Geddes Axe facts for kids

The Geddes Axe was a plan in the 1920s to save money for the British government. It was named after Sir Eric Geddes, who led a special committee. This committee looked for ways to cut down on how much the government was spending. Other important members included Lord Inchcape, Lord Faringdon, Sir Joseph Maclay, and Sir Guy Granet.

Why the Government Needed to Save Money

Spending After World War I

After World War I, the British government was spending a lot more money. People were also paying more in taxes. For example, in 1919, each person paid about £18 in taxes. By 1921, this had gone up to £24.

Government departments, like those that ran public services, cost much more. Before the war, in 1913–14, these services cost about £81 million. By 1921–22, they cost nearly £591 million. The military also cost a lot more. Before the war, they cost about £77 million. In 1921–22, they cost nearly £190 million. The country's National Debt (money owed by the government) also grew a lot.

The Anti-Waste League

In 1921, a group called the Anti-Waste League was formed. It was started by Lord Rothermere. This group believed the government was wasting money. They even won some special elections against the government.

Because of these concerns, the government decided to act. In May 1921, the Treasury (the government's money department) told all departments to cut spending. They wanted to reduce costs by £113 million. But the departments only planned to cut £75 million.

Forming the Geddes Committee

So, in August 1921, Prime Minister David Lloyd George asked Sir Eric Geddes to lead a committee. This committee's job was to find where the government could save money for the next year.

The committee's main goal was to find ways to reduce national spending. They looked at all government services. If a government policy was causing high costs, the committee could suggest changes.

Later, the Chancellor of the Exchequer, Sir Robert Horne, asked the committee to find even bigger cuts. He wanted them to find £175 million in savings. The committee gave its reports to the government in late 1921 and early 1922. These reports were then reviewed and changed before being made public.

The Cuts of the Geddes Axe

The Geddes Committee suggested saving a total of £87 million. After reviewing the reports, the government decided to make cuts that saved £52 million.

• Spending on defence (military) went down. It fell from about £189.5 million in 1921–22 to £111 million in 1922–23.
• Spending on social services (like education, health, housing, pensions, and unemployment support) also decreased. It went from £205.8 million in 1920–21 to £182.1 million in 1922–23.

After 1922–23, defence spending slowly increased again. Social spending also went up after a small dip in 1923–24.

"The Axe" as a Metaphor

The phrase "Geddes Axe" became very famous. It might have been the first time the word "axe" was used to mean financial cuts. The Oxford English Dictionary shows that the earliest uses of "axe" in this way were all about the Geddes Axe.

For a while, "Geddes Axe" became a way to describe any change that made things more efficient or simpler. For example, Rupert Gould wrote in his book The Marine Chronometer (1923):

The need for its maker, if he wishes to remain in business, to produce an efficient machine which shall at the same time be cheap, and therefore must be as simple as possible, has acted as a kind of "Geddes' Axe," sweeping away a number of unnecessary devices...

This shows how the idea of the "Geddes Axe" was used to mean cutting out things that were not needed.