Labour Party (Britain)

The Labour Party, often referred to as Labour, is a political party in the United Kingdom that sits on the centre-left of the political spectrum. The party has been described as an alliance of social democrats, democratic socialists and trade unionists. It is one of the two dominant political parties in the United Kingdom; the other being the Conservative Party. Labour has been led by Keir Starmer since 2020, who became Prime Minister of the United Kingdom following the 2024 general election. To date, there have been 12 Labour governments and seven different Labour Prime Ministers – MacDonald, Attlee, Wilson, Callaghan, Blair, Brown and Starmer.

The Labour Party was founded in 1900, having emerged from the trade union movement and socialist parties of the 19th century. It was electorally weak before the First World War, but in the early 1920s overtook the Liberal Party to become the main opposition to the Conservative Party, and briefly formed a minority government under Ramsay MacDonald in 1924. In 1929, Labour for the first time became the largest party in the House of Commons with 287 seats, but fell short of a majority, forming another minority government. In 1931, in response to the Great Depression, MacDonald formed a new government with Conservative and Liberal support, which led to his expulsion from the party. Labour was soundly defeated by his coalition in the 1931 election, winning only 52 seats, but began to recover in 1935, with 154 seats.

During the Second World War, Labour served in the wartime coalition, after which it won a majority in the 1945 election. Clement Attlee's government enacted extensive nationalisation and established the modern welfare state and National Health Service before losing power in 1951. Under Harold Wilson and James Callaghan, Labour again governed from 1964 to 1970 and from 1974 to 1979. The party then entered a period of intense internal division which ended in the defeat of its left wing by the mid-1980s. After electoral defeats to the Conservatives in 1987 and 1992, Tony Blair took the party to the political centre as part of his New Labour project, which governed under Blair and then Gordon Brown from 1997 to 2010. After further electoral defeats in the 2010s, Keir Starmer moved Labour to the political centre since becoming its leader in 2020.

The party includes semi-autonomous London, Scottish, Welsh and Northern Irish branches. Labour is the largest party in the Senedd (Welsh Parliament), and the only party in the current Welsh government.

History

Origins to 1890s

The origins of what became the Labour Party emerged in the late 19th century. It represented the interests of the labour unions and more generally the growing urban working class. Hundreds of thousands of workers had recently gained voting rights by laws passed in 1867 and 1884. Many different trade unions flourished in the industrial districts. Their leaders used the Methodist revival tradition to find ways to rally the membership. Several small socialist organisations formed and wanted power based on the working class; the most influential was the Fabian Society, which was made up of middle class reformers. Keir Hardie worked for cooperation among the unions and left-wing groups such as his small Independent Labour Party (ILP).

Labour Representation Committee (1900–1906)

The Labour Party was formed by unions and left-wing groups to create a distinct political voice for the working class in Britain. In 1900 the Trades Union Congress (TUC), an umbrella body for most unions, sponsored a national conference to unite into a single party that would sponsor candidates for the House of Commons. The conference created the Labour Representation Committee (LRC), as a coalition of separate groups with Ramsay MacDonald as secretary. The fearsome issue for labour was the 1901 Taff Vale legal decision which made most strikes illegal; the urgent goal was to get Parliament to reverse it. The LRC cut a secret deal with the Liberal Party: they would not compete against each other in the 1906 general election. Voters gave the Liberals a landslide with 397 seats out of 664; the new LRC won 29 seats. The LRC renamed itself "The Labour Party", with veteran MP Keir Hardie narrowly winning the role of leader of the Parliamentary Labour Party (PLP).

Early years (1906–1923)

The Labour Party's first national conference in Belfast in 1907 helped shape many of its key policies. Never fully resolved was the puzzle of where the final decisions ought to lie—in the annual conference? the Parliamentary Labour Party (PLP)? The local chapters? The Trade Union Congress (which brought together the heads of most unions)? The conference created a "conscience clause" allowing diversity of opinions rather than a rigid orthodoxy. Irish politics proved to be so different that the Party simply quit Ireland and worked only in England, Scotland and Wales. In 1908–1910 the Party supported the momentous and largely successful Liberal battles in favour of a welfare state and against the Unionist/Conservative Party and against the veto power of the House of Lords. Growth continued, with 42 Labour MPs elected to the House of Commons in the December 1910 general election. During World War I, the party experienced internal divisions over support for the war effort, but also saw one of its top leaders Arthur Henderson, serve in the powerful war cabinet.

