How "national" was the national government and what was its political impact?

How "national" was the national government and what was its political impact?

How "national" was the national government?

The role of the new government was to pass the National Economy Act. The Aact proposed less sevre cuts and a higher raise in taxes than that agreed by Labour. The act mostly refelcted public opinion at the time. It suggested a 15% cut to uncovenanted benefit which had concerned many as it had risen by 2.5 times more than it was in 1921.

The attempt to maintain the pound's value failed, the Invergordon mutiny caused a further run on gold reserves and Britain was taken off the gold standard, pressure from the conservatives led to an election in October.

What was its Political impact?

>Labour felt a considerable impact. The ILP was reduced to 5 MPs and most ministers of the recent cabinet lost their seats. They suffered a major defeat and were severely disunited. The ILP left the party in 1932 and the left…