Eden was an expert in foreign policies and was not
'part of the club'. He relied heavily on Butler as his
knowledge of economics and finance were weak.
Budgets
Hire purchase charges were raised in July
and then in October taxes were raised in an
emergency budget. Butler backtracked on
his giveaway budget and Gaitskell used this
to savage Butler in the commons.
Reshuffle
Eden moved Macmillan from
foreign office to COE
Selwyn Lloyd took the foreign office.
Suez crisis 1956
Eden authorised an invasion of Egypt to
regain control of the Suez Canal. The
canal was a profitable trade route which
used to belong to British and French
companies until the Egyptian
government nationalised it in 1956.
Eden publicly claimed the invasion was a peace-keeping
exercise, but in reality he wanted to retake the canal.
Eisenhower was campaigning as peace maker so made it clear
to Eden that any British imperial adventures should stop.
Eden resigned and Macmillan took over.
Election
On taking office he immediately
called a general election for 26 May
1955, at which he increased the
Conservative majority from
seventeen to sixty, a majority which
broke a ninety-year record for any
UK government.