New Liberalism: The Labour Party

• Amalgamation of 3 socialist groups:
  • Social Democrat Federation, Fabians and the Independent Labour Party (some trade unions also joined)
• Due to different groups they didn't all have the same aims or methods
• The main aim was to represent the working class' interests in Parliament
• Wanted to do the best to improve life for workers

Social Democratic Federation

• Included H. M. Hyndman, Tom Mann and John Burns
• Advocated violent revolution to overthrow capitalist system
• They gained publicity due to marches and demostrations
• Example: Bloody Sunday in Trafalgar Square, 1887

Fabian Society

• Middle class intellectuals such as Beatrice Webb
• Believed land and industrial capital should be owned by community

Poverty and Poor Social Conditions

• 30% of working class were living close to starvation
• Agricultural and industrial depressions had worsened
• More unemployment with people in job having low wages
• Henry George blamed poverty on greed of landowners, 1881
• There was impatience among the radicals with Gladstone

• After the 1906 Election, 30 MPs of the LRC formed Labour
• In 1900 LRC Conference agreed a 'distinct Labour Group in Parliament' not a set of policies
• Policies would be made when Labour members got into parliament
• There was no idea of what they stood for
• 1906, not all Labour members wanted the same since half were socialists
• It was seen as a sort of parliamentary extension of the trade unions working for Labourism
• Labour represented the working class
• Labour members: People who were born into it and most started as industrial labourers

Labour MPs struggle after the Labour Manifesto

• Labour was strongly influenced by Nonconformist traditions
• 18 out of 30 MPs were nonconformists
• 12 supported teetotalism (not drinking)
• A survey showed that MPs were more influenced by religious works than Marx

• Major priority after LRC formation was to get MPs elected
• Immediate impact was disappointing
• Only 10 trade unions decided to affiliate to Labour and membership was 200,000
• October 1900 Election: LRC put up 15 candidates but only 2 were successful
• Keir Hardie and Richard Bell: both from 2 member constituencies with Liberals winning the other seats
• At the time Labour had a money shortage and little trade union support
• Taff Vale changed the situation due to unfair treatment of workers
• Ramsay MacDonald wrote to all trade unions about the need for large Labour representation
• 1903: There were 168 further unions with Labour with 850,000 union members
• 1904: had levy of 1 penny, it increased in 1907 to 2 penny
• There was an improved financial situation due to Political Levy

• The Electoral Pact between LRC and Liberals agreed in 1903 brought important boost in terms of seats in Parliament
• MacDonald and Gladstone (the Liberal Whip) agreed Liberals wouldn't run against candidates in certain constituencies
• Liberals did this pact so they wouldn't have to fight a 3 cornered contest
• If Labour and Liberals ran it would split the anti-conservative vote = conservatives win
• Liberals would also then save political expenses where they didn't filed Liberal candidates
• It allowed Labour to make their first breakthrough
• 1906 General Election, 50 Labour candidates stood and 30 were not opposed by Liberals
• 29 were successful and formed the Labour Party
• Trade Disputes Act, 1906, reversed Taff Vale decision
• The Act was vbased on Labour's own Bill
• Gave small improvements to workmen's compensation act
• Helped introduce School Meals and Medical Inspections Act

• Greater trade union support was vital to increase party strength
• Miners Federation of Great Britain was to affiliate in 1908: it was a huge step forward
• 1908: 45% of miners who voted were against joining Labour
• 1910: 50% of trade unions were affiliated with Labour

Broader Picture

• 1910 General Election Labour had few MPs
• Labour broadly supported Liberal Government over the People's Budget and House of Lords reform
• There was however varied views on the National Insurance Act, 1911
• Labour increased councillors from 91 to 171 although it was still weaker than the Liberals and the Conservatives
• Labour relied mainly on trades councils
• Constituency Labour parties consisted of delegates from trade union and socialist societies

• Gained trades Dispute Act in 1906
• Got measures on school meals
• Trade Union Act 1913
• Succeeded due to Liberal help
• Mopst Labour elected due to no Liberal opposition, they had to pledge support to Liberals