Q How Beneficial was Nationalisation in the Period 1945 51 to the British Economy and British
Anna Melton 15/12/03 Historical Skills Essay 1 Q: How Beneficial was Nationalisation in the Period 1945-51 to the British Economy and British People? July 1945 saw the Labour Party sweep to power after achieving a considerable victory against the Conservatives, despite the positive support Winston Churchill had received during the Second World War. ... However despite this great influx of reforms, this period remained one of austerity as the full impact of the War became evident on Britain’s industry and economy. There has been a great amount of debate amongst historian’s and other interested parties as to whether Attlee’s Labour government brought marked improvement to post war Britain or contributed to further hardships, this essay will attempt to analyse one of Labour’s primary reforms, the Nationalisation of much of Britain’s industry, and answer how beneficial this policy proved. By 1945 Britain found herself in a considerably weakened position, the War had cost an enormous amount and also meant a loss in the export markets whom she had relied heavily on. British exports in 1945 stood at a third of their already low 1939 level and the ensuing spell of legislation covered three main areas, nationalisation and economic planning, social welfare and trade union law. ... Arguably the largest reforms in the Labour period include the founding of the National Health Service in 1946, the introduction of National Insurance Act and the Nationalisation of many industries such as Coal, Electricity and the Railways under the supervision of Herbert Morrison. Many of the mechanisms of state planning and control had already been set up during the war, the object was to promote a healthy economy by increasing Britains gross domestic production and export potential via four civil service committees; manpower, materials, balance of payments and capital investment. ... The nationalisation did not affect operations within the bank but arguably highlighted Labours commitment to controlling the economy for the benefit of the country, whereas private investments had often proved a hindrance to progress and modernisation. ... By 1945 both had become dilapidated after being starved of investment for many years, they were unprofitable and run by many companies paying poor wages with bad safety records. Even many mine owners recognised some form of centralised control was necessary and public opinion was in favour of nationalisation here. ... Labours programme of nationalisation was extensive and bold; the coal, gas and electricity industries had been taken under state control within the first two years of their election.