After the war, the party focused on building a strong constituency-based support network and adopted a comprehensive statement of policies titled "Labour and the New Social Order". In 1918, Clause IV was added to Labour's constitution, committing the party to work towards common ownership of the means of production, distribution, and exchange. Socialism was vaguely promised, but there was no effort made to draw up detailed plans on what that would mean or how it could be accomplished.

The Representation of the People Act 1918 greatly expanded the electorate, enfranchising all men and most women. The party concentrated its appeal on the new electorate with considerable success among working men, but far less success among women. As the Liberal Party collapsed, Labour became the official opposition to the Conservative government. Its support for the war effort demonstrated that the Labour Party was a patriotic and moderate force that solved problems and did not threaten class warfare.

Labour forms a government (1923–1924)

The 1923 election was a pivotal achievement with the formation of the first Labour government. The Conservatives called for high tariffs. Labour and Liberals both wanted free trade. Labour leader Ramsay MacDonald formed a minority government with Liberal support that lasted 10 months. The only domestic achievement was the Wheatley Housing Act, which expanded the large-scale public housing program that started in 1919 with support from all three major parties. MacDonald was much more successful in foreign policy. He helped end the impasse over German payment of reparations by enlisting Washington to launch the Dawes Plan. Much more controversial was his decision to recognise the Soviet Union. That ignited an anti-Communist backlash that exploded four days before the 1924 election in the fake Zinoviev Letter in which Kremlin supposedly called for revolutionary uprising by British workers. The 1924 election saw the Conservatives return to power, benefiting from the Zinoviev letter and the continuing collapse of the Liberal vote. The Labour share of the popular vote went up, but it lost seats. Above all the moderation of the Macdonald government put to rest the lingering fears that a Labour victory would produce a violent class war.

The failed general strike (1926–1929)

In 1925–26, coal sales fell and the mining companies demanded an increase in hours and a cut in wages. The miners were totally opposed and planned a strike. The TUC coalition of unions decided it would support the miners by a nationwide general strike that would paralyse most of the national economy. A strike was postponed when the Conservative government offered a subsidy for wages, but it also prepared to deal with the threatened general strike. Meanwhile, the TUC failed to make preparations. It ignored the Labour Party in and out of Parliament and in turn party leaders opposed a national strike. The 1926 general strike failed after 9 days as the government plan devised by Winston Churchill proved highly effective in keeping the economy open while minimising violence. In the long run, however, the episode tended to strengthen working class support for Labour, and it gained in the 1929 general election, forming a second government with Liberal help.

Second Labour Ministry in 1929 and failures in 1930s

Once again with Liberal help, MacDonald became prime minister following the successful 1929 election. There were some promising achievements in foreign policy, notably the Young Plan that seemed to resolve the issue of German reparations, and the London Naval Treaty of 1930 that limited submarine construction. Some minor legislation was passed, notably a noncontroversial expansion of new public housing. Overnight in October 1929 the world economy plunged into the Great Depression, and no party had an answer as tax revenue plunged, unemployment doubled to 2.5 million (in late 1930), prices fell, and government spending on unemployment benefits soared. Conditions became much worse in 1931 as the banks became unable to loan the government enough to cover the growing deficit. In an era before Keynesian economics, the strong consensus among experts was for the government to balance its budget.

Spending was cut again and again but MacDonald and his Chancellor of the Exchequer Philip Snowden argued that the only way to get an emergency loan from New York banks was to cut unemployment benefits by 10%. They pointed out that cost of food was down 15% and overall prices were down 10%. But in the cabinet most Labour members were vehemently opposed—they demanded new taxes on the rich instead. MacDonald gave up and on 23 August went to King George V and resigned the government. Unexpectedly the monarch insisted that the only patriotic solution was for MacDonald to stay and form an all-party "national government" with the Conservatives, which he did the next day. The Labour Party felt betrayed and expelled MacDonald and Snowden.
The new National Government, 1931–1935 kept Macdonald and Snowden and two others, replacing the rest of the Laborites with Conservatives. The 1931 election took place on 27 October. Labour had 6.3 million votes (31 per cent), down from 8.0 million and 37 per cent in 1929. Nevertheless, it was reduced to a helpless minority of only 52 members, chiefly from coal mining districts. The old leadership was gone. One bright note came in 1934 when Herbert Morrison led Labour to take control of the London County Council for the first time ever.

