OCR Specification focus:
‘the formation, nature and impact of the National Government; MacDonald, Baldwin and Chamberlain as Prime Ministers; the Abdication Crisis’
The National Government, established in 1931, dominated British politics through much of the 1930s. Its leadership, economic policies, and responses to political crises defined the period.
The Formation of the National Government, 1931
The National Government was created in response to a severe economic crisis caused by the Great Depression. Britain faced mounting unemployment, falling exports, and a crisis of confidence in the pound.
Economic pressures: By 1931 unemployment exceeded 2.5 million. There were growing fears of a budget deficit and capital flight.
Labour divisions: Ramsay MacDonald’s Labour government split over proposed spending cuts, especially to unemployment benefits.
King George V’s role: He urged party leaders to form a coalition to stabilise the nation.
Creation of the National Government: MacDonald, expelled from the Labour Party for “betrayal”, remained as Prime Minister, supported by Conservatives and Liberals.
In August 1931, Ramsay MacDonald formed a National Government to confront the financial crisis.
Ramsay MacDonald, Labour leader who headed the first National Government in 1931 amid a sterling and budgetary crisis. His cross-party cabinet introduced emergency measures and reoriented economic policy. Source
National Government: A broad coalition government formed in 1931, originally to deal with Britain’s economic crisis, dominated by the Conservative Party.
The new government gained an overwhelming majority in the 1931 General Election, largely because of the collapse of Labour support.
The Nature of the National Government
Although presented as a coalition, the Conservative Party quickly became dominant, providing the majority of MPs and shaping policy direction.
Composition: Included a few Liberal Nationals and “National Labour” MPs, but the Conservatives provided the backbone.
Policy priorities: Restoring economic confidence, reducing public spending, maintaining social order.
Political stability: Despite its origins in crisis, the National Government proved durable, lasting until 1940.
Economic and Social Measures
The National Government introduced a series of measures to restore stability:
Public spending cuts: Reduction in unemployment benefit and public sector wages.
Leaving the Gold Standard (1931): Britain abandoned the fixed link between the pound and gold, allowing currency devaluation and greater economic flexibility.
Import Duties Act (1932): Introduced tariffs of 10% on most imports, signalling a move away from free trade.
Ottawa Agreements (1932): Established imperial preference, strengthening trade within the British Empire.
Unemployment: Regional disparities remained, with the south-east recovering faster than the industrial north and Wales.
MacDonald as Prime Minister
Ramsay MacDonald remained Prime Minister from 1931 to 1935, but his authority was weak:
Seen as a figurehead, distrusted by Labour and dominated by Conservatives.
Increasingly frail, suffering from ill health and diminished political energy.
Critics viewed him as having betrayed Labour principles in favour of Conservative economic orthodoxy.
Baldwin’s Leadership, 1935–1937
In 1935, Stanley Baldwin replaced MacDonald as Prime Minister, providing steadier leadership.
Reputation: Baldwin was respected for his calm, reassuring style and ability to manage party politics.
1935 General Election: The National Government won a majority, though Labour made a modest recovery.
Policy focus: Continued economic recovery, gradual rearmament in response to international tensions, and social stability.
Foreign policy: Baldwin’s government faced the Abyssinian Crisis (1935–36), exposing weaknesses in the League of Nations and Britain’s cautious diplomacy.
Industrial Relations
Although industrial unrest was less severe than in the 1920s, Baldwin promoted conciliation with trade unions, preferring compromise over confrontation. This helped maintain domestic peace.
Stanley Baldwin’s National Government (1935–1937) managed rearmament debates and the Abdication Crisis while maintaining parliamentary stability.
Stanley Baldwin, Conservative leader and prime minister (1935–37), who presided over the Abdication Crisis and late-interwar governance. Use alongside discussion of cabinet priorities, calm parliamentary management, and constitutional stewardship. Source
Chamberlain as Prime Minister (1937 Onwards)
Neville Chamberlain succeeded Baldwin in 1937, inheriting a strong parliamentary position.
Domestic policies: Chamberlain emphasised housing reform and social improvements.
Foreign policy: He is most associated with the policy of appeasement towards Germany, though this developed more fully after 1937.
His technocratic style emphasised efficiency and administrative detail, in contrast to Baldwin’s reassuring presence.
Appeasement: A policy of making concessions to aggressive powers, notably Nazi Germany, in order to avoid conflict.
The Abdication Crisis, 1936
The most dramatic political crisis of Baldwin’s premiership was the Abdication Crisis.
King Edward VIII wished to marry Wallis Simpson, an American divorcee.
Constitutional issues: As Head of the Church of England, the King could not marry a divorced woman with a living ex-husband.
