Liberal Party Facts & Worksheets

LIBERAL PARTY FROM 1902 TO FIRST WORLD WAR

• Arthur Balfour succeeded his uncle, the Marquess of Salisbury, as Prime Minister in 1902. Key milestones of Balfour’s tenure as Prime Minister encompassed the implementation of the 1902 Education Act and the resolution of the Boer War. When Balfour resigned in 1905, the issue of Tariff Reform caused a division in his cabinet.

1902 Education Act

The 1902 Education Act, also called the Balfour Act, was a contentious Act of Parliament that established the framework for primary education in England and Wales for 40 years.

Tariff Reform

British fiscal policy aimed at discontinuing the country’s commitment to free trade by implementing protective tariffs on imported goods.

• When Balfour resigned in 1905, the issue of Tariff Reform caused a division in his cabinet. As a result, Edward VII asked Campbell-Bannerman to create a new ministry. Campbell-Bannerman agreed, and in the subsequent 1906 general election, the Liberal Party achieved a resounding win.
• Significant legislation enacted within the initial months of assuming office comprised the Trades Disputes Act, which was a British legislation that granted trade unions protection from accountability for damages resulting from strike actions, and the Provision of School Meals Act, an Act to make provision for Meals for Children attending Public Elementary Schools in England and Wales. 
• Campbell-Bannerman’s health deteriorated significantly, leading to his resignation on 4 April 1908. Unfortunately, he passed away just 18 days later. Herbert Henry Asquith succeeded him as Prime Minister. Asquith designated David Lloyd George as the Chancellor of the Exchequer. 
• Lloyd George had long been a staunch critic of the Poor Law in Britain. He was resolute in his intention to take decisive measures that, in his own words, would eradicate the workhouse’s oppressive influence from the impoverished residences.
• He advocated for providing a guaranteed income to individuals who could no longer work. Lloyd George’s Old Age Pensions Act granted a weekly allowance to anyone aged 70 and over. To finance these pensions, Lloyd George had to increase government revenues by an additional £16 million annually. 
• In 1909, Lloyd George made a public declaration that later became recognised as the People’s Budget. This encompassed tax hikes. While those with lower incomes were required to pay 9 pence for every pound earned, those with annual incomes exceeding £3,000 were obligated to pay 1 shilling and 2 pence for every pound earned.
• Additional measures encompassed a rise in inheritance taxes on the assets of affluent individuals and substantial levies on gains derived from the possession and transaction of real estate. Additional advancements in Lloyd George’s budget encompassed the establishment of labour exchanges and the implementation of a children’s allowance on income tax.
• In response to the widespread unpopularity of the House of Lords among the British populace, the Liberal government implemented measures to diminish its authority. 
• The 1911 Parliament Act significantly reduced the authority of the House of Lords. Their authority to obstruct the approval of ‘money bills’ was revoked, and their capacity to impede other legislation was limited to three parliamentary sessions.
• When the House of Lords sought to impede the progress of this legislation, Prime Minister Asquith appealed to George V for assistance. 
• In 1912, Hilaire Belloc, a contributor to the political weekly publication The Eye-Witness, levied accusations of corruption against Lloyd George, Herbert Samuel and Rufus Isaacs. It was proposed that the men had gained a financial advantage by purchasing shares based on their awareness of a government contract awarded to the Marconi Company to construct a series of wireless stations.
• Despite the parliamentary inquiry uncovering evidence that Lloyd George, Herbert Samuel and Rufus Isaacs had personally benefited from the government’s policies, it was determined that the individuals were not guilty of corruption.
• In late July 1914, the British government realised the nation was on the brink of a conflict with Germany. The progressive faction of the Liberal Party expressed dissatisfaction with Lloyd George’s reluctance to challenge Britain’s participation in the First World War. Indeed, he quickly established himself as a prominent player in the government who advocated for intensifying the battle to achieve a swift triumph.

IDEOLOGY

• In the 19th century, the Liberal Party strongly advocated for classical liberalism, encompassing principles such as free trade and limited government intervention in the economy. This ideology is called Gladstonian liberalism after Gladstone emphasised laissez-faire economic policies.
• The Liberal Party advocated for social reform, individual freedom, curbing the authority of the monarchy and the Church of England (with many members being nonconformists), and expanding the right to vote.
• During the early 20th century, the Liberal Party’s position transitioned towards New Liberalism, which can be understood today as social liberalism. This ideology emphasises personal freedom while advocating for government engagement to ensure social welfare.
• The shift in political ideology was most prominently demonstrated by the Liberal government’s administration, led by Asquith and Lloyd George. Their implementation of Liberal reforms during the early 1900s laid the foundation for a rudimentary welfare state.
• The Liberal Party advocated for individualism, free trade and private enterprise, while opposing the centralising and oppressive influence of the state. However, it also implemented policies to prevent abuses of private power, promote social justice, and expand the state’s involvement in education, social welfare and industrial relations.
• The Liberal Party consistently pursued the reformation of the government system, and their changes significantly influenced the development of Britain’s political institutions. Regarding foreign policy, Liberal sentiments were characterised by a commitment to peace and a focus on international cooperation. The party exhibited caution towards imperial development throughout the 19th century and advocated for the self-determination of colonial peoples in the 20th century.
• The most prominent characteristic of the Liberal Party was its decentralised organisational structure. Due to the limited number of its members in Parliament for the majority of the 20th century, the party’s lawmakers and national headquarters had less control over the national organisation than the larger British parties. The local parties controlled the candidate selection process and allowed their members to vote directly for the party head.