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Post War Consensus

Post War Consensus
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Today, British politics is more polarised than ever. The British political system is shrouded in debate and dispute, with political parties disagreeing on all matters from foreign affairs to Brexit strategy, from fiscal responsibility to economic policy.

It's hard to comprehend a time when MPs united behind a common goal, disregarding party ideology and putting the needs of the British public first. This period – known as the Post-War Consensus – saw collaboration between the major political parties for four decades.

But how did consensus politics originate? How successful was it? How did it end?

MP

Standing for 'Member of Parliament', an MP is an elected official representing a specific area in Parliament.

Post War Consensus Meaning

After the devastation of the Second World War, a new type of politics emerged in Britain – one in which parties on both sides of the political spectrum sought to address the needs of post-war British society. The period of consensus saw the establishment of the Welfare State. Welfare policies included the establishment of the National Health Service (NHS), educational reform, and increased social welfare.

Welfare State

This term refers to a system of government in which the State protects its citizens' financial, social, and healthcare needs.

Post War Consensus Definition

The post-war consensus in Britain began in 1945 with the election of Clement Attlee's Labour government. Attlee initiated the Welfare State upon election, establishing free universal healthcare, sick pay, and unemployment benefits. Successive governments continued such far-reaching welfare reforms for 30 years.

The end of Consensus politics came in the late 1970s with the rise of Margaret Thatcher. Aiming to reduce inflation, Thatcher privatised utilities, sold off council housing, and curbed full-time employment.

Consensus politics

This term describes a period when different political parties reach an agreement on policies such as the economy, industry, and education.

Post-War Consensus Timeline

Here is a quick timeline outlining the post-war consensus period.

DateEvent
1945Clement Attlee elected.
The Family Allowances Act.
1946The National Insurance Act.
The Industrial Injuries Act.
Nationalisation of coal, civil aviation, cable and wireless, and the Bank of England.
1947Britain's nuclear program began.
1948Creation of the NHS.
The National Assistance Act.
Nationalisation of road transportation and electricity.
1949Nationalisation of iron and steel.
1951Winston Churchill elected.
1952The UK's first atomic bomb was tested.
1956The Suez Canal Crisis took place.
1957The UK tested its first hydrogen bomb.
The Homicide Act.
The Rent Act.
1959Harold Macmillan elected.
The UK became a founding member of the European Free Trade Association (EFTA).
1962The Commonwealth Immigration Act.
1963The Profumo Affair.
1963-4Alec Douglas-Home became Prime Minister.
1964Harold Wilson became Prime Minister.
1976James Callaghan became Prime Minister.
1979Margaret Thatcher became Prime Minister, spelling the end of Consensus politics.

The Conservative Party and the Labour Party

Before we examine the post-war consensus, we must get to grips with the history and ideologies of both the Conservative Party and the Labour Party. We can only fully comprehend the enormity of Consensus Politics by understanding the two major political parties.

The Conservative Party

The Conservative party is one of the oldest political parties in the United Kingdom. They sit on the right of the political spectrum. The party was formed in the 1830s from the old 'Tory party' after the Reform Bill of 1832, which granted voting rights to middle-class citizens. In 1834, the first Conservative government was formed by Sir Robert Peel, who focused on law and order and orderly taxation.

The party split in 1846 over the issue of the repeal of the Corn Laws; consequently, the Conservatives were out of government for the next thirty years. Eventually, the party was reorganised by Benjamin Disraeli, who was Prime Minister for a few months in 1868 and then from 1874-1880.

Corn Laws

Passed in 1815, the Corn Laws decreased imported grain through tariffs and thus increased Britain's reliance on domestic agriculture.

The Labour Party

The Labour Party was formed in February 1900 when the Labour Representation Committee met in London. After winning 26 seats in the 1906 general election, their name was changed to the Labour Party. The Party has been described as a Social Democratic party and stands centre-left on the political spectrum.

It was created out of the need for better representation of the working classes after voting rights had been gradually extended to these classes during the 19th century. Support for the new Labour Party gradually grew over the first half of the 20th century. They first came into power as a minority government under Ramsay MacDonald in 1924 and 1929-1931.

