History Domestic Issues - KQ4 - National Government Policies

KQ4 - focussing on how the National Government dealt with the economic problems of the 30s.

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KQ4 - National Government Policies

Devaluation of the Gold Standard - 1931   :) 
The pound fell in value by 20%. British Exports made cheaper and more competitive.  
Low Interest Rates - 1931   :|
Rates lowered from 6% to 2%. Stayed like this for 7 years. Didn't create much business investment, but would have helped in some ways. 
Expenditure Cuts To Balance Budget - :|
Government expenditure cut by £70 million. Unemployment benefit cut by 10%. Income tax raised 22.5% - 25%. Loan form abroad was negotiated. Didn't counter depression.
Transfers and Work Schemes   :( 
44,000 encouraged to move, 30,000 put on courses. Was not a large amount. 
Protection -    :( 
Import duties were imposed, but these had no real effect of economic recovery
Special Areas - 1935-7    :( 
Only 50,000 jobs created, and some areas of need were not designated.  
Unemployment Act - 1934    :( 
Unemployment benefits overhauled but the means test remained. Not on the scale of other countries. 

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