In the 1935 election, Labour recovered to 8.0 million votes (38 per cent), and Clement Attlee became Minority Leader. The Party now had 154 seats but had minimal influence in Parliament. At the local level union leaders, led by Ernest Bevin, successfully defeated Communist infiltration. In foreign policy a strong pacifist element made it slow to support the government's rearmament program. As the threat from Nazi Germany escalated, the Party gradually abandoned its pacifist stance and came to support re-armament, largely due to the efforts of Bevin and Hugh Dalton. By 1937 they had persuaded the Party to oppose Neville Chamberlain's policy of appeasement of Nazi Germany and Fascist Italy. However, as late as April 1939 the Party strongly opposed conscription for the Army.

Wartime coalition (1940–1945)

The party returned to power in May 1940, with about a third of the seats in the wartime coalition government under Churchill. Attlee was given a new position as Deputy Prime Minister. He was in charge of the cabinet when Churchill was absent, and handled domestic affairs, working closely with Bevin as Minister of Labour. The war set in motion profound demands for reform. This mood was epitomised in the Beveridge Report of 1942, by the Liberal economist William Beveridge. The ''Report'' assumed that the maintenance of full employment would be the aim of post-war governments, and that this would provide the basis for the welfare state. Immediately upon its release, it sold hundreds of thousands of copies. All major parties committed themselves to fulfilling this aim, but the Labour Party was seen by the electorate as the party most likely to follow it through.

Attlee government (1945–1951)

With the victory in Europe, the coalition broke up in May 1945. The 1945 general election gave Labour a landslide victory, as they won 12 million votes (50% of the total) and 393 seats. The Labour government proved the most radical in British history. It presided over a policy of nationalising major industries and utilities including the Bank of England, coal mining, the steel industry, electricity, gas and inland transport (including railways, road haulage and canals). It developed and implemented the "cradle to grave" welfare state. It created the National Health Service (NHS), which gave publicly funded medical treatment for all.

Nationalisation primarily affected weak and poorly managed industries, opening the hope that centralised planning would reverse the decline. Iron and steel, however, were already well-run and nationalisation was denounced and later reversed by the Conservatives.

The economy was precarious during the age of austerity, as wartime restrictions and rationing continued, and the wartime bombing damage was slowly being rebuilt at great cost. The Treasury depended heavily on American money, especially the 1946 loan of $3.75 billion at a low 2% interest rate, and the gift of $2.694 billion in Marshall Plan funds. Canada also provided gifts and $1.25 billion in loans.

The government began the process of dismantling the British Empire, starting with independence to India and Pakistan in 1947, followed by Burma (Myanmar) and Ceylon (Sri Lanka) the following year. It relinquished its control over Palestine to the United Nations in 1948. Elsewhere independence movements were much weaker and London's policy was to keep the Empire in business.

Under Ernest Bevin's leadership, London pushed Washington into an anti-Communist coalition that launched the Cold War in 1947 and established the NATO military alliance against the USSR in 1949. Furthermore, independent of Washington London committed large sums to developing a secret nuclear weapons programme.

In the 1951 general election, Labour narrowly lost to Churchill's Conservatives, despite receiving the larger share of the popular vote. Its 13.9 million vote total was the highest ever. Most of its innovation were accepted by the Conservatives and Liberals and became part of the "post-war consensus" that lasted until the Thatcher era of the 1980s.

Internal feuds (1951–1964)

Labour spent 13 years in opposition. It suffered an ideological split, between the left-wing followers of Aneurin Bevan (known as Bevanites) and the right-wing following Hugh Gaitskell (known as Gaitskellites). The economy recovered as Conservatives hung together and chanted, "You Never Had It So Good.". The ageing Attlee contested the general election in 1955, which saw Labour lose ground; he retired and was replaced by Gaitskell. Internal squabbling now focused on the issues of nuclear disarmament, Britain's entry into the European Economic Community (EEC), and Clause IV of the Labour Party Constitution, with its commitment to nationalisation. Gaitskell led Labour to a third consecutive defeat at the 1959 general election despite the party appearing more united than it had been for some time. Gaitskell responded by attempting to remove Clause IV (the nationalisation clause) from the party constitution, but this was unsuccessful. Gaitskell died suddenly in 1963, and cleared the way for Harold Wilson to lead the party.

