chapter 5 British Domestic politics 1929-39

how successful was Labour's domestic policy in 1929-31?

the situation in 1929

• MacDonald faced serious problems, did not have complete freedom of action
• labour was a minority government
• had a majority of 27 over the conservatives
• 59 liberals held the balance of power
• even if he had wanted to pursue radical policies, this would have been difficult
• the HoL could no longer completely prevent legislation from being passed, but could still obstruct and delay measures
• conservatives had a majority in the HoL
• few labour peers

• economic situation was not strong
• unemployment- 1.2 million
• concentrated in areas of Britain's heavy industry which had not recovered from the decline in exports after WW1
• issue had been prominent in the election campaign in 1929
• calls in the labour party and by the liberals for imaginative acts to reduce unemployment and promote economic growth
• MacDonald had moved away from distinctive socialist policies
• party was committed to free trade
• leadership was concerned to show that Labour was a moderate party of government for all the people and deserved the confidence of the banks and financial institutions
• any solutions to unemployment that involved raising taxes or irresponsible borrowing to create jobs would threaten confidence in Britain
• it was important that Labour should not weaken international confidence in the pound as the earnings from invisible exports were so high and they depended on the pound being a rock solid international currency

• largely unsympathetic press
• civil service was likely to raise objection to any radical measures
• it was unlikely that Labour would offer any substantial domestic change

• MacDonald showed himself to be more interested in foreign and imperial matters than in domestic policy- much less restrained by his party's lack of an overall majority
• discussions on the future of India involved much cross party agreement
• foreign policy did not become a strong party issue- MacDonald and foreign secretary Henderson struggled with the international repercussions of the international slump

the labour ministers

• Arthur Henderson- foreign secretary
• J.H.Thomas- Lord Privy Seal, minister responsible for unemployment
• both were from a moderate trade union background
• Philip Snowden- chancellor, entered political life through the ILP, conservative in outlook, committed to a financial policy which maintained a balanced budget and would be acceptable to Britain's important financial sector
• John Clynes- home secretary, veteran
• Sidney Webb- former fabian, Baron Passfield, colonial secretary
• left wing of the party was not strongly represented
• Oswald Mosley- more radical and energetic, assisted Thomas
• first female Cabinet minister- Margaret Bondfield
• not a radical cabinet

domestic measures 1929-31

• domestic policy inhibited by growing economic problems
• declining trade reduced revenue and the money available for reforms and improvements
• legislative record was limited
• there were some achievements

• Housing Act 1930- passed by Arthur Greenwood, restored the subsidies for local authorities to build houses that had been given in Wheatley's Act, began subsidies for slum clearance
• slum areas of housing existed in most inner city areas, were generally old neglected unhealthy places to live
• many of the houses had originally been built for workers…