National Government

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National Government. The Labour government of Ramsay MacDonald in 1931 faced a severe economic crisis with more than 2 million unemployed and a run on the pound. It fell in August when the cabinet split on a proposal to cut unemployment benefit. MacDonald consulted Baldwin, leader of the Conservative Party, and Sir Herbert Samuel, leading the Liberals during the illness of Lloyd George. Samuel urged a coalition and Baldwin agreed to serve under MacDonald. Intended as a temporary measure, the coalition stayed in power until the Second World War when Churchill in 1940 formed a wartime national government. MacDonald's new cabinet contained four Conservative ministers, four Labour, and two Liberals, but the great majority of the parliamentary Labour party repudiated the deal and expelled MacDonald. In the general election which followed in October 1931, the National Government won a landslide victory with 473 Conservative seats, 35 National Liberals, and 13 National Labour, against a Labour opposition reduced to 52 seats. Baldwin replaced MacDonald as prime minister in June 1935, dissolved in November, and won a handsome majority, though Labour went up to 154 seats. Baldwin gave way to Neville Chamberlain in 1937. In Labour demonology, MacDonald was the arch class and political traitor and the National Government a Tory sham. The poor showing of National Labour in the 1931 election (when MacDonald was himself beaten at Seaham) gave support to the second opinion, but MacDonald was under the impression that he was putting country before party and probably committing political suicide. A majority of his Labour cabinet had, after all, supported the unemployment benefit cut. George V's role has also been criticized. He urged MacDonald to remain as prime minister. But monarchs are often disposed to favour governments of national unity and the king had acted on the advice of the three party leaders.

J. A. Cannon

National Government (UK) The term used to describe Britain's coalition government of 1931–40. It was formed in August 1931, when a financial crisis split the Labour government, with nine ministers resigning rather than cut unemployment benefits. To cope with the effects of the Great Depression, it was formed on 24 August 1931 and was supported by all parties, except the majority of the Labour Party. Led by MacDonald, it increased taxes and reduced benefits and public-sector salaries. This faced some public opposition, with some naval ratings staging the Invergordon Mutiny. This resulted in further financial panic, and sterling fell by 25 per cent. Britain then abandoned the Gold Standard and proposed a policy of protectionism. In October, the members of the coalition agreed to fight an election together, and won a massive total of 554 seats (473 were Conservative, thirteen Labour, thirty-five Liberal National, thirty-three Liberal) against Labour's fifty-two seats. MacDonald formed a second National Government, which implemented protection with a 10 per cent general duty on imports in the March 1932 Import Duties Act, and then concluded the Ottawa Agreements later in the same year. However, the government was increasingly dominated by the Conservatives. Samuel's Liberals resigned over the Ottawa Agreements, and MacDonald was replaced as Prime Minister by Baldwin in 1935. Baldwin won a general election in that year, and held office until 1937. He was replaced by Neville Chamberlain, who was Prime Minister until 1940. By 1935, the government had become Conservative in all but name, even though MacDonald himself remained a member (as Lord President of the Council) until 1937.

National Government The Labour government of Ramsay MacDonald in 1931 faced a severe economic crisis with more than 2 million unemployed and a run on the pound. It fell in August when the cabinet split on a proposal to cut unemployment benefit. MacDonald consulted Baldwin, leader of the Conservative Party, and Sir Herbert Samuel, leading the Liberals during the illness of Lloyd George. Samuel urged a coalition and Baldwin agreed to serve under MacDonald. Intended as a temporary measure, the coalition stayed in power until the Second World War. In the general election which followed in October 1931, the National Government won a landslide victory with 473 Conservative seats, 35 National Liberals, and 13 National Labour, against a Labour opposition reduced to 52 seats. Baldwin replaced MacDonald as prime minister in June 1935, dissolved in November, and won a handsome majority, though Labour went up to 154 seats. Baldwin gave way to Neville Chamberlain in 1937. In Labour demonology, MacDonald was the arch class and political traitor and the National Government a Tory sham.