Formation of the Labour Party

Formation of the Labour Party
19th century – strong trade unions in the UK
Labour Party was formed in 1900
Response to legal attacks on unions
Dominated by unions – hence, ‘Labour’ Party
Party of the organised working class
Socialist societies (e.g. Fabians)
Extension of suffrage 1918
Overtook Liberals in 1920s
Labour Governments in 1924 and 1929-31
Party split in 1931

Keir Hardie-a former miner,
became the first working
class MP to be elected for
the Independent
Labour Party (ILP) in 1892.

Ramsay McDonald- the first Labour Prime Minister

Attlee Government 1945-51
Nationalisation of key industries
Welfare state (Beveridge Report)
Formation of National Health Service
Keynesian demand-management
High-water mark of British socialism – and accepted by Tories in 1950s
Opposition in 1950s – splits between Left and Right in Labour Party

Clement Richard Attlee

Labour’s Problems in Government: 60s & 70s
Wilson Govenments 1964-70 and 1974-76
Economic recessions
Dilemma: maintain high spending and redistribution – or target inflation?
Conflict with unions
Callaghan Govenrmnt 1976-79
End of ‘tax & spend’ statist consensus
‘Winter of Discontent’ 1978-79 – wave of strikes that brought down Labour Govt

Harold Wilson

Jim Callaghan

1979-97
1979-83: shift to Left – electorally damaging
Formation of SDP in 1981
1983-92: ‘modernisation’ under Kinnock
Abandoned left-wing policies on economy, defence
Centralised power inside Labour Party
Four consecutive electoral defeats
1992-94: Smith – reformed link with unions
1994: Blair elected as ultra-moderniser
Neil Kinnock
Neil Kinnock

Neil Kinnock

Blair: Modernising the Labour Party
Rebranded party as ‘New Labour’
Tackling internal opponents (Left & unions)
Rewriting Clause IV
Confront 4 major changes
Electoral – popularity of Tory policies
No return to ‘tax-and-spend’; tough on crime
Sociological – demise of working class
Appeal to ‘Middle England’
International – globalisation
Ideological – socialism and fall of communism

New Labour Versus Old Labour
Community
Consumers
Post-industrial economy
Equality of opportunity – training and education
Welfare-to-work
Rights & responsibilities
‘Mixed economy’ in public services
Market economy
Regulate private sector
Working class
Producers (unions)
Industrial economy
Equality of outcome – redistribution
Welfarism
Social & welfare rights
State provision of public services
Mixed economy
Nationalisation
NEW LABOUR
OLD LABOUR

Blair’s First Term in Government,
1997-2001
Cautious start 1997-99
Bank of England independence
Emphasis on sound economic management
Constitutional changes
Welfare reforms – ‘New Deal’
Big spending increases in 2000
Healthcare & education – but also tuition fees

Blair’s Second Term, 2001-05
Dominated by foreign policy – 9/11, Iraq
Domestic policy – big spending increases and some tax increases
But more emphasis on reform of public services – marketisation, choice in education and health (limits of the state)
Foundation hospitals; university top-up fees
Blair & Brown – conflicts over reforms