First Labour Government
Encyclopedia
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 tariff
s. 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
.
, 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.
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.The main achievement of the government was the 1924 Wheatley Housing Act
, which MacDonald dubbed 'our most important legislative item'. 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.
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".
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. 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. The “gap” between periods of benefit under the unemployment insurance scheme was abolished, and eligibility for benefits was extended. The household means test for the long-term unemployed was removed, more people were made eligible for unemployment benefits, and uncovenanted benefits (beyond those covered by insurance) were made a statutory right.
• Improvements in pension provision, with increases in both old-age pensions and the pensions of ex-servicemen and of their widows and children. Improvements were made in the condition of old-age pensioners by allowing small incomes from savings to be disregarded in calculating the pension due. As a result of this change, 60,000 elderly people whose meagre savings had previously reduced their pension entitlement received the full state pension. Eligibility for the state pension was also extended so that it covered 70% of the over-seventies, 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. 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.
• 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, and forty was set as the maximum class size in elementary school. 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. In addition, an Education Act was passed which created an English secondary school system between the ages of 11-14.
• 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, with agricultural wages being quickly increased to 30 shillings a week (a higher level in certain counties) under the wage committees.
• 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
.”
• The inclusion of miner’s silicosis within the provisions for workmen’s compensation, 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.
• 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.” This legislation protected tenants from eviction by landlords who attempted to obtain “decontrolled” status for their properties in order to raise tents.
• The London Traffic Act 1924
, which provided for the regulation of London traffic. The legislation regulated privately-owned public transport, setting timetables and safety standards.
• The introduction of a subsidy for sugar beet cultivation to support agriculture.
• The provision of financial support to municipal works to reduce unemployment. 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.
• The allocation of government funds for the repair and modernisation of 60,000 government built houses.
• The removal of the restrictions imposed by the previous government on spending by the Poplar Board of Guardians.
• 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.”
• An extension of child welfare and maternity services.
• The extension of entitlement to sickness allowances to war widows and orphans.
• The development and extension of schemes for roads and bridges, land reclamation and drainage, and afforestation.
• The launching of a national electrical policy and a national road policy.
• The construction of two additional treatment centres for those afflicted by venereal diseases.
• The passage of the National Health Insurance (Cost of Medical Benefit) Bill, which revised the capitation fee paid to the doctors.
• The restoration of sickness grants.
• 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.
• 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.
• Higher spending on education and health.
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.
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.
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), 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.
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
lasted from January to November 1924. The Labour Party
Labour Party (UK)
The Labour Party is a centre-left democratic socialist party in the United Kingdom. It surpassed the Liberal Party in general elections during the early 1920s, forming minority governments under Ramsay MacDonald in 1924 and 1929-1931. The party was in a wartime coalition from 1940 to 1945, after...
, under James Ramsay MacDonald, had failed to win the general election of December 1923
United Kingdom general election, 1923
-Seats summary:-References:*F. W. S. Craig, British Electoral Facts: 1832-1987*-External links:***...
, with 191 seats, although the combined Opposition tally exceeded that of the Conservative government
Conservative Party (UK)
The Conservative Party, formally the Conservative and Unionist Party, is a centre-right political party in the United Kingdom that adheres to the philosophies of conservatism and British unionism. It is the largest political party in the UK, and is currently the largest single party in the House...
creating a hung parliament
Hung parliament
In a two-party parliamentary system of government, a hung parliament occurs when neither major political party has an absolute majority of seats in the parliament . It is also less commonly known as a balanced parliament or a legislature under no overall control...
. Stanley Baldwin
Stanley Baldwin
Stanley Baldwin, 1st Earl Baldwin of Bewdley, KG, PC was a British Conservative politician, who dominated the government in his country between the two world wars...
remained in office until January 1924.
The Conservatives had won the previous general election held in 1922
United Kingdom general election, 1922
The United Kingdom general election of 1922 was held on 15 November 1922. It was the first election held after most of the Irish counties left the United Kingdom to form the Irish Free State, and was won by Andrew Bonar Law's Conservatives, who gained an overall majority over Labour, led by John...
shortly after the fall of the Lloyd George
David Lloyd George
David Lloyd George, 1st Earl Lloyd-George of Dwyfor OM, PC was a British Liberal politician and statesman...
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 tariff
Tariff
A tariff may be either tax on imports or exports , or a list or schedule of prices for such things as rail service, bus routes, and electrical usage ....
s. As such, Baldwin sought a fresh mandate from the electorate in 1923. The result was decisive against protectionism
Protectionism
Protectionism is the economic policy of restraining trade between states through methods such as tariffs on imported goods, restrictive quotas, and a variety of other government regulations designed to allow "fair competition" between imports and goods and services produced domestically.This...
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
H. H. Asquith
Herbert Henry Asquith, 1st Earl of Oxford and Asquith, KG, PC, KC served as the Liberal Prime Minister of the United Kingdom from 1908 to 1916...
, who had campaigned vigorously for free trade
Free trade
Under a free trade policy, prices emerge from supply and demand, and are the sole determinant of resource allocation. 'Free' trade differs from other forms of trade policy where the allocation of goods and services among trading countries are determined by price strategies that may differ from...