Wilson as leader (1964–1974)

A downturn in the economy and a series of scandals in the early 1960s had engulfed the Conservative government by 1963. The Labour Party returned to government with a 4-seat majority under Wilson in the 1964 general election but a landslide increased its majority to 96 in the 1966 general election.

Labour was responsible for a number of sweeping social and cultural reforms mostly under the leadership of Home Secretary Roy Jenkins such as the abolition of the death penalty; the legalisation of abortion; loosening restrictions on homosexuality, the abolition of theatre censorship, and legislation to outlaw racial discrimination

The government put heavy emphasis on expanding opportunities through education: Comprehensive education was expanded at the secondary level and the Open University created for adults.

Wilson's first period as Prime Minister coincided with a period of relatively low unemployment and economic prosperity, it was however hindered by significant problems with a large trade deficit which it had inherited from the previous government. The first three years of the government were spent in an ultimately doomed attempt to stave off the continued devaluation of the pound. Labour went on to unexpectedly lose the 1970 general election to the Conservatives under Edward Heath. Labour in opposition kept Wilson as Leader. The 1970s proved a difficult time to be in government for both the Conservatives and Labour due to the 1973 oil crisis, which caused high inflation and a global recession. The Labour Party was returned to power again under Wilson a few days after the February 1974 general election, forming a minority government with the support of the Ulster Unionists. In a bid to gain a majority, Prime Minister Wilson soon called an election for October 1974. Labour won a slim majority of three, gaining 18 seats taking its total to 319.

Majority to minority (1974–1979)

In March 1974 Wilson was appointed prime minister for a second time; he called a snap election in October 1974, which gave Labour a small majority. During his second term as prime minister, Wilson oversaw the referendum that confirmed the UK's membership of the European Communities.

When Wilson suddenly announced his retirement in March 1976, Callaghan defeated five other candidates to be elected Leader of the Labour Party; he was appointed prime minister on 5 April 1976. By now Labour had lost its narrow majority. To stay in power Callaghan made a confidence and supply agreement with the Liberal Party. While this initially proved stable, it could not survive in the face of major industrial disputes and widespread strikes in the 1978–79 "Winter of Discontent", as well as the defeat of the referendum on devolution for Scotland. Minor parties joined the Conservatives to pass a motion of no-confidence in Callaghan on 28 March 1979. Callaghan led Labour to defeat at the 1979 election and was replaced by Conservative Margaret Thatcher. The 1979 defeat marked the beginning of 18 years in opposition for the Labour Party, the longest in its history. According to historian Kenneth O. Morgan, the fall of Callaghan meant the passing of an old obsolete system, as well as the end of corporatism, Keynesian spending programmes, subsidised welfare payments, and labour union power.

Thatcherism and Labour's civil war (1979–1992)

Following 1979 the Labour Party found itself overwhelmed by the Conservative government led by a highly aggressive Margaret Thatcher. From the right she largely rejected the Post-war consensus on economic and social policies that had bipartisan support since the 1950s. At first Thatcher's economic reforms were doing poorly. Argentina's invasion of a British possession in the Falklands War in Spring 1982 transformed British politics. Thatcher's aggressive reaction produced a smashing victory and national elation, guaranteeing Conservatives a massive landslide victory in the 1983 general election. Thatcher's successful attacks on labour unions in 1984–1985 further weakened the Labour base. It took a decade for Labour to recover.

Labour's inward turn flared into a civil war between left and right. The party came under the control of young middle-class left-wing activists in the local constituencies. The left was led by Michael Foot and Tony Benn. They were keen on radical proposals as presented in the 1983 manifesto entitled "The New Hope for Britain". It called for extensive nationalisation of industry, with heavily centralised economic planning, and many additional controls on business. It demanded unilateral nuclear disarmament and withdrawal from the European Community. Labour's manifesto was a repudiation of the Post-war consensus from the left. It alienated so many moderates, skilled workers and the general public that it was ridiculed as the " longest suicide note in history." Some top leaders quit the Labour Party and formed a new Social Democratic Party, but it could not survive. After Labour's massive defeat in the 1983 General Election, Neil Kinnock replaced Foot. He defeated the left wing, reversed the highly controversial Manifesto proposals, expelled extremist factions like the Trotskyist Militant tendency, and began a process of modernisation and acceptance of many Thatcherite innovations.

