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OCR A-Level History Study Notes

12.4.2 1923 Election and First Labour Government 1924

OCR Specification focus:
‘the 1923 election and its significance; the first Labour government 1924, MacDonald’s aims, domestic reforms, international relations and fall from power.’

The 1923 general election and the subsequent formation of the first Labour government in 1924 marked a decisive turning point in British politics and party realignments.

The 1923 General Election

The general election of December 1923 was called unexpectedly by Prime Minister Stanley Baldwin, leader of the Conservative Party. Baldwin sought a mandate for the introduction of protective tariffs—a reversal of Britain’s long-standing commitment to free trade. This policy divided opinion and became the dominant issue of the campaign.

  • The Conservatives won the largest number of seats (258), but not an outright majority.

  • The Labour Party, under Ramsay MacDonald, won 191 seats, overtaking the Liberals as the second largest party.

  • The Liberal Party, led by Herbert Asququith and David Lloyd George, won 158 seats, maintaining significant influence despite deep internal divisions.

The outcome of the election was a hung parliament, reflecting a shifting political landscape. Importantly, Labour emerged as a credible alternative to the Conservatives, displacing the Liberals as the main opposition.

Map of the 1923 general election results showing Conservative, Labour and Liberal seats across Britain and Ireland. The three-party competition explains how a hung parliament emerged. Source

Significance of the Election

The 1923 election was significant because it:

  • Ended the era of clear two-party dominance between Conservatives and Liberals.

  • Demonstrated the growing power of the Labour Party, rooted in trade union support and working-class representation.

  • Reflected the decline of the Liberals, weakened by leadership rivalry and lack of a coherent post-war vision.

  • Highlighted the centrality of economic policy debates, particularly free trade versus protectionism, to interwar politics.

Formation of the First Labour Government, 1924

Although the Conservatives remained the largest party, Baldwin could not command a majority in the House of Commons. When his government was defeated on a King’s Speech amendment, Baldwin resigned. King George V then invited Ramsay MacDonald, as leader of the second largest party, to form a government.

This resulted in Britain’s first Labour government in January 1924. It was a minority government, dependent on the support of the Liberals to survive.

Ramsay MacDonald’s Aims

MacDonald, as both Prime Minister and Foreign Secretary, sought to demonstrate that Labour could govern responsibly and moderate fears of socialism. His priorities were:

  • Establishing Labour as a respectable party of government, not a revolutionary force.

  • Pursuing moderate social reforms without alarming the middle classes.

  • Strengthening Britain’s international role through diplomacy and peace-building.

Minority Government: A government that does not hold an absolute majority of seats in parliament and therefore depends on the support of other parties to pass legislation.

Domestic Reforms

Labour’s domestic record was modest due to its weak parliamentary position but still significant:

  • Housing Act (1924), spearheaded by John Wheatley, Labour’s Minister of Health, provided subsidies to local authorities for the construction of affordable council housing, laying foundations for future welfare policy.

  • Expansion of unemployment benefits, particularly for the most vulnerable, though constrained by budgetary limits.

  • Limited reforms to education and social policy, reflecting Labour’s commitment to improving working-class conditions.

These reforms helped Labour appeal to a broader electorate, reinforcing its image as a practical reformist party rather than a radical socialist movement.

International Relations

MacDonald’s greatest impact came in foreign policy:

  • He sought international reconciliation after the First World War.

  • Played a central role in the Dawes Plan (1924), which addressed Germany’s reparations crisis by restructuring payments and stabilising the European economy.

  • Championed the Geneva Protocol (1924), which aimed to strengthen the League of Nations and outlaw aggressive war, although Britain later withdrew under Conservative pressure.

  • Recognised the Soviet Union, establishing diplomatic and trade relations, though this move provoked controversy and suspicion among political opponents.

Prime Minister Ramsay MacDonald greeting Soviet envoy Christian Rakovsky outside 10 Downing Street in 1924. This moment symbolised Britain’s recognition of the USSR under Labour’s foreign policy. Source

Dawes Plan: An international agreement of 1924 that reduced and restructured German reparations payments following the First World War to ease economic instability.

