Key Welfare State Reforms 1946 National Insurance Act Industrial Injuries Act New Towns Act Trades Disputes Act 1948 National Assistance Act 1948 NHS

Factors affecting Lab Govt. Internal Factors Careful party management was necessary to maintain party unity Trade Unions remained supportive Leaders of Big 3 unions GMB, TGWU,NUM all on right of party and hostile to left and communists Most ministers were largely conservative figures – keen to regain GB’s status as a world power Economic Circumstances WW2 bankrupted GB Lend Lease ended abruptly Keynes descried it as “economic Dunkirk” 1947 Balance of Payments crisis led to tough import controls Sep % devaluation of £ against $ Worsened by spending on NHS Accusations of mis- management and loss of confidence in Govt

Domestic Circumstances World shortage of food led to “fair shares” wartime rationing being continued. Cripps believed austerity was necessary “first exports, then capital investment in industry and last are the needs, comforts and amenities of the family” By late 1940’s GB population tired of rationing and shortages Bread rationing introduced Harold Wilson announced a bonfire of controls rationing gradually relaxed Bread rationing relaxed 1948 Clothes March 1949 Sweets April 1949

Achievements of Attlee’s Govt Massive rebuilding programme needed after WW houses destroyed or damaged By end 1948 nearly 125,000 pre-fabs built 55,400 new council homes , By Million new homes built 4/5 by State Bevan increased housing space from 750 to 900 sq ft per family Successfully de-mobilised armed forces into economy (Unlike after WW1) NHS free heath care Establishment of Welfare State. Key principal of assistance for people of working age was its universality 1946 first rise in Old Age Pension since 1920

Failures Labour failed to bring about “revolution” Nationalisation did not change management and failed to bring workforce to board Attempts to plan economy less than successful Very conservative foreign policy Old fashioned Imperial ideas Indian independence due largely to mounting costs rather than desire for change Desire to remain great power distorted economic recovery - led to financial crisis 1947 Building Atomic Bomb rearmament derailed UK economic recovery (Incoming Conservative Govt of 1951 had to scale down spending plans)

Nationalisation Nationalisation – The taking over and subsequent control of an industry by the state” Clause 4 of Labour Constitution stated “there should be common ownership of the means of production, distribution and exchange”

Nationalisation 1946 Bank of England Give govt. greater access to funds for investment 1946 Air Travel 1947 Coal Mining Formation of National Coal Board 1947 Cable & Wireless Govt. now controlled all international radio and telegraph services 1948 Public Transport British Transport Commission 1948 Generation & Supply of electricity 14 boards – one efficient national system 1949 Gas Board 1950 Iron & Steel – Most controversial as these industries were profitable unlike other areas. Bitterly opposed in both Houses by opposition and repealed in 1953

Nationalisation Nationalisation was not carried out according to socialist ideology. Herbert Morrison established public corporations similar to BBC set up by Tories System was bureaucratic and inflexible. There were no workers on the boards – workers felt excluded Previous owners felt to be excessively compensated Only 20% of GB Industry was nationalised, and other than iron and steel were largely unprofitable. Investment was not going to be possible through using profits Led to belief that nationalisation = inefficiency & waste Govt shied away from taking nationalisation further than iron and steel