Philip Snowden: The First Labour Chancellor of the Exchequer

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The 1970s saw tensions re-emerge between Labour's left and right wings, [13] which eventually caused a catastrophic split in the party in the 1980s and the formation of the Social Democratic Party. Following the perceived disappointments of the 1960s Labour government and the failures of the 'revisionist' right, the left of the party under Tony Benn and Michael Foot became increasingly influential during the early 1970s. [108] For much of the remaining Parliament the government followed stricter controls in public spending and the necessary austerity measures caused consternation amongst the Party membership and the trade unions. Labour revisionism turned out to be a powerful ideological tendency within the Party in the 1950s and 1960s, taking intellectual sustenance from Anthony Crosland's book, The Future of Socialism (1956) and political leadership from Hugh Gaitskell. Its important intellectuals included Douglas Jay, Roy Jenkins, and the writers who contributed to Socialist Commentary. The goal was to reformulate old socialist principles, and bring the Labour Party policies up to date with the changing British society and economy. Revisionism rejected the old view that socialism ought to be primarily identified with the ownership of the means of production. That meant that continuous nationalisation was not a central goal. Second, was a series of political values focused on personal liberty, social welfare, and equality. Themes of destroying or overthrowing the rich and elite were downplayed in favor of government policies of taxation, widespread educational opportunity, and expanded social services. Revisionists insisted on me the necessity of a market-oriented mixed economy with a central role for capitalism and entrepreneurship. [82] [83] The Labour councils in old metropolitan counties of West Midlands, South Yorkshire, Greater London, and Greater Manchester led the way in developing interventionist economic policies. In these metropolitan county areas, Inward Investment Agencies, Enterprise Boards, Low Pay Units, and Co-operative Development Agencies proliferated, while parts of the country such as Salford Quays and Cardiff Bay were redeveloped. The Labour Birmingham City Council in the 1980s worked to diversify the business visitor economy, as characterised by the decision to build a new, purpose-built convention centre in a decaying, inner-city district around Broad Street. By the mid-1990s, the success of this strategy was evident by the success of the International convention centre leading to wider redevelopment, as characterised by the building of a Sea Life Centre, the National Indoor Arena, bars, hotels, and thousands of newly constructed and refurbished flats and houses. This helped to revitalise the city centre and brought in people and money to both and the city and the West Midlands region as a whole. [5]

The Second World War also saw significant improvements in the position of trade unions, which were encouraged by Bevin. Trade unions were integrated into joint consultation at all levels of government and industry, with the TUC drawn in to represent labour on the National Joint Advisory Council (1939) and the joint Consultative Committee (1940). A similar status was bestowed upon employers' organisations, which led Middlemass to argue that capital and organised labour had become "governing institutions" within a tripartite industrial relations system "with the state at the fulcrum." The elevation of the status of organised labour to one of parity with capital in Whitehall was effectively summed up by Bevin's biographer as such: In the election the previous month, Labour secured its best result up until that point, pushing the Liberals into third. The Conservatives failed to get an overall majority and Labour, tacitly supported by the Liberals, formed a minority government. The aggressive trade union leader Ernest Bevin, as Minister of Labour and National Service, directed Britain's allocation of manpower, Herbert Morrison became Home Secretary, Hugh Dalton was Minister of Economic Warfare and later President of the Board of Trade, while A. V. Alexander resumed the role he had held in the previous Labour Government as First Lord of the Admiralty. Labour also filled eight junior posts, a number which rose to seventeen by 1945. [9] According to G. D. H. Cole, the basis of the Wartime Coalition was that the labour ministers would look after the Home Front (including the maintenance of important social services and the mobilisation of manpower). Although the Exchequer remained in the hands of the Conservatives, a firm understanding was made with Labour regarding the equitable distribution of tax burdens. [18] In the field of workmen's compensation, Labour succeeded in getting what Labour saw as an unsatisfactory bill withdrawn, and a new Bill introduced "to include single persons and to give improved allowances." The new Workmen's Compensation (Supplementary Allowances) Act, which came into effect in August 1940), provided a supplementary allowance not exceeding 5s a week to all disabled workers, together with a supplementary allowance of 4s a week each for the first and second child, and 3s for each other child younger than 15. For a man with 3 children, the improvement represented 16s a week. For agricultural workers, a bill increasing the maximum unemployment benefit for agricultural workers by 3s a week was amended by Ernest Bevin, with a more generous increase of 6s a week introduced. [70]

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As noted by one historian, in summing up the reform record of Wilson's government, "In spite of the economic problems encountered by the First Wilson Government and in spite of (and to some degree in response to) the criticisms of its own supporters, Labour presided over a notable expansion of state welfare during its time in office." [107] "In Place of Strife" [ edit ] The Catering Wages Act (1943), another initiative by Bevin, established a Catering Wages Commission to oversee wages and working conditions in restaurants and hotels. Inspectors were also appointed to ensure that employers complied with Bevin's insistence on the provision of canteens, welfare officers, and personnel officers in factories. [73] Bevin also did much to improve conditions for those with disabilities, of which little had been done for before the outbreak of the war. In 1941, Bevin introduced an interim retraining scheme, which was followed by the interdepartmental Tomlinson Committee of the Rehabilitation and Resettlement of the Disabled. According to the historian Pat Thane, the Committee served as "a mouthpiece for Bevin's own aspirations," and its proposals for improving the lives of the disabled culminated in the Disabled Persons (Employment) Act 1944. [77] One junior minister, Oswald Mosley, put forward a memorandum in January 1930, calling for the public control of imports and banking as well as an increase in pensions to boost spending power. When this was repeatedly turned down, Mosley resigned from the government in February 1931 and went on to form the New Party, and later the British Union of Fascists after he converted to Fascism. [38]