Fall from Power

The Labour government was short-lived. Its fall was triggered by the Campbell Case (1924), where the government was accused of interfering in the prosecution of a left-wing journalist under charges of incitement to mutiny. This scandal damaged Labour’s credibility.

The crisis escalated when the government lost a vote of confidence in October 1924. This led to a general election in which Labour was heavily defeated, and the Conservatives returned to power with a substantial majority. The campaign was marred by the infamous Zinoviev Letter, a forged document alleging Labour’s ties to Soviet communism, which further undermined MacDonald’s government.

Overall Importance

The 1923 election and 1924 Labour government, though brief, were milestones:

  • They marked the emergence of Labour as a governing party, cementing the decline of the Liberals.

  • Demonstrated Labour’s ability to exercise power responsibly, which reassured the electorate in future decades.

  • Highlighted the volatility of interwar politics, where governments could rise and fall quickly due to fragile parliamentary balances.

FAQ

The Liberals, though weakened, held the balance of power after the 1923 election. They chose to support Ramsay MacDonald’s Labour minority administration rather than sustain Baldwin’s Conservatives.

This decision was influenced by:

  • A shared commitment to free trade, which aligned more closely with Labour’s stance than Conservative protectionism.

  • Liberal hopes that Labour’s time in office would expose its weaknesses and dissuade voters from shifting away from Liberalism permanently.

Press reactions were mixed and often hostile. Many conservative and middle-class newspapers depicted Labour as inexperienced and vulnerable to socialist or communist influence.

Some liberal-leaning publications supported Labour’s moderate policies, but sensationalist reporting, particularly during the Campbell Case and Zinoviev Letter affair, reinforced public suspicion and weakened Labour’s credibility.

The 1924 Housing Act provided government subsidies to local authorities for the construction of council housing.

Its importance lay in:

  • Establishing a framework for long-term state involvement in housing.

  • Creating affordable, quality homes for working-class families.

  • Demonstrating Labour’s ability to implement practical, reformist policies with lasting social impact.

MacDonald aimed to stabilise international relations after the upheaval of the First World War.

His priorities included:

  • Promoting peace through the League of Nations and the Geneva Protocol.

  • Supporting the Dawes Plan to ease tensions around German reparations.

  • Seeking to balance diplomacy with Britain’s traditional imperial and security concerns.

The Campbell Case arose when Labour’s government was accused of interfering in the prosecution of a communist journalist charged with incitement to mutiny.

The controversy suggested Labour was either weak in handling extremist threats or sympathetic to them. It gave opposition parties a chance to portray Labour as irresponsible, leading to a vote of no confidence that ultimately toppled the government.

Practice Questions

Question 1 (2 marks)
In which year did Ramsay MacDonald form Britain’s first Labour government, and why was it a minority administration?

Mark Scheme:

  • 1 mark for correctly identifying the year: 1924.

  • 1 mark for correctly stating that it was a minority government because Labour did not have a majority of seats and relied on Liberal support.

Question 2 (6 marks)
Explain two reasons why the Labour government of 1924 was significant for British politics.

Mark Scheme:

  • Up to 3 marks for each explained reason, maximum 6 marks.

  • Acceptable points include:

    • Labour proved it could govern responsibly (1 mark), showing moderation rather than radical socialism (1 mark), which reassured the electorate in later years (1 mark).

    • Introduction of reformist policies such as Wheatley’s Housing Act (1 mark), which expanded affordable housing (1 mark), marking the start of Labour’s role in social reform (1 mark).

    • Recognition of the Soviet Union (1 mark), showing Labour’s distinct approach in foreign affairs (1 mark), even though it generated controversy and suspicion (1 mark).

  • Maximum 2 well-explained reasons credited.

  • Partial credit available for relevant but underdeveloped points (1–2 marks per reason).

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