, 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
Court uniform and dress
- Court dress :On formal royal occasions in monarchies the dress worn by those present is prescribed by official regulations.Court dress is worn by all men not entitled to court uniform or military uniform on all occasions of state where such are customarily worn...
.
MacDonald and the Cabinet
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 HendersonArthur Henderson
Arthur Henderson was a British iron moulder and Labour politician. He was the 1934 Nobel Peace Prize Laureate and he served three short terms as the Leader of the Labour Party from 1908–1910, 1914–1917 and 1931-1932....
, who became Home Secretary
Home Secretary
The Secretary of State for the Home Department, commonly known as the Home Secretary, is the minister in charge of the Home Office of the United Kingdom, and one of the country's four Great Offices of State...
. Philip Snowden
Philip Snowden, 1st Viscount Snowden
Philip Snowden, 1st Viscount Snowden PC was a British politician and the first Labour Chancellor of the Exchequer, a position he held in 1924 and again between 1929 and 1931.-Early life: 1864–1906:...
, the evangelical ex-member of the Independent Labour Party
Independent Labour Party
The Independent Labour Party was a socialist political party in Britain established in 1893. The ILP was affiliated to the Labour Party from 1906 to 1932, when it voted to leave...
(ILP) became a rigidly orthodox Chancellor of the Exchequer
Chancellor of the Exchequer
The Chancellor of the Exchequer is the title held by the British Cabinet minister who is responsible for all economic and financial matters. Often simply called the Chancellor, the office-holder controls HM Treasury and plays a role akin to the posts of Minister of Finance or Secretary of the...
, while the next two prominent members of the party, Jimmy Thomas and J. R. Clynes, became Colonial Secretary and Lord Privy Seal
Lord Privy Seal
The Lord Privy Seal is the fifth of the Great Officers of State in the United Kingdom, ranking beneath the Lord President of the Council and above the Lord Great Chamberlain. The office is one of the traditional sinecure offices of state...
respectively. The Fabian
Fabian Society
The Fabian Society is a British socialist movement, whose purpose is to advance the principles of democratic socialism via gradualist and reformist, rather than revolutionary, means. It is best known for its initial ground-breaking work beginning late in the 19th century and continuing up to World...
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
Clause IV
Clause IV historically refers to part of the 1918 text of the British Labour Party constitution which set out the aims and values of the party. Before its revision in 1995, its application was the subject of considerable dispute.-Text:...
), was appointed President of the Board of Trade; another Fabian, Lord Olivier, became Secretary of State for India
Secretary of State for India
The Secretary of State for India, or India Secretary, was the British Cabinet minister responsible for the government of India and the political head of the India Office...
. A former chairman of the parliamentary party, Willie Adamson, became Scottish Secretary, while left-wingers Fred Jowett and John Wheatley
John Wheatley
John Wheatley was a Scottish socialist politician. He was a prominent figure of the Red Clydeside era.Wheatley was born in Bonmahon, County Waterford, Ireland, to Thomas and Johanna Wheatley. In 1876 the family moved to Braehead, Lanarkshire in Scotland...
became, respectively, First Commissioner of Works and Minister of Health.
The Cabinet was characterised by a moderate trade union
Trade union
A trade union, trades union or labor union is an organization of workers that have banded together to achieve common goals such as better working conditions. The trade union, through its leadership, bargains with the employer on behalf of union members and negotiates labour contracts with...
feel, although it also contained a few Liberals. Only three members had previously been ministers (two only briefly): Richard Haldane, 1st Viscount Haldane
Richard Haldane, 1st Viscount Haldane
Richard Burdon Haldane, 1st Viscount Haldane KT, OM, PC, KC, FRS, FBA, FSA , was an influential British Liberal Imperialist and later Labour politician, lawyer and philosopher. He was Secretary of State for War between 1905 and 1912 during which time the "Haldane Reforms" were implemented...
(ex-Liberal), Arthur Henderson
Arthur Henderson
Arthur Henderson was a British iron moulder and Labour politician. He was the 1934 Nobel Peace Prize Laureate and he served three short terms as the Leader of the Labour Party from 1908–1910, 1914–1917 and 1931-1932....
and J. R. Clynes; though others had been under-secretaries.
Domestic policy
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.The main achievement of the government was the 1924 Wheatley Housing Act
Housing (Financial Provisions) Act 1924
The Housing Act 1924 was an Act of Parliament in the United Kingdom.The act increased government subsidies to be paid to local authorities to build housing for rent for low paid workers from £6 to £9. It also extended the time over which the subsidy was paid from 20 to 40 years...
, which MacDonald dubbed 'our most important legislative item'. 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
World War I
World War I , which was predominantly called the World War or the Great War from its occurrence until 1939, and the First World War or World War I thereafter, was a major war centred in Europe that began on 28 July 1914 and lasted until 11 November 1918...
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.
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".
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. 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. The “gap” between periods of benefit under the unemployment insurance scheme was abolished, and eligibility for benefits was extended. The household means test for the long-term unemployed was removed, more people were made eligible for unemployment benefits, and uncovenanted benefits (beyond those covered by insurance) were made a statutory right.
