The First Labour Government of the United Kingdom lasted from January to November 1924. The Labour Party, under James Ramsay MacDonald, had failed to win the general election of December 1923, with 191 seats, although the combined Opposition tally exceeded that of the Conservative government creating a hung parliament. Stanley Baldwin remained in office until January 1924.
The Conservatives had won the previous general election held in 1922 shortly after the fall of the Lloyd George Coalition when, along with their Unionist allies, they had won 344 seats. This seemed a significant enough majority to expect a full-parliamentary term. Nevertheless, shortly after the election the Conservative leader Andrew Bonar Law died, and was replaced by Baldwin, who reneged on his predecessor's electoral pledge not to introduce protective tariffs. As such, Baldwin sought a fresh mandate from the electorate in 1923. The result was decisive against protectionism and it was clear the Conservatives had lost, despite remaining the largest party. Baldwin had little chance of remaining prime minister when the balance of power was held by the Liberal Party under H. H. Asquith, who had campaigned vigorously for free trade, to the point of healing the rift that existed between the Asquith and Lloyd George factions. Baldwin advised the King to send for MacDonald, since the Labour Party held more seats in the Commons than the Liberals. MacDonald accepted the King's commission later that day, arriving with his Labour colleagues, to the amusement of many and dismay of others, in full court dress.
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MacDonald had become Labour's first proper leader in 1922. As well as being Prime Minister, he became his own Foreign Secretary, a dual role which he performed well enough, but which alienated the second man in the party, Arthur Henderson, who became Home Secretary. Philip Snowden, the evangelical ex-member of the Independent Labour Party (ILP) became a rigidly orthodox Chancellor of the Exchequer, while the next two prominent members of the party, Jimmy Thomas and J. R. Clynes, became Colonial Secretary and Lord Privy Seal respectively. The Fabian Sidney Webb, who had, along with Henderson, been instrumental in conceiving Labour's 1918 programme 'Labour and the New Social Order' which had committed the party to nationalisation (Clause IV), was appointed President of the Board of Trade; another Fabian, Lord Olivier, became Secretary of State for India. A former chairman of the parliamentary party, Willie Adamson, became Scottish Secretary, while left-wingers Fred Jowett and John Wheatley became, respectively, First Commissioner of Works and Minister of Health.
The Cabinet was characterised by a moderate trade union feel, although it also contained a few Liberals. Only three members had previously been ministers (two only briefly): Richard Haldane, 1st Viscount Haldane (ex-Liberal), Arthur Henderson and J. R. Clynes; though others had been under-secretaries.
The main achievement of the government was that it showed itself to be 'fit to govern'. Although this might not have meant much in terms of concrete policy-making, it at least did not alarm voters who may have feared that the party would dismantle the country and promulgate 'socialism'; although, in any case, its tenuous parliamentary position would have made radical moves near impossible. Hence, Labour policies such as nationalisation, the 'capital levy' taxation and public works programmes to alleviate unemployment were either played down or ignored altogether. However, to act 'respectably', as any other government would have, was a major component of the MacDonald electoral appeal and strategy. Indeed, some historians have seen in this time an electoral consensus that existed between MacDonald and his Conservative counterpart Baldwin to maintain the stability of the electoral system and preclude any radicalism that might have alienated voters or exacerbated crises such as unemployment. By 1929 voters felt able to trust Labour and thus they were voted back in again.
Despite lacking a parliamentary majority, the First Labour Government was able to introduce a number of measures which made life more tolerable for working people[1].The main achievement of the government was the 1924 Wheatley Housing Act, which MacDonald dubbed 'our most important legislative item'[2]. This measure went some way towards rectifying the problem of the housing shortage caused by the disruption of the building trade during the First World War and the inability of working-class tenants to rent decent, affordable housing. Wheatley was able to provide public housing to council tenants, as against the previous government's commitment to privatisation. This landmark Act subsidised the construction of 521,700 rented homes at controlled rents) by 1933, when the subsidy for encouraging local authority housing construction was abolished.[3]
According to the Labour Party historian G.D.H. Cole,
“What it could do and did achieve was to undo a good many of the administrative effects of the “Geddes Axe,” to pass several valuable measures of social reform, and to make a somewhat faint-hearted attempt at coping with the unemployment problem by the institution of public works"[4].
