Britain Transformed A-Level History Thatcher Summary Notes: Economics
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Britain Transformed A-Level History Thatcher Summary Notes: State
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PEARSON (PEARSON)
History 2015
Unit 1H - Britain transformed, 1918-97
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Changing party fortunes 1918-31
● After the first world war they were economically damaged
● £3.2 billion in war debts, mainly to the USA
The liberal party in 1918
● Before the first world war the liberal party had dominated british politics
● The experience of the war deeply divided the liberals
○ Many opposed the growth in the power of the state, particularly on the issue of conscription
○ The war resulted in coalition with the consevative party from 1915, when DLG became prime
minister, many liberal MPs believed he had abandoned the principles of the party and had
become too close to the conservatives.
○ 1918 split the party vote as DLG campaigned against members of the liberal party which stood
in his way.
The labour party in 1918
● Party closely tied to unions who saw them as a tool
● Much easier to get working-class politicians to be elected once the liberals gave politicians a wage and
didnt have to depend on their own individual salary.
The conservative party in 1918
● By the end of WW1 the conservatives presented themselves as a party of the middle classes and those
members of the working class who wanted to “better themselves” through property ownership.
● The conservatives had been part of DLG wartime coalition from 1915-1918 and continued to support
him as prime minister until 1922
The Maurice Debate – May 1918
This causes further problems for David Lloyd George. General Maurice accuses the PM of hoarding
manpower during WWI, he said this prevented army Generals from launching offensives during the
conflict. Asquith goes onto lead an attack (vote of no confidence) in Parliament on the PM but David
Lloyd George remained PM. This event made Asquith & Maurice look like trouble makers & showed
how wide the gap was between them & the PM.
1918 December Election – Coupon Election
This is the first election after the close of WWI, it is known as the “coupon election”. “Coupons”
were given to candidates to show that the Liberals & the Conservatives were genuine in acting
together. David Lloyd George wanted to remain in coalition with the Conservatives. The
Conservatives also wanted this because they had not won an election from 1911, they wanted to be
linked to the prestige of ‘man who won the war’ as it was a vote booster. It also can be interpreted
as a piece of opportunism & an indicator of the problems in the Liberal party.
Cash for honours - DLG involved in a scandal selling knighthoods and peerages in return for large donations
and support.
-during his 6 years as prime minister (1916-1922) David Lloyd George sold 1500 knighthoods and nearly 100
peerages
- this scandal did immense damage to his credibility
The carlton club meeting - secret meeting held by the leaders of the conservatives, held at a private members
club for londons political elites.
- At the meeting it was decided to abandon the coalition with the liberals.
1922 election
The General election takes place on 15th November 1922. The Conservatives win and Andrew Bonar Law
becomes Prime Minister.
Results:
1. Cons = 345 seats
2. Lab = 142 seats
3. Lib = 118 seats
, Why did the Conservatives win?
1. Gains from the 1918 Representation of the People Act.
2. Working classes & Trade Unionists voted for them.
3. Consistently supported the war & so won support from servicemen & their families.
4. Constituencies were re-shaped. Home Counties gained more seats
5. They learnt from their experiences in the war – Young Conservatives who had served
respected their comrades & wanted to make the world a better place for them in
peacetime. For example Chamberlain’s Housing Act 1923.
General election 6th December 1923
Another General election is called at Andrew Bonar Law becomes seriously ill with throat
cancer. The Conservatives win again and Stanley Baldwin becomes Prime Minister.
Results: Conservatives = 258 seats Labour = 191 seats Liberals = 159 seats.
The rise of the labour party
● The first labour government was led by ramsay macdonald in 1924.
● As prime minister he had to compromise, but the party was critical of him for not being more radical
● This government lasted for 9 months, too short a time to introduce much legislation
Government collapse
● Macdonalds government collapsed in the autumn of 1924 following a motion of no confidence which
macdonald narrowly won.
The Campbell Case Sept 1924
Labour began to interfere in the justice system, it was accused of trying to use its influence to have a
prosecution withdrawn against a left-wing journalis J R Campbell. Campbell had urged soldiers to disobey orders
if they were ever called on to fire on striking workers, this resembles action that had taken place in the USSR.
MacDonald went on to state that if the Commons voted for an inquiry he would resign. An inquiry into the affair
took place so he resigned.
● Macdonald was accused of having secret communist sympathies- because charges against Campbell
were dropped and he attempted to normalise relations between Britain and the soviet union.
● Macdonald was forced to resign and call an election
General election october 1924
● The conservative party won under stanley baldwin
● The Zinoviev Letter Crisis – 1924
○ The Daily Mail reported that there was a plot for a revolution in the UK, like there had been in
the USSR. It printed a letter from Grigor Zinoviev who was the chief of the Comintern (an
organisation that advocated world Communism).
● First-time labour voters in the previous election who were now disappointed with ramsay macdonald
switched to the conservatives, as did liberal voters who had lost faith in the ability of the party to revive
itself
● Conservative in power 1924-1929
March 1929
● In march 1929 stanley baldwin held a general election. Conservatives had more share of the votes but
labour had more seats so labour won, bringing Macdonald back into power.
● Macdonald had much more ambitious plans for his second ministry but still with a minority vote relied on
the liberals largely to pass legislation
● He passed:
○ The 1930 housing act- cleared 750000 slums and replaced them with modern homes by 1939
○ The coal mines act 1930- better pay for workers and more efficient pits- weakness of
legislation allowed mine owners to ignore it
○ Amended the unemployment insurance act- creating public work schemes to alleviate
unemployment. Funded with £25 million of government money
Economic problems - 1931 budget was too high - increased borrowing- caused panic and the pound was sold
lots- decreasing its value.
○ To keep the pound's value the government proposed a 10% cut in unemployment assistance,
spending cuts and tax hikes- hardship for the poorest
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