Political And Some General Facts

Labour Party

• Labour came into office in 1929 for the second time (briefly in 1924)

• Members didn't have a great experience of running the economy

• Wanted a balanced budget at all times.

• Focused on helping the poor, even with tax income going down

• Raised unemployment pay, passed an act to improve wages and conditions in the coal industry (i.e. the issues behind the General Strike) and pass a housing act which focused on slum clearances.

  Tried, but failed to get the school education age risen to 15 due to opposition

• To balance the budget, in 1931, public sector wages and unemployment pay were cut by 10%, and income tax was raised from 22.5% to 25%. Resulted in a mutiny from the royal navy

• Conservatives forced an election in 1931

• The National Government won, 554 seats, comprising 470 Conservatives, 13 National Labour, 68 Liberals

• MacDonald was still prime minister, but without his Labour party supporting him

Conservative Leader - Stanley Baldwin

• Born in Bewdley

• Family owned an iron and steel making business

• Baldwin was educated at St Michael's School, Harrow School and Trinity College, Cambridge

• Highly skilled businessman businessman

• Later inherited £200,000 and a directorship of the Great Western Railway upon the death of his father in 1908.

Great Depression

• Demand for British products collapsed

• Industries in Britain were smaller, less modern, less efficient and over-staffed compared to overseas

• Exports had fallen by 50% by 1931

• Industrial areas i.e. coal mining and ship building were hit the hardest

• London and the South East of England were hit the least

National Government

• To budget balance, in 1931, public sector wages and unemployment pay were cut by 10%, and income tax was raised from 22.5% to 25%. Resulted in a mutiny from the royal navy

• Unemployment across the country ranged from 25% to 70%

• Unemployed workers in Jarrow marched 300 miles to London to protest against unemployment

• (Would've taken on average 4 days and 4 hours of NON-STOP walking to travel one way)

• Malnutrition, and illness increased

Welfare – Means Test

• Welfare system paid according to the level of contributions for workers and was only payable for 15 weeks of unemployment

• Mass unemployment in the 1930s led to a funding crisis
  

• The Means Test was introduced in 1931, paying out according to need. Severe inspections were carried out to search for hidden savings or earnings. Many found this humiliating and resented it