History Unit 1.6

• Age of Austerity 1945 proved to be a key moment in Great Britain’s history
• World War Two had an immediate impact in terms of economic and political changes
• One of the key challenges facing the UK in 1945 was the economic position of the country
• The national debt had risen from £760 million to £3500 million
• Britain had spent close to £7 billion, or a quarter of the national wealth, on the war effort
• The UK was spending £2000 million a year abroad, while earning only £350 million in return
• Loans from the USA were vital if the UK economy was to recover
• One in three houses had been destroyed by bombing whilst factories and shops had also been destroyed in large numbers
• Britain suffered 264,433 military and 60,595 civilian deaths during the war
• Many others were physically and mentally scarred by the war and unable to resume normal life
• 177 merchant ships and two-thirds of the Navy had been sunk, so food supplies were still a problem
• Rationing remained in place for another 10 years
• Income tax remained high to help the Government pay for the reconstruction
• This period saw the end of the British Empire
• Its standing in the world had declined as it became impossible to contend with the economic might of the USA
• Wartime rationing had to be continued due to shortages of food and raw materials
• Age of Austerity


  A period of difficult economic conditions as the government reduces spending
• Virtually every adult was employed (full employment)
• There was optimism of a better future due to the victory
• There was a sense of change – as shown in the Labour election victory
• Many accepted the end of the Empire
• Demobilisation 1945 proved to be a key moment in Great Britain’s history
• Optimism was felt in Wales too at the end of the war
• World War Two had an immediate impact

  In terms of economic and political changes
• Many evacuees, Bevin Boys, allied troops, and women in the land armies had experienced life in Wales for the first time during the war
• In 1945, there were approximately 5 million men and women in the armed forces
• This exposure led to a recognition that Wales had a distinct identity from the rest of Britain
• Civvy street


  Civilian life
• It was clear to many that the UK was no longer a great military or economic power
• Ernest Bevin was the chief architect of the demobilisation plan
• Demobilisation process


  1. Plan began six weeks after war ended

  2. Military personnel released based on length of service and age

  3. Soldiers from key roles released ahead of their turn
• It was also evident that the country was entering a post-war decline
• Many former soldiers were angered by the slow pace of release
• This anger led to a number of disciplinary incidents
• Former soldiers encountered a variety of problems on their return to civilian life
• Numerous homes and places of work had been destroyed
• Many people faced problems finding work or settling back into normal family life
• The post-war divorce rate was high with over 60,000 applications processed in 1947
• War damage 1945 proved to be a key moment in Great Britain’s history
• World War Two had an immediate impact

  Economic and political changes