Sections of the middle class while labour support in rural areas remained slight but the labour party was making significant progress.
However Labour had faced some problems during this period. The cause of Parliamentary arithmetic was the result of the 1906 general election, which made it difficult for the labour MPs to make their mark. The second problem was New Liberalism where the liberals were adopting a programme of social welfare, this presented labour in parliament with a dilemma. The finances also had an effect on Labour with the Osborne Judgement, which had struck the labour party very hard because they depended on the unions to pay their salary. Finally the lack of electoral progress meant that they had been lacking some success in 1910 because it had reduced their number of MPs. However this was all soon to be turned around.
The labour party who made impact in Parliament helped shape the legislation. The prime minister Henry Campbell Bannerman and electoral commitments of many liberal members, the government threw overboard its own more moderate and complicated Trade Union Bill and accepted the Labour Bill. This became law as the trades disputes Act of 1906. This was a major triumph for the Labour party because in the same year they supported a new workmen’s compensation Act, and school meals and medical inspection acts. With this the liberals had declined because the act, labour had made would effect them in the long run and it meant that support would go over to Labour.
The Labour party also gained trade union support, which grew rapidly during this period. In 1909 the miner’s federation of Great Britain switched allegiance from the liberal party to the Labour party, this was very significant because it brought new members and 12 MPs joined the Labour group in Parliament, This officially destroyed the link between the liberals and the miners. From 1910 –1914 there had been rapid growth of trade union support, which had benefited the Labour party. In 1910 there was 2.5 million, 1914, 4million and 1918 there was 8million. The funding for the labour party increased in respect of this Trade Union organisation
With growth in union support they had made some electoral progress. In local elections Labour made a gain in seats between 1900- 1913.
At local level, Labour often presented a programme of social reform, which was very distinctive from the Liberals. As a result labour was beginning to take over from the liberals from place to place. Because of the social reform it gave hope for the working class people. Religion was a reason for the growth of the Labour party in South Wales because they were non –Anglican, Also there was discrimination against Catholics and nonconformists who were liberals as a result they drifted to the Labour Party.
Labour had made significant advances in both membership and party organisation in the period 1906-14. The greatest source was the trade unions. The decision of the miner’s federation brought in 550,000 new members. The parliamentary labour party had become more effectively organised from 1911, improved finances after the trade union act meant that the party was able to employ more officials and put up more candidates. The labour party organisational structure, set up in every constituency, so as the labour party continued to grow the liberals were declining. This was mainly due to the fact that the liberals were not extending their appeal to the people.
In conclusion it was inevitable that the Labour Party grew and the liberal party declined. The liberal party with the organisational weaknesses, failure in local elections, its continuing links with middle-class nonconformists and its general inability to adapt itself to working class needs and aspirations continued to decline. The labour party grew rapidly with massive support from the trade unions and succeeded in organising their party. This had contributed to the growth of the Labour party success.