Britain in Transition, 1906–1957 – only) The 'Hungry Thirties', 1929–1939…

The idea

The Great Depression triggered a severe financial crisis in Britain, characterised by collapsing exports and soaring unemployment. In response, economic policy shifted dramatically. The National Government abandoned the Gold Standard in 1931, depreciating the pound to make British exports more competitive and allowing interest rates to fall, stimulating a housing boom. Furthermore, the 1932 Import Duties Act introduced tariff reform, ending free trade, while the Ottawa Conference established imperial preference to boost trade within the British Empire. These policies had mixed effects: new industries like motor manufacturing thrived in the Midlands, whereas traditional heavy industries and agriculture in the North and Wales continued to stagnate.

What earns the marks

• Explain the causes and immediate impact of the 1931 financial crisis on the British economy and international trade.
• Analyse the consequences of leaving the Gold Standard, particularly the impact of 'cheap money' on the private housing market.
• Evaluate the effectiveness of tariff reform and imperial preference in protecting British trade and agriculture from foreign competition.
• Contrast the economic fortunes of traditional heavy industries with the growth of new consumer industries during the 1930s.

Common mistakes and how to put them right

• Stating that leaving the Gold Standard was a deliberate, planned policy.

  Put it right: It was actually forced upon the government by a severe run on the pound.

• Assuming the Depression affected the whole country equally.

  Put it right: There was a stark regional divide between the relatively prosperous South and the depressed North.

• Confusing tariff reform with free trade.

  Put it right: Tariff reform meant introducing protectionist duties, explicitly ending Britain's long-standing commitment to free trade.

Exam tips

• Use the concept of 'cheap money' (low interest rates) to explain the uneven economic recovery and the boom in private house building.
• When discussing imperial preference, explicitly mention the 1932 Ottawa Conference as the key event where these trade agreements were negotiated.
• Provide specific examples of 'old' industries (coal, shipbuilding) versus 'new' industries (chemicals, automobiles) to illustrate regional economic disparities.