Other domestic achievements of the First Labour Government included:
• More generous provision for the unemployed, with increases in both children’s allowances and in unemployment benefits for both men and women[4]. Unemployment benefit was increased to 90p a week for men over the age of eighteen and 75p for women, while a “genuinely seeking work” clause for claiming unemployment benefits was abolished.[3] The “gap” between periods of benefit under the unemployment insurance scheme was abolished[5], and eligibility for benefits was extended[4]. The household means test for the long-term unemployed was removed[6], more people were made eligible for unemployment benefits[7], and uncovenanted benefits (beyond those covered by insurance) were made a statutory right.[5]
• Improvements in pension provision, with increases in both old-age pensions[7] and the pensions of ex-servicemen and of their widows and children.[8] Improvements were made in the condition of old-age pensioners by allowing small incomes from savings to be disregarded in calculating the pension due.[4] As a result of this change, 60,000 elderly people whose meagre savings had previously reduced their pension entitlement received the full state pension.[8] Eligibility for the state pension was also extended so that it covered 70% of the over-seventies,[6] and 150,000 elderly people who had never received a pension before were now entitled to them. In addition, changes were made which allowed for pensions to be transferred to a surviving parent of a dependant who had a pension.[8] An Old Age Pensions Act was also passed which guaranteed a weekly pension of 50p to people over the age of seventy who earned under 75p a week.[3]
• Major improvements in education. Local authorities were empowered, where they wished, to raise the school-leaving age to 15, the adult education grant was tripled, maintenance allowances for young people in secondary schools were increased, state scholarships (which had previously been in suspense) were restored, the proportion of free places in secondary schools was increased, approval was given to forty new secondary schools, a survey was carried out to provide for the replacement of as many of the more insanitary or obsolete schools as possible[4], and forty was set as the maximum class size in elementary school.[1] Restrictions on education spending imposed by the previous government were removed, while local authorities were encouraged to increase the number of free secondary school places.[3] In addition, an Education Act was passed which created an English secondary school system between the ages of 11-14.[9]
• The Agricultural Wages (Regulation) Act, which restored minimum wages for agricultural workers. County committees were established with the power to fix wages, together with a central wages board to supervise the county awards. The act helped bring about a substantial improvement over most of the country[4], with agricultural wages being quickly increased to 30 shillings a week (a higher level in certain counties) under the wage committees.[5]
• Cuts in both direct and indirect taxation, which were hailed as representing a victory for working people, with the chancellor Philip Snowden describing the programme as representing “the greatest step ever taken towards the Radical idea of the free breakfast table.”[7]
• The inclusion of miner’s silicosis within the provisions for workmen’s compensation[4], under the Workmen's Compensation (Silicosis) Act of 1924.
