1910- Peoples budget, constitutional crisis and Irish home Rule

1910- Peoples budget, constitutional crisis and Irish home Rule

1. liberals in power pushing through reforms, but can't pay for

   • new reforms
     • People's Budget 1909
       • raise income tax on incomes over £3000 per annum
       • increase duties on spirits, tobacco, liquor licences and stamp duties
       • increased death duties on estates valued between £5000 and £1 millions pounds
       • introduction of land tax
         • the increased value of land when it changed hands (20 per cent)
         • the annual value of land
         • the annual value of land leased to mining companies
       • set up a road fund for building and maintaining roads by putting taxes on petrol and introducing licences for motor vehicles
       • introduce child allowances at a rate of £10 a year for every child under the age of 16. this was payable to families with annual income of less than £500
   • People's budget
     • land tax stamp duty rise in income tax
     • passes through the House of Commons but the lords reject it
       • this causes outrage as the lords aren't supposed to veto money bills
         • this causes the constitutional crisis
           • triggered by Lloyd George's Budget proposals of 1909
           • didn't lie In the House of Lord's as opposition of the principles of 'new liberalism'
           • due to the House of Lords vetoing the People's Budget
             • Lords originally didn't get involved in money bills
         • Asquith calls an election (Jan 1910) and the liberal majority is wiped out
           • to maintain his power, Asquith needs support and gets it from the Irish nationalist party
             • The Irish nationalists want Home Rule in return for their support
               • Home Rule won't be passed without reform of the lords as they always veto it
                 • second election, this time on reform of the House of Lords but the vote doesn't change
                   • the parliament Act was passed in 1911 and meant that the lords could only veto a bill twice, as on the third attempt it would be law
                     • April 1912, Asquith's got to introduce the third Home Rule bill (Gladstone has already had 2 attempts)
                       • July 1912, Benar law (leader of the conservative party)makes a speech saying he would go to any lengths to support the ulster nionists against Home Rule
                         • September 1912, Edward Carson (leader of the Ulster unionists) creates the blood covenant
                           • January 1913, crisis escalates and the UVF is created
                             • there are several conferences to try and resolve the issue but no one can agree
                               • they can't decide what should be excluded and for how long
                                 • March 1914, Curragh mutiny where the British Army refuse to enforce Home Rule by force if necessary, 50 officers resign
                                   • 21st july 1914, another conference is held to try and resolve the issue
                                     • August 1914 war breaks out and both Redmond and Edward Carson declare their support but for different reasons
                                       • September 1914, the third Home Rule Bill is passed with a suspensory clause until the end of the war- Carson is outraged
                               • As a compromise, Asquith would give home rule but Ulster needed to stay part of England. Redmond outraged because of the religious divide in Ireland