1. 1947 – The Turning Point for the Labour Government?

2. It is early 1947 (imagine the opening credits of Star Wars) The Labour Government has been in power for eighteen months. More than 70 acts of parliament have been passed. Exports in 1946 were double those in 1945. The National Insurance and National Health Acts have been passed. Many industries have been nationalised. Rationing still exists on many things, however, including the addition of bread in 1946. From January to March 1947, Britain experienced its coldest weather for 50 years. The River Thames is frozen over, Big Ben has stopped working, innumerable villages are cut off due to snow, milk and mail deliveries are uncertain and many power lines are down. In many areas the use of railways is impossible, including from many power stations. The government, concerned about coal supplies since early 1946, is in the middle of the “Winter Crisis”.

3. What should the Government do?

4. What they did…… Electricity could NOT be used in houses between 9am and 12pm and 2pm and 4pm. Factories and businesses in some areas had no electricity at all.

5. The Consequences….. 1.8 million were temporarily unemployed. An estimated £200 million of exports were lost. Emmanuel Shinwell, the Minister of Fuel and Power, came under great attack from the Tories and the general public. The popular slogan “Shiver with Shinwell” was used. Shinwell eventually resigned but was very critical of Attlee, Morrison and Dalton. A Balance of Payments deficit developed. Britain’s gold and dollar reserves dwindled rapidly. The USA had given Britain a loan of $3.75 billion, negotiated by Keynes. It was now being spent on US imports. The pressure on the pound became intense as clearly dollars were more useful than pounds. The Chancellor had to suspend convertibility. Attlee came under fire, as did his Chancellor Hugh Dalton. Dalton resigned after breaking rules by releasing details of the budget to a journalist before he gave his speech in the House of Commons. He was replaced by Stafford Cripps in November.

6. Sir Stafford Cripps and Austerity Cripps made his priorities clear very early: “First are exports, second is capital investment in industry, and last are the needs, comforts and amenities of the family. The public must submerge all thought of personal gain and ambition”. Under Cripps, Labour took greater control of the economy. List the measures that Cripps introduced.