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71

In what 2 ways the did the National gov enforce spending cuts?

10% cuts that had divided the labour party

Means tests for unemp assistance

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72

When/What was the Special Areas Act? Why was its impact limited?

1934 - giving financial aid to most depressed areas. However only provided £2mil overall (not enough)

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73

What % of men in Jarrow were unemp? When was the Jarrow march?How was the Jarrow March Successful? How was it limited?

1936 - 77% of men unemp

Success - 200 men walked 300 mils to Ldn ^ public sympathy

Failure - SB didn’t meet with them, had little impact

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74

Why could you argue Br was somewhat successful after the depression in compared to other countries?

The depression didn’t last as long as other countries. (Eco growth of 4% per year 1934-37)

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75

When did Br come off the gold standard? What were the effects of this?

1934

  • ‘Cheap money’ - decr interest rates → cheaper borrowing → ^ housing booms etc

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76

Give 2 examples of proof of eco recovery 1934-37

  • Unemp decr by ½ in the 30s

  • Smaller families → ^ disposable income e.g ^ mass entertainment

  • Cheap money → housing booms e.g Metroland

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77

Who gave Br huge amount of eco aid during the war as part of what agreement?

USA - Lend-Lease Agreement

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78

… expenditure increase from 15%-51% during the war

Military Expenditure

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79

How much was Br in debt to USA post WW2?

£4bil

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80

What is the state of British economy post WW2?

Extremely damaged

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81

When/what was Marshall Aid? How much did Br get? How dd Br fail with their usage of it?

1948 - loan from USA to prevent Europe turning communist, Br got £2.7 bil

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82

What two costly international commitments was Br art of post-WW2?

  • Korean War, Malaya and Kenya

  • Army base in Germany

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83

Labour nationalised a series of industries (e.g coal, transport). Why? Did it work?

Hope that it would create full employment. Yes it did there was full employment 1947-51. However money spent to buy the companies → little money to invest in them.

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84

Post war economic consensus comprised of what two elements? Did cons and labs both follow this (at first)?

  • Keynesian economics - (injecting money into eco to stimulate jobs) → full emp

  • Mixed eco

Yes both parties followed this policy for a while.

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85

Describe Stop-go Economics

  • Allowed excessive spending to stimulate eco

  • → inflation

  • To counter this would^ taxes and interest rates to slow eco

Shows you can’t manage inflation and unemp at same time → unstable eco

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86

When/What were the National Prices and Incomes Acts?

1966 - Statutory wage freeze for 6 months to curb inflation.

1967 - companies could ^ wages if proven that they were productive

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87

Wilson was passionate about ^ technology. Give an example of his success here.

  • Ministry of Technology 1964

  • First supersonic passenger plane Concorde

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88

When was Wilson forced to devalue the £? How much did it decr by? What did he promise the Br public?

1967

$2.80-$2.40 - 14%

It wouldn’t effect ‘the pound in your pocket

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89

Give an example of a merger encouraged by Labour that failed.

Leyland Motors and British Motor Corporation → British Leyland. Couldn’t compete with foreign imports and associated with bad quality cars

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90

What did Heath plan at Selsdon?

Break from consensus

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91

Give examples of cuts Heath made? What was the nickname for his harsh approach to failing businesses?

  • Free school milk

  • subsidies of council houses

  • Overall £330 mil cuts

‘Lame duck’ approach

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92

S… led to Heaths famous…, returning to f.. e… .R… … was even nationalised in 1971

Stagflation led to Heaths famous U-turn, returning to full employment .Rolls royce was even nationalised in 1971

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93

What led to Callaghan going to the IMF? When? How much did he receive?

1976 - eco crisis, unemp 1.25mil, Inflation 16%

Received IMF loan in 1976 of £4bil

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94

What compromise did Chancellor Healey have to make in accepting the IMF?

Agreement to £3bil cuts → being called the ‘traitor’ of the party

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95

How many strikes had there been in 1917?

48

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96

How many days were lost to strikes in 1919?

32 mil

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97

Why in reality was there little chance of Br during to revolution in the interwar periods despite what the perception might be?

Few of the strikes were political - mostly with aims of ^ wages

The gov was able to offer concessions to strikers

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98

Explain the events of Red Clydeside

  • 1919 in Clydeside, Glasgow 90,000 demonstrators protested for decr from 54 → 40-hour week.

  • Rose a red socialist flag (time of Russian Civil war)

  • Tanks and soldiers sent

  • 40-hour week never obtained

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99

Explain the events of the 1921 Miner’s Strike with the following prompts:

  • MFGB

  • post-war privatisation

  • NTWF and NUR - general strike

  • Black Friday

  • 20%

  • Miners Federation of GB was biggest union

  • Nationalised during war → privatised post war → mine owners decr wages

  • MFGB worked with NTWF and NUW hoping to cause a general strike. Miners didn’t include NTWF/NUW in negotiations

  • → NTWF/NUW backing out - aka Black Friday

  • Miners did strike but didn’t last long - forced to accept wage 20% lower than 1914

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100

Lack of investment from mine owners led to what?

Whilst other countries mechanising, Br lagging behind (still using axe)

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