British: Labour Government 1929-1931

What were Labours spending habits?

-Labour came into power again in 1929: but was a minority government

-Labour came into power following the Great Depression, high unemployment levels

-The government was accused of 'Extravagent Spending'--> unemployment benefit was a huge expenditure.

What was the May Committee?

-In order to help the Labour party the May Report was created by Sir George May

-The committee predicted a budget deficit of £120 million; economies of £97 million, cuts to unemployment benefits and additional taxation

-->felt social expenditure was wasteful

-->others felt Britains fixed debt was the issue

-Britain needed to balance the budget to ensure funding from foreign bankers

What was the big deal then?

-Inter-argument: how they would retain the sterlings parity

-Many cabinet members (later Henderson), felt that these cuts would go against Labours inital aims

--->Henderson: under TUC pressure, although previously upporting MacDonald

------>They should leave office united

--Foreign bankers wouldnt agree to £80 million loans if Britain didnt cut/balance their budget

What was the Great Betrayal?

The 'Great Betrayal' was the creation of a National Govenment by Ramsay MacDonald. Due to the lack of concession within the Labour Party

How could the issue be resolved?

Keynesian method: budget deficit which would stimulate trade and empolyment
Mosley method: Expansionary economic policy
---->Historian method: SKIDELSKY, Mosley Memorandum 1930




What were the National Governments intentions?


-The National Government was not intended to be a permanent measure, required to solve Britains economic issues
-Advocated by King Edward VIII
-Acted in National Interest





Those against the National Government?


-MacDonald tended to listen to the views of foreign bankers and opposition parties


-Highly conservative


-It didnt do a great deal to overcome unemployment issues





Labours situation following the National Government?


-Labour faced defeat in 1931 winning 46 seats to the 554 won by the National Government


-Many Labour figures lost seats not to return to the cabinet again





Labour minor recovery?


-November 1935: Labours winning of 154 seats to the National Governments over 250


-Yet particular areas of the country refused to vote for Labour again





Labour Leadership issues?


-Arthur Henderson was the expected leader, yet his loss of seat meant this was made impossible


-Followed by incompetent leaders: George Lansbury, and Clement Attlee (mouse)--> yet his longevity proved his leadership skills





Labours influence/lack of influence?


-Labour was still popular in areas like LANCASTER AND NE ENGLAND as it was recovering from the slump


-Labour lacked influence in MIDDLANDS AND S WALES as they were becoming content with the National Government.