1909-4-29 People's Budget

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1909-4-29 David Lloyd George's People's Budget & British Parliament - HiPo > .

On 29 April 1909 the People’s Budget was introduced to the British Parliament by David Lloyd George.

David Lloyd George, the Chancellor of the Exchequer, introduced the People’s Budget to address social inequality and poverty by redistributing wealth through taxation and welfare reforms. It proposed higher income taxes for wealthy individuals alongside higher taxes on land and inheritance. These measures were intended to fund new social welfare programs that included pensions for the elderly, unemployment insurance, and healthcare reforms.

The People’s Budget was inspired in part by the rise of the Labour Party and the influence of progressive intellectuals and activists. The economist John Maynard Keynes also advocated for government intervention to address economic inequality as a way to stimulate economic growth.

It passed the House of Commons in 1909 but was blocked by the House of Lords for a year and became law in April 1910. The People’s Budget faced fierce opposition in the House of Lords, which was dominated by wealthy landowners and aristocrats. The Lords rejected the budget, leading to a showdown with the elected House of Commons, which supported the budget. The crisis ultimately led to a constitutional reform known as the Parliament Act of 1911, which significantly curtailed the power of the House of Lords.

Despite the initial opposition to the People’s Budget, many of its proposals eventually became law (April 1910). It laid the groundwork for future social reforms in Britain, including the establishment of the welfare state under subsequent Liberal and Labour governments of the 20th century. The People’s Budget also had a lasting impact on the development of modern taxation and fiscal policy, shaping the debate over economic inequality and social justice for generations to come.