27 February 1900: The launch of the Labour Party

Responding to the need for a single political party to represent the trade unions, the Labour Party was formed on this day in 1900.

In the second half of the 19th century, British politics was divided between the Liberals, who pitched themselves towards the middle class, and the Conservatives, who appealed to wealthier voters. However, the growth of the urban working class, combined with changes that increased their political power, meant that there was a need for a political party that represented their interests. At the same time, the fast-growing trade unions wanted to influence politics directly.

Initially, several small left-wing parties, such as the Independent Labour Party (ILP), contested elections, but a consensus soon emerged among the unions that they needed a single party. In February 1900, they formed the Labour Representation Committee (LRC), run by former ILP MP James Keir Hardie. The LRC won only two seats in the 1900 election, but support developed rapidly until it overtook the Liberals in 1922.

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Dr Matthew Partridge
Shares editor, MoneyWeek

Matthew graduated from the University of Durham in 2004; he then gained an MSc, followed by a PhD at the London School of Economics.

He has previously written for a wide range of publications, including the Guardian and the Economist, and also helped to run a newsletter on terrorism. He has spent time at Lehman Brothers, Citigroup and the consultancy Lombard Street Research.

Matthew is the author of Superinvestors: Lessons from the greatest investors in history, published by Harriman House, which has been translated into several languages. His second book, Investing Explained: The Accessible Guide to Building an Investment Portfolio, is published by Kogan Page.

As senior writer, he writes the shares and politics & economics pages, as well as weekly Blowing It and Great Frauds in History columns He also writes a fortnightly reviews page and trading tips, as well as regular cover stories and multi-page investment focus features.

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