OCR History B As: Liberal Sunset: The Peoples Budget of 1909

What was the Budget


Why was it rejected

(Read My Coalition crisis notes and The parliment act to find resoloution)

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Preview of OCR History B As: Liberal Sunset: The Peoples Budget of 1909

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The Liberal Reforms: The People's budget 1909
The 1909 budget was going to have to be a major reforming piece of legislation. There was
no alternative to this because increasing expenditure on defence, along with increased
spending on social welfare, meant taxation had to be increased.
It was an accepted constitutional practice that the House of Lords would not amend or
reject financial legislation
Proposal in the Budget:
Raise on income tax
Increased duties on spirits, tobacco, liqueur licences and stamp duties
Increased death duties
Introduce land taxes
Set up a road fund for the building and maintenance of roads
Introduce child allowances
many had their doubts
Irish ­ feared would damage whisky export trade
Brewers outraged at having to pay duty
Motorists unimpressed
Landowners felt they were being subjected to unfair treatment
Why was it rejected?
Defend protectionist position against major shift towards free trade
Hostility towards tax increases ­ Lords protecting their interests and a large
proportion of their supporters
opposition to new liberalism & idea of redistribution of wealth
LG Budget a declaration of war on poverty
Budget went beyond normal financial provision encouraged them to break tradition
and veto bill
Leaning to far towards socialism
Lords felt powerless due to 1906 liberal landslide
Naval race ­ money needed to fund in crease in navy to meet rise of German power
­ Lords thought increased taxation was a personal assault
Long term tension between the Lords and Liberals
In November 1909 the Lords rejected the budget
Asquith immediately asked for the dissolution of parliament and a general election
Liberals got a narrow majority (275 seats to conservative 273) so could only continue in
office as a minority government
In result of the election the Lords had no choice but to pass the budget, but the Liberals
were set to bring in a parliament bill to limit the Lords powers for future legislation.


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