Changing Political Environment

1. Commons had more power over Lords

1. Policies had to change
2. Voters may change allegences
3. Labour appealed to the working class
   1. 'Party of the people'

1. Baldwin calls a general election
   1. Vote of No Confidence from labour and liberals
      1. Becomes first Labour government

1. Baldwin tries to discourage framing Labour

1. Low interest rates
2. Tariffs
3. Spending cuts
4. Growth in extremism
   1. Due to government failure
5. Removal from gold standard

1. Started to rearm for 1934
   1. Threat form Germany
   2. Split Labour
      1. Collective security
      2. War likely

1. Collective security
2. Hitler broke ToV
3. Failed

1. popular with public

1. European dictators

1. Fall in unemployment
2. Stable prices

1. Not realistic
2. Unnecessary jobs
3. Inflation rose
4. Everyone earning
5. More money to invest back into the economy

1. Government can create Jobs
2. No competition between trades

1. No minimum wage
2. Paid for skill

1. Healthy workforce
2. Improved quality of life
3. Cost kept rising

1. Loss of safe consituentcy borders

1. Loss of freedom
2. Restrictions during peacetime

1. unable to revive economy

1. 45% tax in 1949
2. 90% tax for higher earners
3. Not able to spend money

1. Increase in military expenditure
2. Extra charges for NHS

1. % not represented by seats

1. More difficult to govern

1. Economic and welfare policies
   1. Post-war consensus

1. Showed control that America had over Britain
2. Reduction in British World power

1. Rising inflation
2. Spending cuts and tax rises

1. Falling popularity

1. Vasal
2. Philby
3. Profumo

1. led to increased labour disputes

1. Mass Production
2. Increased pay
   1. Due to competition
3. Consumer prices fell

1. regional differences in unemployment

1. Labour-full employment not realistic
   1. Market forces should control employment

1. Arrest of shop stewards
2. National Dock strike threatened
3. government unable to enforce its policy

Annotations:

•    Pay increases ran ahead of inflation, which fuelled more inflation. The miners had accepted moderate pay in return for job security, but were increasingly influenced by extreme leaders. The coal board offered an 8% rise for 1972, but this was rejected by the union and a national strike began in January. Scargill was the main user of flying pickets.   

1. Fueled more inflation

1. Closed under strike by Scargill

Annotations:

•    Heath introduced a three stage prices and income policy. The first stage was a 6 month pay freeze. This policy was popular with the less well off with flat rate increases. But this did not save the government from union denunciation. During the three day week earnings increased but productivity did not. This showed that inflation had risen and many jobs had been made, when they were not needed. The adopted income policy was dropped in 1970 (u-turn)   

1. 6 month pay freeze
2. 3 day week

   Annotations:

   • During the three day week earnings increased but productivity did not. This showed that inflation had risen and many jobs had been made, when they were not needed.
   1. Production output only decreased by 3%
      1. Meant there were needless jobs
3. U-turn

1. Housing Act
   1. Slums replaced with modern housing
2. Coal Mines Act
   1. Better pay for miners
   2. Guaranteed coal prices
3. Agricultural Marketing Act
   1. Board established to fix prices of produce
4. Amended Unemployment Insurance Act
   1. More people could claim

1. Dependent on Liberals
2. Had to make cuts
3. Split in Labour Party
   1. Formation of National Government