1910- Peoples budget, constitutional crisis and Irish home Rule

liberals in power pushing through reforms, but can't pay for
1. new reforms
  1. People's Budget 1909
    1. raise income tax on incomes over £3000 per annum
    2. increase duties on spirits, tobacco, liquor licences and stamp duties
    3. increased death duties on estates valued between £5000 and £1 millions pounds
    4. introduction of land tax
      1. the increased value of land when it changed hands (20 per cent)
      2. the annual value of land
      3. the annual value of land leased to mining companies
    5. set up a road fund for building and maintaining roads by putting taxes on petrol and introducing licences for motor vehicles
    6. introduce child allowances at a rate of £10 a year for every child under the age of 16. this was payable to families with annual income of less than £500
2. People's budget
  1. land tax stamp duty rise in income tax
  2. passes through the House of Commons but the lords reject it
    1. this causes outrage as the lords aren't supposed to veto money bills
      1. this causes the constitutional crisis
        triggered by Lloyd George's Budget proposals of 1909
        didn't lie In the House of Lord's as opposition of the principles of 'new liberalism'
        due to the House of Lords vetoing the People's Budget
        Lords originally didn't get involved in money bills
      2. Asquith calls an election (Jan 1910) and the liberal majority is wiped out
        to maintain his power, Asquith needs support and gets it from the Irish nationalist party
        The Irish nationalists want Home Rule in return for their support
        Home Rule won't be passed without reform of the lords as they always veto it
        second election, this time on reform of the House of Lords but the vote doesn't change
        the parliament Act was passed in 1911 and meant that the lords could only veto a bill twice, as on the third attempt it would be law
        April 1912, Asquith's got to introduce the third Home Rule bill (Gladstone has already had 2 attempts)
        July 1912, Benar law (leader of the conservative party)makes a speech saying he would go to any lengths to support the ulster nionists against Home Rule
        September 1912, Edward Carson (leader of the Ulster unionists) creates the blood covenant
        January 1913, crisis escalates and the UVF is created
        there are several conferences to try and resolve the issue but no one can agree
        they can't decide what should be excluded and for how long
        March 1914, Curragh mutiny where the British Army refuse to enforce Home Rule by force if necessary, 50 officers resign
        21st july 1914, another conference is held to try and resolve the issue
        August 1914 war breaks out and both Redmond and Edward Carson declare their support but for different reasons
        September 1914, the third Home Rule Bill is passed with a suspensory clause until the end of the war- Carson is outraged
        As a compromise, Asquith would give home rule but Ulster needed to stay part of England. Redmond outraged because of the religious divide in Ireland

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1910- Peoples budget, constitutional crisis and Irish home Rule

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	Created by Charlotte Piper almost 10 years ago