Constitutional Crisis 1909-11 (4)
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- Created on: 15-06-17 01:24
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- Constitutional crisis 1909-11
- 1909 People's Budget
- £6 million was needed for Liberal reforms. The Cons were also using the House of Lords to block Liberal policies. Furthermore funds needed to be raised for Dreadnoughts.
- 5 main features of the budget
- Death duties: tax on property on those who have passed away
- Income tax: under £3000 income paid 9d for every pound earned; if earning over £3000, it was 1s2d.
- Duties (taxes) on petrol, tobacco and spirits
- Super-tax: Earning more than £5000 results in additional 6d per pound.
- Land tax: 20% on land sold higher than purchase price
- It was seen as an attack on the rich (and the Conservatives). It was presented as a 'war budget', and the House of Lords never reject any 'money bills' (budgets). However due to Conservative opposal it leads to the HoL rejecting it.
- 1910 General election
- The Liberals lose seats (275) and remain in power by promising the Irish Nationalists hope for Home Rule.
- Lloyd George (Chancellor of the Exchequer) used the slogan "The Peers versus the People"
- Parliament Act 1911
- The Parliament Bill was introduced in 1910: this meant that the HoL could not veto financial bills and any other bills vetoed, will only be delayed for 2 year (suspensory veto). However for this to become law it had to be accepted by the HoL themselves.
- Asquith was to ask King Edward VII to back his proposals, but he died causing delays. However the new King George V decided to back Asquith by offering to make as many peers needed to pass the bill. Consequently in 1911 it was passed.
- Asquith was to ask King Edward VII to back his proposals, but he died causing delays. However the new King George V decided to back Asquith by offering to make as many peers needed to pass the bill. Consequently in 1911 it was passed.
- This now meant that there were no further obstacles for Liberal reforms, Balfour stepped down as a result of it, and the govt was in a strong position to offer Home Rule to the Irish Nationalists.
- The Parliament Bill was introduced in 1910: this meant that the HoL could not veto financial bills and any other bills vetoed, will only be delayed for 2 year (suspensory veto). However for this to become law it had to be accepted by the HoL themselves.
- 1909 People's Budget
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