The Labour Party's rise to prominence came at the end of the Second World War when the party won a landslide victory in the 1945 general election, and Clement Attlee became Prime Minister.

Differences between the Labour and Conservative Parties

Below is a table outlining the differences between the two major parties.

IssueConservative PartyLabour Party
Political AlignmentCentre-right.Centre-left.
Government control on the economyWants less government control.Wants more government control.
TaxationWants lower taxation.Wants higher taxation.
Nationalisation of IndustriesAgainst nationalisation.For nationalisation.
Social OutlookMore socially conservative, valuing tradition.More socially liberal.
Welfare StateFor the welfare state but wants controls and limits on benefits to encourage people to work.For the welfare state, its upkeep and expansion.

Post-War Consensus

After the devastation of the Second World War, there was a cross-party agreement about Britain's future. Although both parties had ideological differences, they agreed that Britain should enact far-reaching welfare reform while maintaining its international standing.

Britain's consensus included all areas of foreign policy, and a focus on social and economic reform. Both Labour and Conservative governments between 1945 and 1979 ensured that the following policies were implemented:

  • Welfare provisions.
  • A publicly-funded National Health Service.
  • Nationalisation of industries and public utilities.
  • National Insurance reform.
  • Social security.
  • Full employment.
  • Introduction and development of nuclear weapons.

Consensus politics NHS StudySmarterFig. 1 - 1948 leaflet outlining the National Health Service

Post War Consensus UK

This section will look at the Prime Ministers from 1945-1979 and their engagement with Consensus Politics.

Clement Attlee (1945-1951)

Clement Attlee became Prime Minister in 1945 after Labour's landslide victory in the general election.

Consensus Politics Clement Attlee StudySmarterFig. 2 - Clement Attlee

Under his leadership, several fundamental aspects of the welfare state were created:

  • The Family Allowance Act of 1945 gave monetary provisions to support children.
  • The National Insurance Act of 1946 provided various benefits for sickness, injury, unemployment, and widow's benefit.
  • The creation of the National Health Service in 1948 provided universal free healthcare. Consensus politics was integral to the foundation of the NHS. While the Conservatives disliked large public spending, they wholly backed the policy.
  • The nationalisation of industries and utilities such as coal, iron, steel, and electricity.

Winston Churchill (1951-1955)

The Welfare State set up by the Attlee government went completely against traditional Conservative principles. It involved high taxation, lots of government spending, and interference in people's personal lives.

While Clement Attlee is often given credit for creating the Welfare State, Winston Churchill passed an Education Act in 1944, a year before Attlee was appointed as Prime Minister. The Education Act of 1944 introduced universal secondary education and raised the school-leaving age to 16.

While people thought the Welfare State would be dismantled, Winston Churchill stuck by the post-war consensus and continued Attlee's work. Installing Harold Macmillan as Minister of Housing, Churchill's government pledged to build 300,000 homes in a year.

Four-fifths of both parties agree on four-fifths of what should be done, and after all, we all sink or swim together on our perilous voyage, ever-accelerating into the unknown.1

- Winston Churchill, 1952

Anthony Eden (1955-1957)

Anthony Eden became Prime Minister in 1955, succeeding Winston Churchill. During his tenure, the two major crises were the Suez Canal Crisis and the run on sterling.

The Suez Crisis

An attempt by Great Britain, France, and Israel to regain control of the Suez Canal in 1956.

Run on sterling

This is an economic term that describes when financial traders panic about the pound's value and sell what they have of it to avoid loss.

The Suez Crisis was a colossal failure for Eden, shattering his authority at home and abroad. It angered the Americans and drew much criticism from the British people and politicians. Eden was viewed as arrogant and unfit to lead the government. He had made too many decisions without the government's support, proving severely detrimental to the country.

Harold Macmillan (1957-1963)

Harold Macmillan began his career within the Conservative Party as Minister of Housing. He was later promoted to Minister of Defence, Foreign Secretary, and Chancellor of the Exchequer. The resignation of Eden meant that Macmillan was forced to tackle the fallout from the Suez Canal Crisis.

harold macmillan jfk politics studysmarterFig. 3 - Kennedy and Macmillan

Throughout his premiership, MacMillan sought to tackle the rising rate of unemployment. To achieve this, he appointed socially liberal Richard 'Rab' Butler as Home Secretary. The appointment of Butler suggested that MacMillan was trying to change the more traditional social outlook of the Conservatives in line with the general post-war consensus on social issues.

