How did DLG's 1909 Budget Led to a Constitutional Crisis?
DLG was appointed Chancellor of the Exchequer and had to present the budget the following year, announcing what the government would spend and how they would raise the money. DLG needed to find the money whilst ensuring support and also getting the budget passed by the House of Lords.
- Government needed an extra £10 million for OAPs and 8 dreadnoughts.
- The depression reduced income by £6 million
- Need money for National Insurance bill
- Conservatives wanted taxes on imports to create wealth and Liberals want free trade.
- Labour and left wing Liberals wanted tax on land.
- Non-conformist wanted to restrict/ tax sales on Alcohol.
- Public support was falling, 10% swing against the Liberals.
- Needed support of the Middle and Working classes.
- The House of Lords was dominated by Conservative landowners.
- DLG criticised and thought to fail.