Britain 1945 1990 Britain in 1945 What were

Britain 1945 -1990

Britain in 1945 What were the effects of WW 2 on Britain?

Economic impact of the war Britain effectively bankrupt by 1945. Loss of trade and markets during the war The war cost 28, 000 million pounds Britain became a debtor nation Cost of Lend-Lease to Britain. Between 1944 -45, 83% of public spending went on the war • At its peak, Britain was spending 50% of her total national income on the war. • • •

Economic expenses in 1945 • Britain did not immediately de-mobilise her military forces –Cold War and problems within the empire (e. g. Palestine and India) • Cost of researching her own atomic bomb (1952 first test)

Economic expenses in 1945 • War damage: 3 ½ million homes destroyed

Other problems to solve after WWII • • • India wanted independence Violence in Palestine Industry outdated, worn out Homes destroyed Desire for social welfare and more equal society- “A New Jerusalem” Night of the trains 1945 Haganah

What was the impact of the war on society? • The ‘Blitz’ spirit but… • Propaganda • Rich not bombed as heavily as the poor! • Black marketeers

What was the impact of the war on society? • Evacuation

What was the impact of the war on society? • Shared experiences between town and country, middle and lower classes. • Concern over welfare of inner city children especially – education (Q: what’s that? A: a sheep!)

The Beveridge Report • Post-war planning after the First World war had been poor. Churchill’s government didn’t want to repeat the same mistakes. • An inquiry into Britain’s social conditions was led by Sir William Beveridge. • Led to the Beveridge Report – One of the most significant social policy documents of the century

The Beveridge Report’s Five Giants

The Beveridge Report Proposed: • a plan of National insurance (not means tested) • Social security – unemployment benefit, health care, sickness benefits (etc) • The government would provide a social safety net for everyone in return for weekly contributions

What was the impact of the war on society? • Women • Massive contribution of women to the war effort (although 75% returned to their domestic role at the end of the war) • Nevertheless, the next generation of women would see some of the benefits

What was the impact of the war on society? • The growth of the state Note: (Typically a strong centralised state is a feature of Socialism) • Conscription • Direction of workers to specific areas of the economy • Pay and hours controlled by state • Rationing

What was the impact of the war on society? • The growth of the state • A. J. P. Taylor considered Britain to be more fully Socialist by 1945 than anything conceived in Soviet Russia!

What was the impact of the war on society? Politics Coalition government during the war • Churchill - PM (Tory) • Attlee – Deputy PM (Labour) • Other Labour MP’s such as Ernest Bevin, Stafford Cripps, Aneurin Bevan

Why did Labour win the 1945 elections? • Churchill is often rated as one of the greatest Britons of all time, and is most well remebered for his powerful wartime speeches, and yet having ‘won’ the war, Churchill lost the ’ 45 elections – Why?

Why did Labour win the 1945 elections? Tory weaknesses • Overconfidence • Poor speeches by Churchill (stupid Gestapo remark about Labour)

Why did Labour win the 1945 elections? • Tory weaknesses • People tired of ‘Blood, sweat and tears’ • Tories blamed for mismanagement of the economy in the thirties as well as Chamberlain’s Appeasement policy.

Why did Labour win the 1945 elections? Labour strengths – • Openly supported the Beveridge report. • War often followed by an idealistic period. • Changing social attitudes.

Why did Labour win the 1945 elections? Labour strengths • Progressive and inspired election campaign ‘Let’s go forward together’ • Fear of a Socialist government lessened by wartime conduct of Labour in power and wartime controls

1945 election results • Labour ‘landslide’ Note: ‘ 1 st past the post’ system • • Labour – 393 seats (47. 8%) Tories – 213 seats (39. 8%) Liberal – 12 seats (9%) Others – 20 seats (3%)

Labour Government 1945 -1951 Assess the impact of the Labour governments, 1945– 51.

Composition of Labour government • • Clement Atlee-Prime Min. Ernest Bevin-Foreign Secretary Aneurin Bevan-Health Minister Hugh Dalton -Chancellor of the Exchequer (until 1947. He resigned in 1947 because of a budget leak). Replaced by Stafford Cripps

Who’s who?