Modernisers take charge (1992–1997)

In November 1990, Thatcher resigned and was succeeded by the less confrontational Thatcherite John Major. Opinion polls had shown Labour comfortably ahead of the Conservatives largely because of Thatcher's introduction of the highly unpopular poll tax, combined with the fact that the economy was sliding into recession. Major replaced the poll tax but Kinnock energised Labour with the theme "It's Time for a Change", after more than a decade of unbroken Conservative rule. The 1992 general election gave Conservatives a victory with a much-reduced majority of 21. It was a deeply disappointing result for Labour. For the first time in over 30 years there was serious doubt among the public and the media as to whether Labour could ever return to government. Kinnock resigned as leader and was succeeded by John Smith.

The damage to the economy on Black Wednesday in September 1992 undermined the Conservative reputation for superior economic competence. By December, Labour had a comfortable lead in the opinion polls. The recession ended in early 1993 and was followed by a sharp fall in unemployment, together with sustained economic growth. Nevertheless, the Labour lead in the polls remained strong. Smith died suddenly in May 1994, and Tony Blair became leader.

Once again the battle resumed between the old guard on the left and the younger "modernisers". The old guard argued that they were regaining strength under Smith's strong leadership. Blair, the leader of the modernisers, warned that the long-term weaknesses had to be reversed. He argued that the party was too locked into a base that was shrinking, since it was based on the working-class, on trade unions and on residents of subsidised council housing. Blair said that the rapidly growing middle class was largely ignored, as well as more ambitious working-class families. He argued that they aspired to become middle-class and accepted the Conservative argument that traditional Labour was holding ambitious people back with higher tax policies. To present a fresh face and new policies to the electorate, New Labour needed more than fresh leaders; it had to jettison outdated policies, argued the modernisers. Calling on the slogan, "One Member, One Vote" Blair defeated the union element and ended block voting by leaders of labour unions. Blair and the modernisers called for radical adjustment of Party goals by repealing "Clause IV", the historic commitment to nationalisation of industry. This was achieved in 1995.

New Labour (1994–2010)

Blair continued to move the party further to the centre, abandoning the largely symbolic Clause Four at the 1995 mini-conference in a strategy to increase the party's appeal to "middle England". The political philosophy of New Labour was influenced by the party's development of Anthony Giddens' Third Way which attempted to provide a synthesis between capitalism and socialism.

New Labour was first termed as an alternative branding for the Labour Party, dating from a conference slogan first used by the Labour Party in 1994, which was later seen in a draft manifesto published by the party in 1996, called '' New Labour, New Life For Britain''. It was a continuation of the trend that had begun under the leadership of Neil Kinnock. New Labour as a name has no official status, but remains in common use to distinguish modernisers from those holding to more traditional positions, normally referred to as "Old Labour".

The Labour Party won the 1997 general election in a landslide victory with a parliamentary majority of 179; it was the largest ever Labour majority, and at the time the largest swing to a political party achieved since 1945. Over the next decade, a wide range of progressive social reforms were enacted, with millions lifted out of poverty during Labour's time in office largely as a result of various tax and benefit reforms.

Among the early acts of Blair's government were the establishment of the national minimum wage, the devolution of power to Scotland, Wales and Northern Ireland, major changes to the regulation of the banking system and the re-creation of a citywide government body for London, the Greater London Authority, with its own elected-Mayor. Combined with a Conservative opposition that had yet to organise effectively under William Hague, and the continuing popularity of Blair, Labour went on to win the 2001 election with a similar majority, dubbed the "quiet landslide" by the media. In 2003 Labour introduced tax credits, government top-ups to the pay of low-wage workers.

A perceived turning point was when Blair controversially allied himself with US President George W. Bush in supporting the Iraq War, which caused him to lose much of his political support. The UN Secretary-General, among many, considered the war illegal and a violation of the UN Charter. The Iraq War was deeply unpopular in most western countries, with Western governments divided in their support and under pressure from worldwide popular protests. The decisions that led up to the Iraq war and its subsequent conduct were the subject of the Iraq Inquiry

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