In a manifesto on "The Peace", adopted by the 1941 Labour Party Annual Conference, it was claimed that Labour's participation in the Wartime coalition Government had been effective in that, a year after Labour had joined the government, the war was now being fought not only with much greater efficiency, but with a higher regard for social equity as well: Labour has been in opposition in the House of Commons since the 2010 general election. However Welsh Labour has led a Labour minority administration continuously since the creation of the Senedd (Welsh Parliament ) in 1999.Wilson's government in 1969 proposed a series of reforms to the legal basis for industrial relations (labour law) in the UK, which were outlined in a White Paper entitled " In Place of Strife", which proposed to give trade unions statutory rights, but also to limit their power. The White Paper was championed by Wilson and Barbara Castle. The proposals however faced stiff opposition from the Trades Union Congress, and some key cabinet ministers such as James Callaghan. The growth in Labour's local activist base and organisation was reflected in the elections following the war, the co-operative movement now providing its own resources to the Co-operative Party after the armistice. The Co-operative Party later reached an electoral agreement with the Labour Party. The Communist Party of Great Britain was refused affiliation between 1921 and 1923. [28] Progress continued in local government. In 1919 John Adams (later Baron Adams of Ennerdale) led a successful election challenge to the sitting members of Arlecdon and Frizington District Council in Cumberland. This established the first all-Labour local council to be elected in England. More money was allocated towards public health and welfare services by Morrison's administration. Somerville Hastings had a great influence over health policy in London and was for many years Chairman of the Public Health Committee, which was dominated by members of the Socialist Medical Association. [44] Hospitals were modernised and re-equipped, and more staff were employed, with improved conditions and pay. Patients also benefited from the installation of wirelesses, improved diets, and the ending of patient contributions for the residential treatment of tuberculosis. Mental patients were allowed a fortnight long holiday by the sea, and visitors to hospital inmates could have their fares paid. Services for the blind were also improved, and midwifery services were extended. [60] In addition, LCC ambulances were made free for maternity cases. [61]

The 1960s Labour government had a different emphasis from its 1940s predecessor. Harold Wilson put faith in economic planning as a way to solve Britain's economic problems. Wilson famously referred to the "white heat of technology", referring to the modernisation of British industry. This was to be achieved through the swift adoption of new technology, aided by government-funded infrastructure improvements and the creation of large high-tech public sector corporations guided by a Ministry of Technology. Economic planning through the new Department of Economic Affairs was to improve the trade balance, [13] whilst Labour carefully targeted taxation aimed at "luxury" goods and services. In the 2010 general election on 6 May that year, Labour with 29.0% of the vote won the second largest number of seats (258). The Conservatives with 36.5% of the vote won the largest number of seats (307), but no party had an overall majority, meaning that Labour could still remain in power if they managed to form a coalition with at least one smaller party. [169] However, the Labour Party would have had to form a coalition with more than one other smaller party to gain an overall majority; anything less would result in a minority government. [170] On 10 May 2010, after talks to form a coalition with the Liberal Democrats broke down, Gordon Brown announced his intention to stand down as Leader before the Labour Party Conference but a day later resigned as both Prime Minister and party leader. [171] 2010–present: Return to opposition and internal conflict [ edit ] Mark Drakeford is the current First Minister of Wales, since 13 December 2018 Labour authorities also sought to humanise the services provided by local authorities, to reduce the harshness of the way in which welfare services operated and to enable working-class people to enjoy the benefits of open space and culture. In Norwich, Labour ensured that school architecture was made bright and modern, while the Labour administration in Glasgow put an end to a controversial system in which elderly couples claiming poor relief could be split up into separate hostel units. In many Labour authorities such as Norwich and West Ham, assistance was given to poor mothers as well as the disabled.In Wilson's defence, his supporters also emphasise the easing of means testing for non-contributory welfare benefits, the linking of pensions to earnings, and the provision of industrial-injury benefits. Wilson's government also made significant reforms to education, most notably the expansion of comprehensive education and the creation of the Open University. The aftermath of the 1979 election defeat saw a period of bitter internal rivalry in the Labour Party which had become increasingly divided between the ever more dominant left wingers under Michael Foot and Tony Benn (whose supporters dominated the party organisation at the grassroots level), and the right under Denis Healey. [ citation needed] It was widely considered that Healey would win the 1980 leadership election, but he was narrowly defeated by Foot, who succeeded Callaghan as party leader late in 1980. At the end of 1940, Arthur Greenwood was given the task of planning, in Churchill's words, "a number of practical steps which it is indispensable to take if our society is to move forward." In June 1941, in response to arguments by the Trades Union Congress that there existed inadequacies with the country's system of social insurance, Greenwood set up an Interdepartmental Committee on Social Insurance and Allied Services to look into the state of Britain's social welfare programmes, and see where improvements may be made. Greenwood appointed a Liberal, William Beveridge, chairman of the committee. [53]