Government opposition: Baldwin informed Edward that the government could not support the marriage and would resign if he insisted.
Resolution: Edward abdicated in December 1936, replaced by his brother, George VI.
The crisis demonstrated the strength of parliamentary government over monarchy, reinforcing democratic accountability.
The Abdication Crisis (1936) tested constitutional conventions and Baldwin’s authority in managing Edward VIII’s decision to marry Wallis Simpson.
Title page of the His Majesty’s Declaration of Abdication Act 1936, the statute that formalised Edward VIII’s abdication. It illustrates how the crisis was resolved through statute rather than prerogative. Source
Impact of the National Government
The National Government’s impact was significant:
Economic recovery: Although partial and uneven, policies such as cheap money, devaluation, and rearmament helped Britain stabilise.
Conservative dominance: Despite the coalition label, the government was effectively Conservative-led.
Political continuity: The National Government maintained political stability during turbulent years.
Social effect: While unemployment persisted in older industrial regions, new industries in the south and Midlands grew.
Constitutional precedent: The Abdication Crisis reinforced the supremacy of Parliament.
Overall, between 1931 and 1937, the National Government provided stability during economic depression and political uncertainty, but its record was mixed, with uneven prosperity and growing challenges abroad.
FAQ
The 1931 General Election gave the National Government a landslide majority, but most of the MPs returned were Conservatives.
This meant that although the government was technically a coalition, Conservative influence was overwhelming in shaping policy and ministerial appointments. MacDonald remained Prime Minister, but his reliance on Conservative support left him a figurehead with little independent authority.
Chamberlain’s approach was more technocratic and detail-focused than Baldwin’s reassuring, consensus-based style.
Chamberlain emphasised efficiency and administrative reform.
He prioritised housing and social welfare improvements.
His direct and often authoritarian manner contrasted with Baldwin’s patient management of colleagues.
This shift reflected a move towards greater central control within government, laying foundations for later appeasement policies.
Abandoning the Gold Standard allowed Britain’s currency to devalue, making exports cheaper and more competitive abroad.
It also enabled the Bank of England to lower interest rates, which reduced borrowing costs. This policy—often described as “cheap money”—helped stimulate domestic housing construction and light industry.
While older industrial regions saw limited benefits, the policy was key to economic stabilisation in the south and Midlands.
The Abdication Crisis revealed divisions in public opinion.
Many working-class and younger people sympathised with Edward VIII’s desire to marry for love.
Sections of the political establishment and press opposed the marriage, stressing constitutional principles.
The eventual abdication, however, reinforced parliamentary supremacy and respect for constitutional norms.
The crisis also enhanced the monarchy’s public image under George VI, who was portrayed as dutiful and traditional.
The Ottawa Agreements established a system of imperial preference, favouring trade within the British Empire.
Imports from empire countries received tariff advantages.
This encouraged closer economic ties between Britain and its dominions.
It protected some British industries from foreign competition, but also reduced reliance on global free trade.
The agreements benefited certain sectors like agriculture, yet they could not fully address Britain’s structural unemployment or regional disparities.
Practice Questions
Question 1 (2 marks)
In which year did Stanley Baldwin become Prime Minister for the third time, leading the National Government?
Mark Scheme
1 mark for correctly identifying 1935.
No credit for incorrect years or vague references.
Maximum 2 marks:
1 mark for correct year.
+1 mark for linking it explicitly to his leadership of the National Government.
Question 2 (6 marks)
Explain two problems faced by the National Government during Baldwin’s premiership, 1935–1937.
Mark Scheme
Up to 3 marks for each well-explained problem (maximum 6).
Award marks as follows:
Problem 1
1 mark: Identifies a valid problem (e.g., the Abdication Crisis).
2 marks: Explains briefly how the problem challenged the government (e.g., the King’s wish to marry Wallis Simpson conflicted with constitutional conventions).
3 marks: Develops explanation with accurate detail (e.g., Baldwin’s insistence the government would resign forced Edward VIII’s abdication, demonstrating the strength of parliamentary authority).
Problem 2
1 mark: Identifies a second valid problem (e.g., issues over rearmament and responses to international tensions such as the Abyssinian Crisis).
2 marks: Explains briefly why this was a difficulty (e.g., Britain’s limited resources and divisions over foreign policy undermined confidence in the League of Nations).
3 marks: Develops explanation with accurate detail (e.g., slow rearmament reflected balancing public opinion against military necessity, creating strain on Baldwin’s government).
To achieve 6 marks, candidates must clearly explain both problems with accurate, relevant detail.
Partial answers with only identification or underdeveloped explanation receive proportionally fewer marks.
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