Macmillan passed several pieces of legislation in line with the post-war consensus:

  • The 1957 Homicide Act came close to abolishing the death penalty.
  • The Rent Act of 1957 abolished rent control, putting six million more properties on the market.
  • In 1962, Macmillan negotiated the Nassau Agreement with President John F Kennedy, which gave Britain the Polaris nuclear system. This system would be used as the UK's nuclear deterrent until 1996.

Alec Douglas-Home (1963-1964)

Alec Douglas-Home started his career as a member of parliament for the Scottish Unionist Party. From 1937 to 1939, he served as a parliamentary private secretary to the then Prime Minister Neville Chamberlain. In 1956, he served as the Commonwealth Secretary during the Suez Canal Crisis.

Despite being Prime Minister for only one year, Douglas-Home oversaw the reform of the Conservative Party and actively tried to push forward economic growth. One of his most significant policies was the Resale Price Act of 1964. This legislation stopped manufacturers from imposing resale prices on items and thus helped cut prices and drive economic growth.

Harold Wilson (1964-1970, 1974-1976)

Born in Yorkshire during the First World War, Harold Wilson became the youngest serving member of the cabinet of the 20th century when he was made President of the Board of Trade aged just 31.

Under his leadership as Prime Minister, many significant goals were achieved. The 1965 Murder Act formally abolished the death penalty, and the Sexual Offences Act of 1967 decriminalised several aspects of homosexuality.

In his second period of leadership, Wilson continued the post-war consensus by focusing on domestic policy and social reform. He achieved reforms in education, health, gender equality, housing, and welfare.

Consensus politics Harold Wilson StudySmarterFig. 4 - Harold Wilson

Edward Heath (1970-1974)

Edward Heath became Prime Minister during significant industrial reform and economic decline. He led the UK into the European Economic Community during his tenure – something other Prime Ministers had been trying to do for over a decade.

Heath's tenure was defined by industrial action and Trade Union activity:

  • He attempted to weaken the power of the Trade Unions with the 1971 Industrial Relations Act; this was unsuccessful and was subsequently repealed in 1974.
  • Under his leadership, there were two significant miners' strikes in 1972 and 1974. The Miners' strike of 1974 led to the 'Three-Day Week'.

The Three-Day Week: Between 1973 and 1974, industrial action and strikes necessitated that electricity use be limited to three consecutive days.

James Callaghan (1976-1979)

James Callaghan became Prime Minister after the shock resignation of Harold Wilson in 1976.

Callaghan had success in social reform:

  • The 1977 Housing Act made local governments responsible for housing the homeless.
  • The Police Act of 1976 made the complaints system for the Police more efficient.
  • The 1977 Education Act limited the number of independent or grant-funded schools in any one area.

Despite successes in social reform, Britain's economy was in disarray. In an attempt to reduce inflation, Callaghan cut wages. This action prompted widespread strikes known as the Winter of Discontent.

Winter of Discontent

This is the term given to the period of widespread striking between November 1978 and February 1979.

Margaret Thatcher (1979-1990)

Margaret Thatcher had a long political career before her rise to the role of Prime Minister in 1979, serving as Shadow Environment Secretary and Education Minister before her accession to the leadership of the Conservative Party in 1979.

Thatcher's leadership has been considered the death knell for Consensus politics. Thatcher wanted:

  • A smaller government.
  • Fewer economic controls.

  • Greater independence of the individual from the State.

Thatcher disliked the Welfare State and believed people should rely on themselves rather than the State; consequently, she embarked on a mission to withdraw government control. This took the form of privatising many vital industries, the sale of council housing to private tenants, and reducing government spending on social services, education, healthcare, and housing. With these reforms, the era of consensus politics was over.

Post War Consensus - Key Takeaways

  • Consensus Politics was an agreement between political parties on the need for social reform and the direction of UK domestic policy after the Second World War.

