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Lloyd George's "People's Budget," and the Parliamentary Act of 1911, Part II

Jun 19, 1998

As a result, Parliament was dissolved and the General Election was set for January 1910. The Liberals, before the crisis somewhat divided, went to the electorate with a unified front. The House of Lords' decision to veto Lloyd George's "People's Budget" fed the propaganda in his speeches, which talked of England being ruled by "five hundred men, chosen accidentally from among the unemployed." (1) Lloyd George's attacks were to be expected as he was a fiery populist who revelled in attacking the rich; what was surprising to many was the attacks made by Winston Churchill, the young Liberal reformer, who was also a grandson of a duke. In a major campaign speech, Churchill referred to the House of Lords as "a played out, obsolete, anachronistic Assembly, a survival of a feudal arrangement utterly passed out of its original meaning, a force long since passed away, which only now requires a smashing blow from the electors to finish it off for ever." (2) Prime Minister Henry Herbert Asquith seriously thought that his Party was on the threshold of making history. (3)

The electorate, however, did not follow Churchill's lead; nor did the election result in the dramatic outcome envisioned by Asquith. Instead a pre-election majority of about 130 seats (over all other Parties in Parliament) was reduced to -120. The Liberals lost 125 seats, receiving only 275 seats; the Conservatives received just two seats fewer, 273. (4) The balance of power was held by the two other large Parties, the Irish Nationalists and the new Labour Party. Both generally supported the Liberals, and thus, the Liberals remained in office. Theirs was a much reduced mandate from 1906, but, nevertheless, a mandate.

The "People's Budget" again was passed by the House of Commons, but unlike last time, the Lords allowed it to pass. (5) This, however, was not good enough for Asquith and other Liberals. Knowing full well that the House of Lords still could veto bills with total impunity, and in so doing, completely disregard the will of the electorate, Asquith began to pressure King Edward VII to use his royal perogative to create new peers if need be, to pass the Government's legislation. Edward was very uneasy about the prospect of flooding the House of Lords with newcomers just to pass a Budget, especially since the election results were so inconclusive. However, he died just three months after the General Election, and his son, George V, became King.

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