Did the Attlee government 0f 1945-1951 have a coherent programme for changing Britain?
Did the Attlee government 0f 1945-1951 have a coherent programme for changing Britain?
In answering this question I must look at the history of the Attlee government first before I Can comment on how coherent the programme for change in Britain was.
The Labour government’s period in office between 1945 and 1951 after a landslide victory over Churchill the commander of the allied forces after victory in the second world war the can be explained by the huge number of votes for the labour government by members of the forces wanting to can the country they left, labours office can be divided into two distinct periods. The first period saw the government attempting the extension of wartime economic planning, the implementation of their nationalisation programme, and a level of social planning concurrent with the organisation of the welfare state. The construction of the post-war 'consensus' rested on the Governments ability to deliver its aims of full employment, coupled to the provision of a comprehensive welfare state.
This was to be achieved through government being permitted to 'manage' the economy, and the implementation of its nationalisation programme, both with the cooperation of the Trade Unions Movement.
The Attlee years 1945-1951.
The economy was facing much strain after the war; the government was facing a “financial Dunkirk”. Although labour paved on with an extensive reform programme, just as they had promised in their campaign. The economic policy of the government was in favour of working class families. Rationing was still present in favour of keeping living cost down; development at regional level was pushed to avoid any returns of mass unemployment much of the surplus from the armed forces joined in on the development at regional level keeping the unemployment figures low as 9 million bodies were tied up in the armed forces after the war these people needed to be absorbed into the work force without having a period of wide spread unemployment. Progressive rates of tax were kept in place to keep the cost for the public low. Britain had to get used to not producing munitions and supplies for the army and start producing according to the publics demand, and as consumers had money saved from the war as they could not spend it they are ready and waiting to buy showing a possibility of “ a danger that the pressure of demand would become excessive and find vent in inflation” (A.Cairncross), and there were fears that full employment would lead to unions opening the doors on wage inflations, Attlee was able to convince the union to slow down union activity in the early post war years so the economy could get back on its feet. Not helping this matter was the fact that Britain had managed to incur the largest external debt in history, balance of payments after the war amounted to £10,000 million, a lend lease from America met half of this amount the rest had to be found my selling foreign investment and by borrowing sterling of dollars. However the debt after the war continued to escalate Attlee told the House of Commons “British earning form exports were currently no more than £350 million a year to which other receipts of foreign exchange might add a further £450 million. Total outgoings, on the other hand, including military expenditure abroad and the food and other supplies previously paid for by the United States, were running at the rate of £2000 million a year. This left a gap of £1200 million a year to be met by fresh borrowing abroad” (A. Cairncross The British economy since 1945). Forecast suggest that balance of payments would continue for a least three years and the figure of £1250 million extra was expected before balance would be restored. This meant that imports had to be kept below that of pre war days and exports had to be raised to that of pre war days as well, in order for the country to start making money again and get out of debt. However Britain needed to raise exports a considerable amount because exports in pre war days only covered 55% of the cost of imports, the rest was made up my net shipping earnings and foreign investment and with the lost of half of Britains merchant marine core during the war Britains exporting power had decreased severely. After the war much of the world economies were in deficient as other countries had to borrow from aboard namely America to sustain their imports and as these supplies cost dollars a shortage in dollars followed. Because of this Britains gold and dollars reserves depleted, even though there was enough sterling around the world to pay for Britains exports if payment were made in sterling this also hindered to pay back America The worldwide dollar shortage affected Britain due to dollars being favoured over sterling in international dealings and hindered the repayment of America. After the war it was clear that Britain needed assistance in terms of finance and as the United States was in a position to help and a loan or grant was needed. After negotiations a loan was secured with conditions attached to it Under the Brentton Woods Agreement Britain would be free to defer making the pound convertible until the end of the period of transition, however this was brought forward to mid 1947. The loan lifted some pressure