Why did the Labour Government nationalise

key industries?

The nationalisation of industry was a corner stone of socialist thinking.

In some ways Attlee’s government saw itself as destined to introduce such measures.

Nationalisation is when industries or resources are put under state control or ownership.

In 1918 nationalisation has become a central objective for the Labour Party.

In ‘Let us Face the Future’ the electorate were offered a programme of industrial change which would gradually reorganise the nation’s resources ‘in the service of the people’.

Attlee, following his landslide victory was the first prime minister to have the opportunity to put it into effect

Alongside the socialist theory of nationalisation, Labour also had a strong case for nationalisation on economic grounds.

The economic arguments Many of Britain’s

major industries had had long periods of stagnation which had led to inefficiency and unemployment in the 1930s.

E.g. the coal mining industry.

In the coal industry private ownership had meant hostile labour relations, lack of investment and low productivity.

Nationalisation could:

Rejuvenate the industry Improve worker-management relationsBring greater investment in modern

machinery and better safetyEliminate wasteful competition

How was the programme of nationalisation implemented

1945-51?

Labour had no ‘blueprint’ so the Public Corporation framework was adopted.

The approach was championed by Herbert Morrison, the Lord President of the Council, and was accepted by the Conservative Opposition with minimum protest.

Nationalisation of a wide range of industries began to take place.

The model of nationalisationPrivate Firms

taken over by the Government

Compensation paid

Government Minister appoints

a board of directors to run

industry

Affairs openly debated in Parliament

Profits used for prices to

consumers and/or

investments in machines

Annual Accounts have to be published