m13. The Political Development

second labour government

second labour government

may 1929

by 1931 labour had what proportion of seats compared to 1929

less than one fifth

housing act

1930

increased hose building and slum clearance subsidies

coal mines act

1930

reduced miners' working hours from eight to seven and a half hour shifts

attempts to reduce bitterness caused by general strike

land utilisation act and agricultural marketing act

1931

established marketing boards with the power to fix prices and arrange supplies more efficiently

london transport bill

1931 (came into law in 1933)

created public corporation to provide cheap and efficient public transport for london

why were labour reforms limited?

dependent on liberal support

reforms that failed due to lack of liberal support (3)

raising school leaving age to 15

maximum working week of 48 hours

repealing the 1927 trade union act

wall street crash

october 1929

great depression

reached its worst in 1931

british exports 1929-31

fell by half

unemployment 1931-32

end of 1931 - 2.5mil

end of 1932 - 3mil

what did macdonald set up for advice on the economy?

1930

economic advisory council

industrialists and economists

main problem faced by Macdonald:

• wanted to keep paying unemployment benefits as labour were the party of the working man

• huge sums of money disappeared in benefits and the budget was not balanced. labour did not seem trustworthy.

what did snowden believe?

balance the budget

stay on gold standard

(this would involve retrenchment reducing expenditure on welfare)

what did mosley believe?

expansionary government spending policy

finance public works schemes

social reforms through govt. loans

when/why did mosley resign?

may 1930

mosley memorandum rejected

banking crisis

may 1931

people lost confidence in the british banks

may committee report

sir george may

31st july 1931

may report predicted budget deficit of

£120 million by 1932 unless severe cuts made

may report recommended cuts of

£96.5 million

pay cuts for public sector employees

20% cut in unemployment benefit

outcry from trade unionists and others

did not agree with the cuts

cabinet economic committee

met on 12th august

by 19th august agreed to cuts of £56mil

(too little for other party leaders, too much for trade unionists)

cabinet approved substantial cuts

23rd august

11 votes to 9

bitterly split

macdonald resignation

24th august

convinced by king to stay and lead a national government

why was macdonald deemed a traitor (5)

• needlessly set up may committee

• slow to respond to crisis

• failed to appreciate how unpopular cutting benefits was

• failed to resign, aligned with tories

• called an election in 1931, causing electoral disaster for labour

doctor's mandate

a mandate which grants the new government the authority to do whatever it feels is necessary to promote the security and welfare of the country

october 1931 general election

554 MPs supporting national government

61 against

1935 general election

432 MPs for nat govt

175 against

national govt. financial policies

• off gold standard

• balance budget

• 10% cut to unemployment benefits with a "means" test

• cuts to wages of public sector employees

• lowered interest rates to 2% in 1932 (cheap money)

sterling area

members using the pound rather than gold to settle their trading accounts

import duties act

1932

tariffs to protect britain and empire

imperial tariff system

1932

agreed at ottawa conference

special areas act

1934

provided govt. aid to the most depressed areas

cotton industry (reorganisation) act

1936

close down non profitable mills

british shipping (assistance) act 1935

provide govt. loans for shipping companies to scrap old ships and build new ones