Labour, nonetheless, set about enacting the measures that in some cases had been its program since the beginning of the century. Nationalization of railroads and coal mines, which were in any case so run down that any government would have had to bring them under state control, and of the Bank of England began immediately. In addition, road transport, docks and harbours, and the production of electrical power were nationalized. There was little debate. The Conservatives could hardly argue that any of these industries, barring electric power, was flourishing or that they could have done much differently.
More debate came over Labour’s social welfare legislation, which created the “welfare state.” Labour enacted a comprehensive program of national insurance, based upon the Beveridge Report (prepared by economist William Beveridge and advocating state action to control unemployment, along with the introduction of free health insurance and contributory social insurance) but differing from it in important ways. It regularized the de facto nationalization of public assistance, the old Poor Law, in the National Assistance Act of 1946, and in its most controversial move it established the gigantic framework of the National Health Service, which provided free comprehensive medical care for every citizen, rich or poor. The pugnacious temper of the minister of health, Aneurin Bevan, and the insistence of radical elements in the Labour Party upon the nationalization of all hospitals provoked the only serious debate accompanying the enactment of this immense legislative program, most of which went into force within two years of Labour’s accession to office. Bevan emerged at this time as an important figure on the Labour left and would remain its leader until his death in 1960.
Aneurin Bevan, c. 1950.ANL/REX/Shutterstock.com
Economic crisis and relief (1947)
Labour’s record in its first 18 months of office was distinguished. In terms of sheer legislative bulk, the government accomplished more than any other government in the 20th century save perhaps Asquith’s pre-World War I administration or the administration of Margaret Thatcher (1979–90). Yet by 1947 it had been overtaken by the economic crisis, which had not abated. The loan from the United States that was supposed to last four years was nearly gone. Imports were cut to the bone. Bread, never rationed during the war, had to be controlled. Britain had to withdraw support from Greece and Turkey, reversing a policy more than a century old, and call upon the United States to take its place. Thus, at Britain’s initiative, the Truman Doctrine came into existence.
Relief came with U.S. Secretary of State George C. Marshall’s announcement that the United States would undertake a massive program of financial aid to the European continent. Any country in the Eastern or Western bloc was entitled to take part. Although the Soviet Union immediately denounced the Marshall Plan as the beginning of a division between the East and the West, all western European countries, including Britain, hastened to participate. It can be argued that the Marshall Plan and the Truman Doctrine represent the permanent involvement of the United States in Europe. Withdrawal from the empire
Britain, not entirely by coincidence, was also beginning its withdrawal from the empire. Most insistent in its demand for self-government was India. The Indian independence movement had come of age during World War I and had gained momentum with the Massacre of Amritsar of 1919. The All-India Congress Party, headed by Mohandas K. Gandhi, evoked sympathy throughout the world with its policy of nonviolent resistance, forcing Baldwin’s government in the late 1920s to seek compromise. The eventual solution, embodied in the Government of India Act of 1935, provided responsible government for the Indian provinces, the Indianization of the civil service, and an Indian parliament, but it made clear that the Westminster Parliament would continue to legislate for the subcontinent. The act pleased no one, neither the Indians, the Labour Party, which considered it a weak compromise, nor a substantial section of the Conservative Party headed by Churchill, which thought it went too far. Agitation in India continued.
Further British compromise became inevitable when the Japanese in the spring of 1942 swept through Burma to the eastern borders of India while also organizing in Singapore a large Indian National Army and issuing appeals to Asian nationalism. During the war, Churchill reluctantly offered increasing installments of independence amounting to dominion status in return for all-out Indian support for the conflict. These offers were rejected by both the Muslim minority and the Hindu majority.
The election of a Labour government at the end of World War II coincided with the rise of sectarian strife within India. The new administration determined with unduly urgent haste that Britain would have to leave India. This decision was announced on June 3, 1947, and British administration in India ended 10 weeks later, on August 15. Burma (now Myanmar) and Ceylon (now Sri Lanka) received independence by early 1948. Britain, in effect, had no choice but to withdraw from colonial territories it no longer had the military and economic power to control.
The same circumstances that dictated the withdrawal from India required, at almost the same time, the termination of the mandate in Trans-Jordan, the evacuation of all of Egypt except the Suez Canal territory, and in 1948 the withdrawal from Palestine, which coincided with the proclamation of the State of Israel. It has been argued that the orderly and dignified ending of the British Empire, beginning in the 1940s and stretching into the 1960s, was Britain’s greatest international achievement. However, like the notion of national unity during World War II, this interpretation can also be seen largely as a myth produced by politicians and the press at the time and perpetuated since. The ending of empire was calculated upon the basis of Britain’s interests rather than those of its colonies. National interest was framed in terms of the postwar situation—that is, of an economically exhausted, dependent Britain, now increasingly caught up in the international politics of the Cold War. What later became known as “decolonization” was very often shortsighted, self-interested, and not infrequently bloody, as was especially the case in Malaysia (where the politics of anticommunism played a central role) and in Kenya. Conservative government (1951–64)
The last years of Attlee’s administration were troubled by economic stringency and inflation. The pound was sharply devalued in 1949, and a general election on February 23, 1950, reduced Labour’s majority over the Conservative and Liberal parties to only five seats. Attlee himself was in poor health, and Ernest Bevin, formerly the most politically powerful man in the cabinet, had died. More-radical members of the party, led by Aneurin Bevan, were growing impatient with the increasingly moderate temper of the leadership. On October 25, 1951, a second general election in a House of Commons not yet two years old returned the Conservatives under Churchill to power with a majority of 17 seats.
The Conservatives remained in power for the next 13 years, from October 1951 until October 1964, first under Churchill—who presided over the accession of the new monarch, Queen Elizabeth II, on February 6, 1952, but was forced to resign on account of age and health on April 5, 1955—and then under Churchill’s longtime lieutenant and foreign secretary, Anthony Eden. Eden resigned in January 1957, partly because of ill health but chiefly because of his failed attempt to roll back the retreat from empire by a reoccupation of the Suez Canal Zone after the nationalization of the canal by the Egyptian president, Gamal Abdel Nasser, in the summer of 1956. This belated experiment in imperial adventure drew wide criticism from the United States, the British dominions, and indeed within Britain itself. Although it was cut short in December 1956, when UN emergency units supplanted British (and French) troops, the Suez intervention divided British politics as few foreign issues have done since. Eden was succeeded by his chancellor of the Exchequer, Harold Macmillan. Macmillan remained in office until October 1963, when he too retired because of ill health, to be succeeded by Sir Alec Douglas-Home, then foreign secretary. In this period of single-party government, the themes were economic change and the continued retreat from colonialism.