Liberal Decline
In the 1918 general election Lloyd George, "the Man Who Won the War", led his coalition into another khaki election, and won a sweeping victory over the Asquithian Liberals and the newly emerging Labour Party. Lloyd George and the Conservative leader Andrew Bonar Law wrote a joint letter of support to candidates to indicate they were considered the official Coalition candidates – this "coupon" as it became known was issued against many sitting Liberal MPs, often to devastating effect, though not against Asquith himself. Asquith and most of his colleagues lost their seats. Lloyd George still claimed to be leading a Liberal government, but he was increasingly under the influence of the rejuvenated Conservative party. In 1922 the Conservative backbenchers rebelled against the continuation of the coalition, citing in particular the Chanak Crisis over Turkey and Lloyd George's corrupt sale of honours amongst other grievances, and Lloyd George was forced to resign. The Conservatives came back to power under Bonar Law and then Stanley Baldwin.
At the 1922 and 1923 elections the Liberals won barely a third of the vote and only a quarter of the seats in the House of Commons, as many radical voters abandoned the divided Liberals and went over to Labour. In 1922 Labour became the official opposition. A reunion of the two warring factions took place in 1923 when the new Conservative Prime Minister Stanley Baldwin committed his party to protective tariffs, causing the Liberals to reunite in support of free trade. The party gained ground in the 1923 general election but ominously made most of its gains from Conservatives whilst losing ground to Labour – a sign of the party's direction for many years to come. The party remained the third largest in the House of Commons, but the Conservatives had lost their majority. There was much speculation and fear about the prospect of a Labour government, and comparatively little about a Liberal government, even though it could have plausibly presented an experienced team of ministers compared to Labour's almost complete lack of experience, as well as offering a middle ground that could get support from both Conservatives and Labour in crucial Commons divisions. But instead of trying to force the opportunity to form a Liberal government, Asquith decided instead to allow Labour the chance of office in the belief that they would prove incompetent and this would set the stage for a revival of Liberal fortunes at Labour's expense. It was a fatal error.
Labour was determined to destroy the Liberals and become the sole party of the left. Ramsay MacDonald was forced into a snap election in 1924, and although his government was defeated, he achieved his objective of virtually wiping the Liberals out as many more radical voters now moved to Labour whilst moderate middle-class Liberal voters concerned about socialism moved to the Conservatives. The Liberals were reduced to a mere forty seats in Parliament, only seven of which had been won against candidates from both parties and none of these formed a coherent area of Liberal survival. The party seemed finished and during this period some Liberals, such as Churchill, went over to the Conservatives, while others went over to Labour. (Several Labour ministers of later generations, such as Michael Foot and Tony Benn, were the sons of Liberal MPs.)
Asquith died in 1928 and the enigmatic figure of Lloyd George returned to the leadership and began a drive to produce coherent policies on many key issues of the day. In the 1929 general election he made a final bid to return the Liberals to the political mainstream, with an ambitious programme of state stimulation of the economy called We Can Conquer Unemployment!, largely written for him by the Liberal economist John Maynard Keynes. The Liberals gained ground, but once again it was at the Conservatives' expense whilst also losing seats to Labour. Indeed the urban areas of the country suffering heavily from unemployment, which might have been expected to respond the most to the radical economic policies of the Liberals, instead gave the party its worst results. By contrast most of the party's seats were won either due to the absence of a candidate from one of the other parties or in rural areas on the "Celtic fringe", where local evidence suggests that economic ideas were at best peripheral to the electorate's concerns. The Liberals now found themselves with 59 members holding the balance of power in a Parliament where Labour was the largest party but lacked an overall majority. Lloyd George offered a degree of support to the Labour government in the hope of winning concessions, including a degree of electoral reform to introduce the alternative vote, but this support was to prove bitterly divisive as the Liberals increasingly divided between those seeking to gain what Liberal goals they could achieve, those who preferred a Conservative government to a Labour one and vice-versa.
The last majority Liberal Government in Britain was elected in 1906. The pre-World War I period in Britain was a period of worker strikes and civil unrest involving many violent confrontations between the police/troops, and civilians. Other "issues of the period" included the suffragettes and the Irish Independence movement. After the carnage of 1914–1918 the democratic reform of the Representation of the People Act 1918 instantly tripled the number of people allowed to vote in Britain from 7 to 21 million. The Labour Party benefited the most from this huge change in the British electorate, forming its first minority government in 1924.
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