The Second Labour Government

The Second Labour Government

1. Foreign Policy

   • MacDonald in Washington D.C. in 1929
   • Naval Conference in London 1930 reducing tonnage of Navy and thus easing US tension
   • Young Plan 1929 under Henderson, lowered German Reparations and removed Allied troops from the Rhineland

2. Social Policy

   • Unemployment Benefits increased, no longer had to prove that you were seeking employment

3. Housing

   • Greenwood's Act 1930
   • Increases subsidies for housing
   • Curtails the 1931 unemployment crisis

4. Industrial Relations

   • Coal Miners Act 1930 reduced hours from 8 to 7 and a half

5. Parliamentary Failures

   • Education Bill -- due to lack of Liberal support
   • Bill to Create Maximum Work Hours -- fails due to Liberal support
   • Repeal of the trades Dispute Act 1927

6. Wall Street Crash -- October 1929

   • Exports declined by half from 1929 - 1931

7. Unemployment

   • Rises every month from November
   • July 1930: 2 million unemployed
   • December 1930 2.5 million
   • Cost of benefits in 1928, £12 million. By 1931, £125 million
   • Mosely's solution rejected in May 1930. The 1931 15 man think tank set up, comes up with the same solution, but MacDonald refused to U-turn
   • Public expenditure in February 1930 was £70 million, but by September 1930 it had reached £140 million. By June 1931, the Royal Commission called for a 30% cut in unemployment benefits
   • Half wanted cuts on benefits, the others, headed by Henderson and Bevin in the TUC, stood by Labour's politics
   • Pearce: 11-9 split in favour of a £78million reduction, which Snowden described as submission to intimidation
     • Therefore the Labour Party broke up

8. Election Results

   • Conservatives, 260 seats
   • Labour 288 seats