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Second MacDonald ministry
Royal coat of arms of the United Kingdom (HM Government, 1901-1952).svg
1929–1931
Ramsay MacDonald ggbain.37952.jpg
Date formed 5 June 1929 (1929-06-05)
Date dissolved 24 August 1931 (1931-08-24)
People and organisations
Monarch George V
Prime Minister Ramsay MacDonald
Prime Minister's history 1929–1935
Total no. of members 86 appointments
Member party Labour Party
Status in legislature
Minority
dependent on Liberal support
287 / 615 (47%)
Opposition party Conservative Party
Opposition leaders
History
Election(s) 1929 general election
Legislature term(s) 35th UK Parliament
Predecessor Second Baldwin ministry
Successor First National Government

The second MacDonald ministry was a government led by Ramsay MacDonald. He became Prime Minister of the United Kingdom for the second time on 5 June 1929. This was only the second time the Labour Party had formed a government in the UK. The first time was in 1924.

What Challenges Did the Government Face?

This government did not have a majority of seats in Parliament. The Labour Party had 288 seats, while the Conservatives had 255. Most of the other seats belonged to 58 Liberal Members of Parliament (MPs). This meant MacDonald's government needed the support of the Liberal MPs to pass any new laws.

Soon after taking office, the government faced huge problems. The world was entering the Great Depression, a time of severe economic hardship. This meant many people lost their jobs. International banks wanted the government to spend less money. But trade unions and unemployed workers protested, demanding more help.

What New Laws Did They Try to Pass?

The government tried to pass laws to help people and the economy.

Helping Coal Miners

One important law was the Coal Mines Act 1930. This law aimed to help coal miners by setting a 7½-hour workday. It also tried to make sure coal prices stayed fair to protect miners' wages. The government wanted to stop unfair competition among mine owners. However, it was hard to make sure all mine owners followed these new rules.

Improving Homes and Farms

The government also worked on housing and farming.

  • The Housing Act 1930 aimed to get rid of slums (very poor quality housing). By 1939, about 245,000 slums were torn down, and 700,000 new homes were built. This Act also let local councils set rents based on what people could afford.
  • The Agricultural Marketing Act 1931 created a board to set prices for farm products.
  • The Agricultural Land (Utilisation) Act 1931 aimed to improve farming and provide small plots of land to unemployed people.

Support for Unemployed People

A big focus was helping people who were out of work.

  • The government increased money for the Unemployment Insurance Fund. This helped ensure unemployed people received payments for longer.
  • The Unemployment Insurance Act 1930 increased benefits for some unemployed people. It also made it harder for claims to be denied unfairly. About 170,000 more people received benefits because of these changes.
  • Training programs for unemployed workers were expanded. Young people supporting their families could get extra money while training.
  • The government also made it easier for unemployed boys and girls aged 14 to 18 to get education.

Other Important Changes

  • Pensions: The Widows' and Old Age Pensions Act was updated to include hundreds of thousands more pensioners, including widows aged 55 to 70.
  • Road Safety: The Road Traffic Act introduced compulsory insurance for drivers. It also improved road safety and set limits on how long drivers could work.
  • Health: The Mental Treatment Act 1930 was passed. The National Health Insurance (Prolongation of Insurance) Act of 1930 extended health insurance to unemployed men whose benefits had run out.
  • Workplace Safety: New rules were introduced to make workplaces safer and healthier, especially in industries like chromium plating, shipbuilding, and tanneries.
  • Local Government: The Local Government Act 1929 changed how help was given to poor people. It replaced the old "Poor Law" system with new public bodies.
  • Parks and Public Spaces: George Lansbury, a minister, worked to improve London parks, adding things like boating ponds and play areas for children.

Education and Children's Welfare

The government also made efforts in education and children's health.

  • They improved school buildings and reduced the number of "black-listed" (poor quality) schools.
  • More teachers were hired, and the number of very large classes (with over 50 children) was reduced.
  • Money spent on building elementary schools more than doubled between 1928-29 and 1930-31.
  • Nursery schools for young children were expanded, doubling the available places by 1931.
  • More staff were added to school medical services.
  • New places were created in special schools for children with disabilities.
  • More meals were provided to schoolchildren, and a program to give milk to children helped 600,000 kids daily.
  • Technical education and adult education were also expanded.

Why Did the Government End?

In the summer of 1931, the government faced a big financial crisis. People worried about the value of the British pound and whether the government had enough money. A report suggested a huge budget shortfall was coming. It recommended cutting government spending and raising taxes.

MacDonald's cabinet (his main group of ministers) met many times to decide on cuts and tax increases. They also tried to get loans from other countries. It became clear that banks in New York would only lend money if the government made big cuts, including a 10% reduction in unemployment benefits (the "dole").

The cabinet struggled to agree on these cuts. Nine ministers were against reducing benefits for unemployed people, while eleven supported it. Because they couldn't agree, the government officially resigned on 24 August 1931.

Ramsay MacDonald then formed a new government called the First National Ministry. This new government included members from the Labour, Conservative, and Liberal parties. Many Labour supporters felt MacDonald had betrayed them, and he was expelled from the Labour Party.

Who Was in the Cabinet?

June 1929 – August 1931

  • Ramsay MacDonald – Prime Minister
  • Lord Sankey – Lord Chancellor (chief judge)
  • Lord Parmoor – Lord President of the Council
  • J. H. Thomas – Lord Privy Seal (a senior government minister)
  • Philip Snowden – Chancellor of the Exchequer (in charge of money)
  • J. R. Clynes – Home Secretary (in charge of internal affairs)
  • Arthur Henderson – Foreign Secretary (in charge of international relations)
  • Lord Passfield – Secretary of State for the Colonies and Dominions (in charge of British colonies and self-governing countries)
  • Thomas Shaw – Secretary of State for War (in charge of the army)
  • William Wedgwood Benn – Secretary of State for India
  • Lord Thomson – Secretary of State for Air (in charge of the air force)
  • William Adamson – Secretary of State for Scotland
  • A. V. Alexander – First Lord of the Admiralty (in charge of the navy)
  • William Graham – President of the Board of Trade (in charge of business and trade)
  • Sir Charles Philips Trevelyan – President of the Board of Education (in charge of schools)
  • Noel Buxton – Minister of Agriculture (in charge of farming)
  • Margaret Bondfield – Minister of Labour (in charge of jobs and workers' rights)
  • Arthur Greenwood – Minister of Health
  • George Lansbury – First Commissioner of Works (in charge of public buildings and parks)

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