  • The consensus's significant achievements were the National Health Service, the benefits system, and reform on crime, education, and housing.
  • The focus of Consensus Politics lasted for around thirty years, continuing through both Labour and Conservative governments.

  • Consensus Politics ended at the close of the 1970s with the rise to power of Margaret Thatcher and her ideology of economic neo-liberalism and self-reliance.

References

  1. Winston Churchill 'Speech at Woodford, London' (1952)

Frequently Asked Questions about Post War Consensus

At the end of the Second World War, Britain was suffering from high debts and there was a desperate need for social reform. Therefore, opposing sides of government came together under an agreed view of the direction policy needed to go in.

The post-war consensus was a period where both the Conservative and Labour party agreed to focus on domestic policy in Britain.

Yes, there was. It existed from 1945-1970.

It refers to a period after WWII where both the Conservative and Labour party were agreed on the focus of domestic policy in Britain. 

Consensus politics broke down in the 1970s during the leadership of Margaret Thatcher. She sold off council housing, privatised industries and utilities, and ended full employment.

Final Post War Consensus Quiz

Post War Consensus Quiz - Teste dein Wissen

Question

When did the Macmillan government begin and end?

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Answer

Macmillan became PM in 1957, replacing Eden and he resigned in 1963.

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Question

What was Macmillan’s involvement in the Suez Crisis?

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Answer

He encouraged the invasion of Egypt, despite being advised to not take action until after the US Presidential election. This caused damage to Britain’s relations with the US.

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What is the term for the relationship between Britain and the USA?

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Answer

‘The special relationship’.

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Question

Why was 1959 a high point for Macmillan?

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Answer

1. The Conservative Party won the general election for the third time.

2. The economy was still booming.

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What speech is Harold Macmillan famous for?

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Answer

 ‘The Wind of Change’.

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What is Macmillan’s most famous quote about the post-war British economy?

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Answer

‘Most of our people have never had it so good’.

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What are the two important takeaways from ‘Most of our people have never had it so good’?

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1. ‘The Age of Affluence’: this was a time of economic growth: there was an increase in the average wages, high housing rates, and high standards of living.

2. Macmillan was also acknowledging that this period of economic growth was unsustainable, which led to the implementation of ‘Stop-Go’ economic policies.

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Question

What was Macmillan’s approach to economics?

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Answer

Stop-Go economics:

- The ‘Go’ phase: expanding the economy with low interest rates and increasing consumer spending. This leads the economy to ‘overheat’.

- The ‘Stop’ phase: this phase ‘cools down’ the economy through higher interest rates and spending cuts. When the economy cools down, controls are removed so that the economy can naturally increase.

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Question

What were the embarrassing scandals and problems of Macmillan’s government?

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Answer

  1. The application put forward by Macmillan to join the EEC was vetoed by de Gaulle.
  2. Britain’s problems with the balance of payments led to financial instability.
  3. Macmillan desperately dismissed seven members of his cabinet.
  4. The Profumo Scandal exposed the Conservative Party as corrupt and thereby ruined the reputation of the Macmillan government and the international relations he worked to repair during his premiership.

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What was the impact of the problems and scandals during Macmillan’s government?

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Answer

- The Conservative Party became unpopular, as they were exposed as corrupt and out-of-touch.

- Damaged special relationship with the US.

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Why did Macmillan resign?


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Answer

For health reasons. He was suffering from prostate problems.

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What is Macmillan’s reputation?


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Answer

Originally seen as a hero, he would go on to be seen as ruthless and his traditionalism would make him lose favour with the public for being out-of-touch.

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Who replaced Macmillan?

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Answer

Alec Douglas-Home

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What were Harold Macmillan's beliefs?

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Answer

  • As a One-Nation Conservative, he believed in government intervention and paternalism.
  • Believed in the post-war consensus.
  • Believed in the nuclear deterrent, but also believed the US was too rigid in their approach to the Cold War.
  • Believed in invading Egypt during the Suez Crisis.
  • Believed in the special relationship with the US.

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Question

When was Alec Douglas-Home Prime Minister?

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Answer

He was Prime Minister from 19 October 1963 to 16 October 1964. He served two days short of a year.

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Who supported Douglas-Home’s candidacy?

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Answer

Prime Minister Harold Macmillan who wanted Douglas-Home to replace him.

