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How well did Labour handle economic issues 1945 - 51? (1945 (Cost of war,…
How well did Labour handle economic issues 1945 - 51?
1945
Cost of war
1/2 million houses, 1/3 prewar shipping needed replacing
£3,500 national debt
Income tax raised to 50%
1946 - 1947
1947 winter
90% of coal couldn't reach the roads
Unemployment rose from 400,000 to 2.5 million in one month
Shinwell did not act fast enough
Stringent rationing and Dalton was forced to resign
1948 - 1949
Cripps wanted industry then capital then consumer needs
Widespread austerity
Received $3000m from Marshall's Plan and provided breathing space and devalued the pound
1950 - 1951
Overseas spending was high
Korean war was costly
Reduced welfare provision
Spending rose by 14%