• A law which modified the right of a landlord to obtain possession of a house for his own family’s use, where unnecessary hardship would be caused to the tenant.[4]
• The Protection from Eviction Act of 1924, which provided some degree of protection to tenants “in the face of landlords seeking vacant possession and rent rises.”[10] This legislation protected tenants from eviction by landlords who attempted to obtain “decontrolled” status for their properties in order to raise tents.[3]
• The London Traffic Act 1924, which provided for the regulation of London traffic.[4] The legislation regulated privately-owned public transport, setting timetables and safety standards.[3]
• The introduction of a subsidy for sugar beet cultivation to support agriculture.[11]
• The provision of financial support to municipal works to reduce unemployment.[12] Although relief schemes funded by the chancellor Philip Snowden had little impact on reducing unemployment, the registered rate of unemployment fell from 11.7% in 1923 to 10.3% in 1924.[13]
• The allocation of government funds for the repair and modernisation of 60,000 government built houses.[14]
• The removal of the restrictions imposed by the previous government on spending by the Poplar Board of Guardians.[3]
• The removal of the restrictions introduced by the previous Coalition government on state grants to the principal public health grant earning services (including maternity and child welfare, tuberculosis, and venereal disease) were removed. This was followed by a circular issued to local authorities to this effect and enabling them “to carry out more effectively their public health powers under the law.”[8]
• An extension of child welfare and maternity services.[8]
• The extension of entitlement to sickness allowances to war widows and orphans.[8]
• The development and extension of schemes for roads and bridges, land reclamation and drainage, and afforestation.[8]
• The launching of a national electrical policy and a national road policy.[8]
• The construction of two additional treatment centres for those afflicted by venereal diseases.[8]
• The passage of the National Health Insurance (Cost of Medical Benefit) Bill, which revised the capitation fee paid to the doctors.[8]
• The restoration of sickness grants.[8]
• The removal of all ex-Service patients who had been treated as "pauper lunatics" under former Governments from being treated in that way. As a result of this change, they were now paid for out of public funds.[8]
• The introduction of various measures to improve mine safety, as characterised by the application of new rules, attempts to enforce safety regulations, and the appointment of additional inspectors.[15]
• Higher spending on education and health.[16]
Many historians have argued that the First Labour Governments’ most notable achievements were in foreign affairs, of which Ramsay MacDonald had devoted much time and effort, having taken the posts of both Prime Minister and Foreign Secretary. Germany had failed to maintain reparation payments in the years following the end of the Great War, and France in response occupied Germany’s industrial heartland, the Ruhr. The Dawes conference was subsequently held to figure out a solution to the crisis, and in August 1924 it concluded that Germany had to achieve economic stability before paying out any reparations. Although France refused to adopt the Dawes Plan, MacDonald spent most of his time as Foreign Secretary]] trying to win over the French. Macdonald first held talks with both the Belgians and French at Chequers and then hosted an Inter-Allied conference in London in July 1924[6].
Through sharp negotiating skills and powers of persuasion, Macdonald was able to successfully make the Prime Minister of France Édouard Herriot agree to all of the proposals in the Dawes plan, apart from an immediate withdrawal from the Ruhr. That August, fresh agreements on peace and reparations were signed in London between Germany and the Allies. Macdonald’s success in helping to resolve international disagreements at this time was arguably one the First Labour Governments' most significant accomplishments[6].
What eventually helped to bring down the First Labour Government was the fear surrounding the alleged Communist threat. Conservative were quick to point out any 'Red' (Soviet) influence in Britain, one example of this was the 'Campbell Case'. The Communist J. R. Campbell had been prosecuted by the government for publishing an article calling on troops not to fire on strikers. When Labour withdrew the prosecution, it was seen by many as a 'red' influence on the leadership. Herbert Asquith, the Leader of the Liberal Party, called for the appointment of a committee of enquiry as this would allow Labour time to survive the scandal, but MacDonald would not allow it. He said that if MPs voted in favour of the enquiry then the government would resign. They consequently voted for the enquiry with a large majority, so MacDonald announced that the Labour government would resign after only nine months in office. Soon after this resignation, came the emergence of the Zinoviev letter, which has become part of Labour party mythology.
The 'Daily Mail' published a letter apparently written by Zinoviev, the head of the Communist International (Comintern), which asked supporters to prepare for imminent revolution. It is now known that the Zinoviev letter was a fake (documents released by the Public Record Office in 1998 finally revealed the letter to have been a forgery[3]), but it scarcely helped Labour during their election campaign. The Liberals were also becoming increasingly restive about continuing to support the government, while MacDonald's inability to delegate tasks to subordinates was also a factor in Labour's demise. He had taken the position of Foreign Secretary as well as Prime Minister and by the end of the nine months it seemed as if MacDonald had wanted to give up power through fatigue. He once wrote in his diary that he worked from '7am to 1am, with occasional extras'. However, the First Labour Government ultimately showed that Labour was 'fit to govern' and it returned to office five years later.
| Preceded by Conservative Government 1922-1924 |
Government of the United Kingdom 1924 |
Succeeded by Conservative Government 1924-1929 |