1931-35 National Government

• National Government by McDonald

  1931-35
• Election


  1931
• The National Government was not expected to last long; it would either fail and fall or succeed and become redundant
• The impending threat of European dictatorships led to the continuation of the National Government into the 1931 election
• Cabinet composition after the 1931 election

  • 11 Tories
  • 9 others
• Election results 1931


  • Conservative 473
  • Liberal and Labour Nationals 48
  • Labour 52
  • Liberals 33
• Economic Policy of the National Government

  10% cut in expenditure including public sector wages and unemployment benefits, devaluation of the pound made exports cheaper and helped boost trade, low-interest rates (2% until 1939) to encourage private enterprise, protectionist ideology embraced
• 1935 Special Areas Act


  Made £2 million available in aid for depressed areas especially the industrial north, encouraged 44000 to move towns and retrained 30000
• Despite rejecting Keynesian economic policies, the government continued, 2.7 million homes were built and industrial production was 11% higher than in 1929
• Unemployment Act 1934


  Neville Chamberlain reformed the unemployment benefits system by introducing 'means testing' which was widely hated
• Problems arising involving India

  Nationalists began to demand independence
• 1935 Government of India Act


  Allowed the government of provinces but not central control of the government
• Problems within Europe


  Another world war brewing, Japan's invasion of Manchuria (31) and the collapse of Germany's democracy in 1933
• A 'stresa front' was formed to deter rearmament but was unsuccessful as the nations disputed