David Lloyd George - Cabinet Minister (1906–1916)

Cabinet Minister (1906–1916)

In 1906 Lloyd George entered the new Liberal Cabinet of Sir Henry Campbell-Bannerman as President of the Board of Trade. In that position he introduced legislation on many topics, from Merchant Shipping and Companies to Railway regulation, but his main achievement was in stopping a proposed national strike of the railway unions by brokering an agreement between the unions and the railway companies. While almost all the companies refused to recognise the unions, Lloyd George persuaded the companies to recognise elected representatives of the workers who sat with the company representatives on conciliation boards — one for each company. If those boards failed to agree then there was a central board. This was Lloyd George's first great triumph, for which he received praises from, among others, Kaiser Wilhelm II. Two weeks later, however, his great excitement was crushed by his daughter Mair's death from appendicitis.

On Campbell-Bannerman's death he succeeded Asquith, who had become Prime Minister, as Chancellor of the Exchequer from 1908 to 1915. While he continued some work from the Board of Trade — for example, legislation to establish a Port of London authority and to pursue traditional Liberal programmes such as licensing law reforms — his first major trial in this role was over the 1908–1909 Naval Estimates. The Liberal manifesto at the 1906 general elections included a commitment to reduce military expenditure. Lloyd George strongly supported this, writing to Reginald McKenna, First Lord of the Admiralty, "the emphatic pledges given by all of us at the last general election to reduce the gigantic expenditure on armaments built up by the recklessness of our predecessors."

He then proposed the programme be reduced from six to four dreadnoughts. This was adopted by the government but there was a public storm when the Conservatives, with covert support from the First Sea Lord Admiral Jackie Fisher, campaigned for more with the slogan "We want eight and we won't wait". This resulted in Lloyd George's defeat in Cabinet and the adoption of estimates including provision for eight dreadnoughts. This was later to be said to be one of the main turning points in the naval arms race between Germany and Britain that contributed to the outbreak of World War I.