Liberal Party (UK) - The Splits Over The National Government

The Splits Over The National Government

In 1931 MacDonald's government fell apart under the Great Depression, and the Liberals agreed to join his National Government, dominated by the Conservatives. Lloyd George himself was ill and did not actually join. Soon, however, the Liberals faced another divisive crisis when a National Government was proposed to fight the 1931 general election with a mandate for tariffs. From the outside, Lloyd George called for the party to abandon the government completely in defence of free trade, but only a few MPs and candidates followed. Another group under Sir John Simon then emerged, who were prepared to continue their support for the government and take the Liberal places in the Cabinet if there were resignations. The third group under Sir Herbert Samuel pressed for the parties in government to fight the election on separate platforms. In doing so the bulk of Liberals remained supporting the government, but two distinct Liberal groups had emerged within this bulk – the Liberal Nationals (officially the "National Liberals" after 1947) led by Simon, also known as "Simonites", and the "Samuelites" or "official Liberals", led by Samuel who remained as the official party. Both groups secured about 34 MPs but proceeded to diverge even further after the election, with the Liberal Nationals remaining supporters of the government throughout its life. There were to be a succession of discussions about them rejoining the Liberals, but these usually foundered on the issues of free trade and continued support for the National Government. The one significant reunification came in 1946 when the Liberal and Liberal National party organisations in London merged.

The official Liberals found themselves a tiny minority within a government committed to protectionism. Slowly they found this issue to be one they could not support. In early 1932 it was agreed to suspend the principle of collective responsibility to allow the Liberals to oppose the introduction of tariffs. Later in 1932 the Liberals resigned their ministerial posts over the introduction of the Ottawa Agreement on Imperial Preference. However, they remained sitting on the government benches supporting it in Parliament, though in the country local Liberal activists bitterly opposed the government. Finally in late 1933 the Liberals crossed the floor of the House of Commons and went into complete opposition. By this point their number of MPs was severely depleted. In the 1935 general election, just 17 Liberal MPs were elected, along with Lloyd George and three followers as "independent Liberals". Immediately after the election the two groups reunited, though Lloyd George declined to play much of a formal role in his old party. Over the next ten years there would be further defections as MPs deserted to either the Liberal Nationals or Labour. Yet there were a few recruits, such as Clement Davies, who had deserted to the National Liberals in 1931 but now returned to the party during the World War II and who would lead it after the war.