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What position in government is Douglas-Home’s legacy, and why?

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Foreign Secretary:

  • He negotiated the Partial Nuclear Test Ban Treaty with the US and USSR with astuteness and composure.
  • He was competent in his support to Prime Minister Harold Macmillan, backing Britain’s accession to the EEC and US defiance of Soviet threats of nuclear attack.

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Question

What is resale price maintenance?

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Answer

Resale price maintenance is the system in which manufacturers set the prices for the sale of their goods.

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What is the purpose of resale price maintenance?

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Price-fixing protected manufacturers, particularly during and after the wars, as they could set the prices to keep their industry and its workers afloat.

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Who came up with the Resale Prices Bill (1964)?

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Answer

The President of the Board of Trade, Edward Heath.

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Why was the Resale Prices Bill introduced (1964)?

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Answer

The bill was introduced to benefit the economy, allowing competition between businesses by letting them set their prices.

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Why should Douglas-Home not be credited with passing the Resale Prices Bill (1964)?


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Answer

He was incompetent when it came to economics. The bill was passed under his government, but it was the work of Edward Heath.

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Why was Douglas-Home seen as incompetent?

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Answer

He was inexperienced in domestic politics and economics.

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To whom did Douglas-Home lose the 1964 election?

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To Harold Wilson, the leader of the Labour Party.

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Why did Douglas-Home lose the 1964 general election?

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Answer

  • Disillusionment with the conservatives was growing. They were seen as corrupt, unworldly aristocrats.
  • Douglas-Home was incompetent.
  • Harold Wilson was more likeable and competent.

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Question

When did Clement Attlee become Prime Minister?

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Answer

1945

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When was the National Health Service created?

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Answer

1948

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Question

What was the Beveridge Report?

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Answer

A report giving recommendations for how to reform the social security system.

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Question

Name three industries that were nationalised under the Attlee Government.

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Answer

Any from: Electricity, coal, iron, steel, cable, public transport.

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Who was Aneurin Bevan?

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Answer

Minister for Health, responsible for the creation of the NHS

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Which international organisation was Attlee's government fundamental in founding in 1949?

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Answer

NATO - North Atlantic Treaty Organisation

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Question

Which war did Britain get involved in in 1950? 

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Answer

The Korean War

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Question

Which American plan gave Britain financial aid after the Second World War?

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Answer

The Marshall Plan

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Question

Who resisted the creation of the NHS?

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Answer

Doctors - they had a lot of concerns about what it would mean for them.

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When was the National Insurance Act introduced?

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Answer

1946

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Question

Name three countries that gained independence from Britain under Attlee's government.

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Answer

India, Burma/Myanmar, Ceylon/Sri Lanka, Jordan, Palestine

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Question

What did the 1947 Transport Act do?

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Answer

Nationalised many forms of public transport and brought them under control of the newly-created British Transport Commission

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Question

Why did Aneurin Bevan resign in 1951?

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Answer

Chancellor Hugh Gaitskell introduced prescription charges.

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Question

Which weapons program began under Attlee's government?

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Answer

Britain's nuclear program

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Question

What was the outline of Attlee's foreign policy?

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Answer

Pro-America, Anti-Soviet

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Question

When was Winston Churchill Prime Minister?

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Answer

1940-45 and 1951-1955

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Who did Churchill take over from?

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Answer

Neville Chamberlain

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What hindered Churchill personally during his second term?

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Answer

His age and ill health

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Question

Which minister was particularly influential in economic policy?

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Answer

Richard 'Rab' Butler

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Question

What new word was coined to describe Rab Butler's economic policy?

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Answer

Butskellism

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Question

Why did Churchill's government maintain the Welfare State?

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Answer

Wanted to keep the post-war consensus intact and not lose popularity

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Question

Which industry was denationalised under the Churchill government?

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Answer

Steel

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Question

Was Churchill for or against decolonisation?

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Answer

Against - he was a staunch imperialist

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Question

Which rebellion gained particular criticism for Churchill?

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Answer

The Mau Mau Rebellion in Kenya

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Question

What significant event happened in 1952 for Britain's defence program?

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Answer

First test of an atomic bomb

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