Life in Edwardian England is often depicted, Downton Abbey style, as a terribly civilised and genteel affair; a time of “peace and plenty”.
But of course, there wasn't plenty for everyone: 25% of the country was living in utter poverty. A quarter of children born in Britain's disease-ridden slums wouldn't survive to the age of one. If they did, they were sent out to work at a scandalously young age to help support the family.
The Liberal Party of the day was becoming more radical. The government of Herbert Asquith was keen to push through a swathe of social welfare reforms, with Winston Churchill chief among the advocates of a land value tax.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE
Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
And on this day in 1909, the Chancellor of the Exchequer, David Lloyd George, introduced the “People's Budget” to Parliament, claiming it would “wage implacable warfare against poverty and squalidness”. Its social insurance provisions, paid for out of increased land and income taxes, laid the foundations of the welfare state that would follow.
In the Budget, the over-70s were given a pension. Acts provided for new schools, and increased access to secondary education for working class pupils. Tax relief was given to those with children, and free school meals were introduced. A probation service for young offenders was set up, and labour exchanges were created to help alleviate unemployment.
Of course, not everyone was in favour. The Conservatives waged a campaign against it; newspapers, including The Times and Daily Mail, petitioned for its rejection; landed gentry organised protest meetings up and down the country.
The House of Lords rejected the Budget, and sparked a constitutional crisis. The Liberals went on the offensive, and vowed to reform the Lords.
Lloyd George quipped that “a fully-equipped Duke costs as much to keep as two Dreadnoughts and they are just as great a terror and they last longer”, and demanded to know if “500 men, ordinary men, chosen accidentally from among the unemployed”, should override the judgement of “millions of people who are engaged in the industry which makes the wealth of the country”.
The crisis resulted in the introduction of the Parliament Act of 1911 stripping the Lords of their power of veto.
-
Millions of pension savers could get targeted support under new proposalsThe proposals are part of the FCA’s attempt to tackle the advice gap, after 75% of savers admitted they don’t have a clear plan for their pension
-
RICS: Housing market continues to strengthen but 2025 could be challengingThe latest survey by the Royal Institution of Chartered Surveyors reports a resilient UK housing market, but warns of headwinds next year
-
31 August 1957: the Federation of Malaya declares independence from the UKFeatures On this day in 1957, after ten years of preparation, the Federation of Malaya became an independent nation.
-
13 April 1960: the first satellite navigation system is launchedFeatures On this day in 1960, Nasa sent the Transit 1B satellite into orbit to provide positioning for the US Navy’s fleet of Polaris ballistic missile submarines.
-
9 April 1838: National Gallery opens in Trafalgar Square
Features On this day in 1838, William Wilkins’ new National Gallery building in Trafalgar Square opened to the public.
-
3 March 1962: British Antarctic Territory is created
Features On this day in 1962, Britain formed the British Antarctic Territory administered from the Falkland Islands.
-
10 March 2000: the dotcom bubble peaks
Features Tech mania fanned by the dawning of the internet age inflated the dotcom bubble to maximum extent, on this day in 2000.
-
9 March 1776: Adam Smith publishes 'The Wealth of Nations'
Features On this day in 1776, Adam Smith, the “father of modern economics”, published his hugely influential book The Wealth of Nations.
-
8 March 1817: the New York Stock Exchange is formed
Features On this day in 1817, a group of brokers moved out of a New York coffee house to form what would become the biggest stock exchange in the world.
-
7 March 1969: Queen Elizabeth II officially opens the Victoria Line
Features On this day in 1969, Queen Elizabeth II took only her second trip on the tube to officially open the underground’s newest line – the Victoria Line.
