There was much dissatisfaction amongst the population due to the terrible working and living conditions caused by the industrial revolution. The middle and working classes wanted more reform and so turned to their trade unions. However, there was a declining influence of trade unionism in the 1890s due to their legal restraints that were made evident after the Lyons v Wilkins case in 1896. As a result there was a growth in socialist groups.
In 1884 two socialist societies, the Social Democratic Federation (SDF) and the Fabian Society, were founded. Their members were largely middle class. Keir Hardie later formed the Independent Labour Party (ILP) in 1893, with the aim of securing the election of MPs who would represent the interests of the working classes. He aimed for a group of working-class MPs who were not tied to the Liberals and would press for social reform. The 1867 and 1884 Reform Acts enfranchised many working-class voters and a few working-class men had been elected as ‘Liberal/Labour’ MPs. The lack of social reform from both Gladstone’s second ministry and Salisbury’s ministries disappointed many working-class electors. These groups grew in popularity due to the common frustration with the Conservatives. There was much anger at this government, which was lead by Lord Salisbury, as it still remained an aristocratic leadership.
The LRC was formed in 1900 as a result of trade union action prompted by a number of other factors. One of these factors is the Liberal decline. The Liberal Party split in two after the introduction of the First Home Rule Bill. A traditional Liberal support of workers’ interests had waned to the extent that the belief that it would choose working-class parliamentary candidates had virtually disappeared.
Another factor was the employers’ hostility. In the 1890s, trade unions faced a major attack from employers who were supported by court judgements that underlined the lack of working-class political influence. Moreover, this lead to a demand from the working classes for representation.
A further factor was the Trades Union Congress of 1899. At the Trade Union Congress, the Amalgamated Society of Railway Servants called for a conference to meet to discuss labour representation in Parliament. The conference met in 1900 and was attended by Fabians, SDF members, the Independent Labour Party and some trade unions. They decided to set up the LRC to fight for trade union and workers’ rights in Parliament, and in the 1900 general election the LRC returned two MPs to Parliament.
The decline of the Liberals, Trade Unions and anger at the Conservatives all lead to a demand for change. There had been no organised socialist movement before the 1880s since Chartism in the 1850s. The growth in demand for change was accompanied by the growth of class-consciousness. This was highlighted in the late 1870s and early 1880s due to the intense depression.
The Labour Party was formed partly because of a pragmatic response to a combination of diverse social, economic and political factors, but it was also an inevitable consequence of a developing working-class consciousness.
Class-consciousness had developed as a result of industrialisation in Britain. Working men had become more aware of their position and power and also their lack of representation. Their awareness eventually led to the establishment of a political party to protect and promote working-class interests.
There were many reasons that the development of class-consciousness occurred. One reason was the developments in education. After 1870, elementary schools were provided nationwide. Levels of literacy increased amongst the working classes, giving them the ability to use political pamphlets.
The technological advances formed as a result of the industrial revolution helped to split the middle and working classes. The managers and owners formed the middle-class, whilst the labourers formed the working-class.
Another reason was political change. Many working-class men had the vote after 1884. This meant that a working-class Party would have a lot of support. The working-class electors wanted to vote for a Party that would represent them and their needs, and so this left the way for a party to emerge.
The Labour Party was formed at the beginning of the 20th century because it had the support and the demand. The demand had formed from the industrial revolution and the support came from middle-class radicals as well as the working classes. The Labouring classes had formed the majority of the electorate following the social reforms of the nineteenth century. The majority of the working classes were unhappy with the present economic and social situation, they wanted to use their votes to solve fight for their cause and with the newly formed Labour Party they could do exactly that.