The National Government

• November 29 1931 - US banks called in their oversea loans, massively reducing available borrowing and support for businesses. Lack of government funding ---> crash and MacDonald makes a deal with the King.
• MacDonald to lead government
• MacDonald deemed traitor to Labour ideology
• MacDonald had problems with European conflict: couldn't negotiate the increasing tensions with Germany and the newly appointed chancellor, Hitler.
• MacDonald's ill health meant that Baldwin managed the Disarmament Conference, of which Germany withdrew
• Britain started to rearm from 1934 onwards, but at a manageable pace
• RAF - 40 squadrons
• National Government formed in 1931 by MacDonald, dissolved in 1945
• Baldwin took over as PM and national government leader in 1935
• Baldwin pledged new houses, jobs and government in most deprived areas
• During Baldwin's government, there was division within the national government over the likelihood of war. Left of party believed rearmament made war more likely, right of party believed that rearmament made war impossible
• 1936 - Hitler broke Treaty of Versailles. Economically sanction Germany? Or back down?
• Ultimately, despite the breaking of the Treaty, Britain did nothing in fear of another general strike. Rearmament resumed as normal
• Chamberlain took over in 1937 (to 1940)
• In 1937, unemployment was falling and there was somewhat economic recovery. Antiwar protests were becoming more serious
• Chamberlain travelled to Germany several times for negotiation. This was known as appeasement. When Hitler invaded Poland in 1939, Chamberlain declared war.
• After a failed military expedition in Norway, Chamberlain resigned
• Chamberlain had previously written that Hitler could not be trusted. He argued with Baldwin that rearmament was necessary to protect Britain from Germany
• Chamberlain underestimated the amount of military spending required; in 1937, the figure increased to £1.5 billion
• THE ABDICATION CRISIS: After George V's death, his eldest son Edward VIII inherited the crown. Edward's many affairs with married women were censored by newspapers (because of conservative views on sexuality). Edward wanted to marry divorcee Wallis Simpson (societal expectations meant she was portrayed by the media as a deceptive seducer), and so had 3 options: marry and risk a constitutional crisis; abandon marriage plans or abdicate and give way to George VI. He chose the latter.