• Improvements in pension provision, with increases in both old-age pensions and the pensions of ex-servicemen and of their widows and children. Improvements were made in the condition of old-age pensioners by allowing small incomes from savings to be disregarded in calculating the pension due. As a result of this change, 60,000 elderly people whose meagre savings had previously reduced their pension entitlement received the full state pension. Eligibility for the state pension was also extended so that it covered 70% of the over-seventies, 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. 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.
• 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, and forty was set as the maximum class size in elementary school. 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. In addition, an Education Act was passed which created an English secondary school system between the ages of 11-14.
• 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, with agricultural wages being quickly increased to 30 shillings a week (a higher level in certain counties) under the wage committees.
• 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
Radicals (UK)
The Radicals were a parliamentary political grouping in the United Kingdom in the early to mid 19th century, who drew on earlier ideas of radicalism and helped to transform the Whigs into the Liberal Party.-Background:...
idea of the free breakfast table
Free Breakfast Table
The Free Breakfast Table was the demand of British working-class Liberalism from the 1860s to the early twentieth-century. It entailed abolishing duties on basic foodstuffs as these were indirect taxes and therefore regressive....
.”
• The inclusion of miner’s silicosis within the provisions for workmen’s compensation, 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.
• 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.” This legislation protected tenants from eviction by landlords who attempted to obtain “decontrolled” status for their properties in order to raise tents.
• The London Traffic Act 1924
London Traffic Act 1924
The London Traffic Act 1924 was an Act of the parliament of the United Kingdom. The purpose of the Act was stated to be the facilitating and improving the regulation of traffic in and near London.-Background:...
, which provided for the regulation of London traffic. The legislation regulated privately-owned public transport, setting timetables and safety standards.
• The introduction of a subsidy for sugar beet cultivation to support agriculture.
• The provision of financial support to municipal works to reduce unemployment. 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.
• The allocation of government funds for the repair and modernisation of 60,000 government built houses.
• The removal of the restrictions imposed by the previous government on spending by the Poplar Board of Guardians.
• 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.”
• An extension of child welfare and maternity services.
• The extension of entitlement to sickness allowances to war widows and orphans.
• The development and extension of schemes for roads and bridges, land reclamation and drainage, and afforestation.
• The launching of a national electrical policy and a national road policy.
• The construction of two additional treatment centres for those afflicted by venereal diseases.
• The passage of the National Health Insurance (Cost of Medical Benefit) Bill, which revised the capitation fee paid to the doctors.
• The restoration of sickness grants.
• 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.
• 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.
• Higher spending on education and health.
Foreign policy
Many historians have argued that the First Labour Governments’ most notable achievements were in foreign affairs, of which Ramsay MacDonaldRamsay MacDonald
James Ramsay MacDonald, PC, FRS was a British politician who was the first ever Labour Prime Minister, leading a minority government for two terms....
had devoted much time and effort, having taken the posts of both Prime Minister
Prime minister
A prime minister is the most senior minister of cabinet in the executive branch of government in a parliamentary system. In many systems, the prime minister selects and may dismiss other members of the cabinet, and allocates posts to members within the government. In most systems, the prime...
and Foreign Secretary. Germany
Germany
Germany , officially the Federal Republic of Germany , is a federal parliamentary republic in Europe. The country consists of 16 states while the capital and largest city is Berlin. Germany covers an area of 357,021 km2 and has a largely temperate seasonal climate...
had failed to maintain reparation payments in the years following the end of the Great War, and France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan 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
Dawes Plan
The Dawes Plan was an attempt in 1924, following World War I for the Triple Entente to collect war reparations debt from Germany...
, 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
Chequers
Chequers, or Chequers Court, is a country house near Ellesborough, to the south of Aylesbury in Buckinghamshire, England, at the foot of the Chiltern Hills...
and then hosted an Inter-Allied conference in London
London
London is the capital city of :England and the :United Kingdom, the largest metropolitan area in the United Kingdom, and the largest urban zone in the European Union by most measures. Located on the River Thames, London has been a major settlement for two millennia, its history going back to its...
in July 1924.
Through sharp negotiating skills and powers of persuasion, Macdonald was able to successfully make the Prime Minister of France
Prime Minister of France
The Prime Minister of France in the Fifth Republic is the head of government and of the Council of Ministers of France. The head of state is the President of the French Republic...
Édouard Herriot
Édouard Herriot
Édouard Marie Herriot was a French Radical politician of the Third Republic who served three times as Prime Minister and for many years as President of the Chamber of Deputies....
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.
The fall of the government
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. CampbellJohn Ross Campbell
John Ross "Johnny" Campbell , best known as "J.R. Campbell," was a British communist activist and newspaper editor. Campbell is best remembered as the principal in the so-called Campbell Case...
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
Zinoviev Letter
The "Zinoviev Letter" refers to a controversial document published by the British press in 1924, allegedly sent from the Communist International in Moscow to the Communist Party of Great Britain...
, 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
Revolution
A revolution is a fundamental change in power or organizational structures that takes place in a relatively short period of time.Aristotle described two types of political 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), 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.