Great Britain: World War II and the Welfare State

World War II and the Welfare State

On Sept. 1, 1939, Germany attacked Poland. Great Britain and France declared war on Germany on Sept. 3, and all the dominions of the Commonwealth except Ireland followed suit (see World War II). Chamberlain broadened his cabinet to include Labour representatives, but after German victories in Scandinavia he resigned (May, 1940) and was replaced by Winston S. Churchill. France fell in June, 1940, but the heroic rescue of a substantial part of the British army from Dunkirk (May–June) enabled Britain, now virtually alone, to remain in the war.

The nation withstood intensive bombardment (see Battle of Britain), but ultimately the Royal Air Force was able to drive off the Luftwaffe. Extensive damage was sustained, and great urban areas, including large sections of London, were devastated. The British people rose to a supreme war effort; American aid (see lend-lease) provided vital help. In 1941, Great Britain gained two allies when Germany invaded the USSR (June) and the United States entered the war following the Japanese attack on Pearl Harbor (Dec. 7). Britain declared war on Japan on Dec. 8.

The wartime alliance of Great Britain, the USSR, and the United States led to the formation of the United Nations and brought about the defeat of Germany (May, 1945) and Japan (Sept., 1945). The British economy suffered severely from the war. Manpower losses had been severe, including about 420,000 dead; large urban areas had to be rebuilt, and the industrial plant needed reconstruction and modernization. Leadership in world trade, shipping, and banking had passed to the United States, and overseas investments had been largely liquidated to pay the cost of the world wars. This was a serious blow to the British economy because the income from these activities had previously served to offset the import-export deficit.

In 1945, the first general elections in ten years were held (they had been postponed because of the war) and Clement Attlee and the Labour party were swept into power. Austere wartime economic controls were continued, and in 1946 the United States extended a large loan. The United States made further assistance available in 1948 through the Marshall Plan. In 1949 the pound was devalued (in terms of U.S. dollars, from $4.03 to $2.80) to make British exports more competitive.

The Labour government pursued from the start a vigorous program of nationalization of industry and extension of social services. The Bank of England, the coal industry, communications facilities, civil aviation, electricity, and internal transport were nationalized, and in 1948 a vast program of socialized medicine was instituted (many of these programs followed the recommendations of wartime commissions). Also in 1948, Labour began the nationalization of the steel industry, but the law did not become effective until 1951, after Churchill and the Conservatives had returned to office. The Conservatives denationalized the trucking industry and all but one of the steel companies and ended direct economic controls, but they retained Labour's social reforms. Elizabeth II succeeded George VI in 1952.

In postwar foreign affairs Great Britain's loss of power was also evident. Britain had undertaken to help Greece and Turkey resist Communist subversion, but the financial burden proved too great, and the task was assumed (1947) by the United States. The British Empire underwent rapid transformation. British India was partitioned (1947) into two self-governing states, India and Pakistan. In Palestine, unable to maintain peace between Arabs and Jews, Britain turned its mandate over to the United Nations. Groundwork was laid for the independence of many other colonies; like India and Pakistan, most of them remained in the Commonwealth after independence. Great Britain joined the North Atlantic Treaty Organization (1949) and fought on the United Nations' side in the Korean War (1950–53).

The Conservative governments of Churchill and his successor, Anthony Eden (1955), were beset by numerous difficulties in foreign affairs, including the nationalization (1951) of British petroleum fields and refineries in Iran, the Mau Mau uprising in Kenya (1952–56), turmoil in Cyprus (1954–59), and the problem of apartheid in South Africa. The nationalization (1956) of the Suez Canal by Egypt touched off a crisis in which Britain, France, and Israel invaded Egypt. Opposition by the United States brought about a halt of the invasion and withdrawal of the troops.

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