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Summary The second Labour Government

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Notes on the Second Labour Government in the UK - includes legislation and how they ascended to power. Has key dates names, and starter tasks to attempt yourself with correct answers.

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  • January 31, 2024
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Second labour government notes

 Housing act 1930

Arthur Greenwood built on Wheatley act, reintroduced gov subsidies for council
housing and greater powers to enforce slum clearance. 700,000 built.

 Education Bill 1930

Charles Trevelyan tried to raise school leaving age to 15 faced debate by catholic MPs
and the HOL.

 Coal mines act 1930

Miners’ hours reduced (7½), fix minimum wages and production quotes, removal of
unprofitable mines.

 Agricultural marketing act 1931

Fix prices and arrange supplies (assisting farming). Provided subsidies.

 London transport bill 1931

Herbert Morrisons made a new institution that made cheap busses and trains in
London. Mini nationalisation

 Unemployment insurance act 1930

More people could get insurance.

 Road traffic act 1930

USA, Britain, and Japan agreed to warship building programme with a ratio of 5:3:3 / reassumed
relations with the USSR / first tentative steps towards the independence of India.



Starter – true or false

 Britain led the world in banking in 1929. – balance of payment surplus.

 Britain led the staple industries in 1929. – too much funding during war, leading with new
industry.

 Unemployment was largely a regional phenomenon in the late 1920s. – worse in certain
locations. Intractable 1mil.

 The Geddes Axe is an example of Orthodox Economic Theory. – massive cuts to Government
spending to balance the budget.

 The second labour Gov was heavily constrained by their reliance on the liberals – unable to
revert trades disputes act.

Orthodox economic theory: balance the budget / free trade / balance budget low (low spending
and therefore low taxation) / fixed exchange rate.

The second labour Government 1929-1931

, Domestic achievements + government approaches to the economy

MacDonald’s cabinet – still had Snowden (economy/chancellor) which made it appear moderate –
committed to orthodox economic theory. Henderson, Greenwood, Morrisons, Bonfeild. Oswald
Mosley was radical left wing. He was attempting to show fitness to govern.

Key achievements heavily based in legislation: coal mines act / agricultural marketing act /
London transport bill / education bill. They also reconnected with the USSR and created a deal
with USA and Japan to begin warship building (international relations).

The left wing wouldn’t have been happy with trades dispute act still being in place, lack of
nationalisation (clause 4), and failure to reduce unemployment but would have been happy with
coal mines act / housing act / agricultural act – all that gave to the workers. *some of the left would
have been pleased although disappointed overall*

Nothing surrounding unemployment, didn’t reverse the trades disputes act, create a social
commonwealth (raise school leaving age and lower pension age to lessen those who could be
employed), abolish plural voting, change the election system (STV – fairer than first past the post)
BOTH LIBERALS/LORDS BLOCKED MANY OF THESE!!

THE GREAT DEPRESSION – tumbling economy

The economic situation in 1929

 Unemployment never below 1 million throughout the 1920s.

 Hit 2 million in 1921 when cyclical and structural unemployment occurred together and was
moving towards this stat in 1929.

Impact of the Wall Street Crash (OCT 24th, 1929)

 Loss of US markets. With many banks bankrupt and widespread American unemployment.

 Reduction in European trade as other European nations hit.

 Between the end of 1929 and 1931, value of GB exports halved both visibles and invisibles.

 Dec 1930 – 2.5 million unemployed national!
Economic Decline : Ulster / clydside / North-west / Liverpool / East Coast / South Wales
Economic Growth : midlands / Southern England / Bristol + SW / Oxford



How effectively did the Labour Government deal with the World Economic Crisis in 1931?
Snowden as Chancellor committed to economic Orthodoxy.
Summer 1931 – crisis (British exports halved)
1929 colonial development act – 1m a year to promote British development schemes.
SIR OSWOLD MOSLEY -> memorandum of alternate proposals. Protective tariffs to restrict imports,
a greater use of credit to provide public works and promote expansion, more government
direction of industry to promote rationalisation and efficiency, and increased pensions and

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