Economic change under Labour • Followed basic Keynesian economics (as opposed to Friedrich Von Hayek (‘The Road to Serfdom’ 1944)

Economic change under Labour • Britain as a whole was undergoing sectoral shift, moving from an industrial economy towards a service based one. • Economic situation in 1945?

Winter of ‘ 46 -’ 47

Nationalisation • To prevent unemployment, increase production, restore trade, profits to Welfare system, modernize industry (also for ideological reasons) • • Electric and gas Airlines RR Road haulage (de-nationalised in 1953) Coal Iron/steel (de-nationalised in 1953) Bank of England

Austerity-Cripps • • • Rationing Food prices kept down Wage restraint High taxes Pound devalued Electricity rationed 46 -47 • Why? – To pay for welfare – To gain efficiency in industry/exports – Few complaints (initially)

Snoek? • Imported from South Africa. Inedible. Eventually sold off as cat food.

U. S. aid • Keynes managed to negotiate a 3, 750 million dollar loan, to be repaid at 2% interest by 1951 (a lot less than he wanted) • Bevin was instrumental in securing US aid in the form of the Marshall Plan. Received 3, 000 million dollars (more than any other country).

Assessment of Labour’s economic record • 98. 5% employment (except during winter of ‘ 46 -’ 47 • Social reforms went ahead • Would help pave the way for the age of affluence to follow • Industrial production increased by a third • Exports grew by 77% in the period, imports only by 15% - By 1948 there was a trade balance • Share of world exports grew 4% to 21% in 1950

Establishment of Welfare State –(A New Jerusalem) • ‘From cradle to grave’. • Social security and health – National Insurance Act 1946 – 25 p a week from wages, employees and gov’t – Sickness benefits, unemployment, retirement, widows, maternity – National Assistance Act 1948 • To cover loopholes in Nat’l Insurance Act

Health Care – NHS-(National Health Service) Bevan – Enacted 1946. Came into force 1948 – Free health service run by state • Doctors, dentists, eyeglasses, prescriptions – Hospitals nationalized • Huge success but expensive • Many doctors resented being civil servants • Bevan resigned 1950 when prescription charges introduced

Housing – An estimated 750, 000 ‘needed’ in 1945 – Housing built (750, 000 by 1951), but had underestimated the original figure so still shortages. – Rent control – New Towns Act 1946 • 12 new towns. Rented housing. • To get people out of slums • Prefabs and Council housing built

Education • Butler Education Act 1944 – Free secondary education for all – New schools (6000 built), and universities (11 new universities built). – Grants. – School leaving age 15 – Meals, milk, medical service in schools – Secondary Modern Schools set up (but considered second class schools)

Assessment Quick recovery after war • Welfare State accomplished – NHS=Benefits from the cradle to the grave • Education for all Full employment reached (nationalisation, building homes) • More homes built than anywhere in Europe • India decolonized • Marshall Plan loan

Criticisms Put welfare state before industry and economy. Welfare state more expensive than expected Behind Europe Devalued pound made imports more expensive Housing need was underestimated and still housing shortage • Class system remained. • More possibilities for rich in education • •

Foreign Policy under Labour • Britain’s place in the world changed after WWII • Empire – Indian independence – Malaya-communist rising. Civil War – Gave up mandate in Palestine to UN 1947 • Britain had promised a national home for Jews in Palestine (Balfour Declaration 1917) but had also promised independence to Pakistan if if helped in WWI. • After WWII, much tension in Palestine.

Foreign Policy con’t • Europe – Bevin helped come up with ERP 1947 • Cold War – Attlee present at Potsdam. Backed USA – Greece-Britain fought communist rebels. US took over 1946 – Berlin Airlift-RAF carried supplies – Involved in Korea

1950 elections • • Labour – 315 seats (46%) Tories - 298 seats (43. 5%) Liberal – 9 seats (9%) Others – 3 seats (1. 5%) Lack of majority led to 1951 elections • Labour – 295 seats (49%) • Tories - 321 seats (48%) • Liberal – 6 seats (2%) • Others – 3 seats (1%)

Why did Labour lose the 1951 election? • People tired of rationing. Conservatives promised prosperity and end of rationing • Labour seemed tired after all its accomplishments (some had been in power for 11 years) • Split in party due to prescription charges • Armaments increased during Korean War meant shortages • Labour lost by small margin

To what extent did the Labour governments of 1945– 51 change Britain?