Gladstonian Liberalism
Encyclopedia
Gladstonian Liberalism is a political doctrine named after the British
Victorian
Prime Minister
and leader of the Liberal Party
, William Ewart Gladstone
. Gladstonian Liberalism consisted of limited government expenditure and low taxation whilst making sure government had balanced budgets. Gladstonian Liberalism also emphasised free trade
, little government intervention in the economy and equality of opportunity through institutional reform. It is referred to as Classical Liberalism
or Laissez Faire liberalism in the UK.
Gladstonian financial rectitude had a partial lasting impact on British politics and the historian John Vincent
contends that under Lord Salisbury
's premiership, he "left Britain's low tax, low cost, low growth economy, with its Gladstonian finance and its free trade dogmas, and no conscript army, exactly as he had found it...Salisbury reigned, but Gladstone ruled."
However in the early twentieth-century the Liberal Party began to move away from Gladstonian Liberalism and instead developed new policies based on New Liberalism
(or what Gladstone called "constructionism"). The Liberal government of 1906-1914 is noted for its social reforms and these included old age pensions and National Insurance
. Taxation and public expenditure was also increased and New Liberal ideas led to David Lloyd George
's People's Budget
of 1909-10.
The first Labour
Chancellor of the Exchequer
, Philip Snowden
, had Gladstonian Liberal economic views. This was demonstrated in his first Budget
in 1924; government expenditure was curtailed, taxes were lowered and duties
on tea, coffee, cocoa and sugar were reduced. A. J. P. Taylor
has written that this budget "would have delighted the heart of Gladstone." Ernest Bevin
remarked upon becoming Minister of Labour in 1940: "They say that Gladstone was at the Treasury
from 1860 to 1930".
United Kingdom
The United Kingdom of Great Britain and Northern IrelandIn the United Kingdom and Dependencies, other languages have been officially recognised as legitimate autochthonous languages under the European Charter for Regional or Minority Languages...
Victorian
Victorian era
The Victorian era of British history was the period of Queen Victoria's reign from 20 June 1837 until her death on 22 January 1901. It was a long period of peace, prosperity, refined sensibilities and national self-confidence...
Prime Minister
Prime Minister of the United Kingdom
The Prime Minister of the United Kingdom of Great Britain and Northern Ireland is the Head of Her Majesty's Government in the United Kingdom. The Prime Minister and Cabinet are collectively accountable for their policies and actions to the Sovereign, to Parliament, to their political party and...
and leader of the Liberal Party
Liberal Party (UK)
The Liberal Party was one of the two major political parties of the United Kingdom during the 19th and early 20th centuries. It was a third party of negligible importance throughout the latter half of the 20th Century, before merging with the Social Democratic Party in 1988 to form the present day...
, William Ewart Gladstone
William Ewart Gladstone
William Ewart Gladstone FRS FSS was a British Liberal statesman. In a career lasting over sixty years, he served as Prime Minister four separate times , more than any other person. Gladstone was also Britain's oldest Prime Minister, 84 years old when he resigned for the last time...
. Gladstonian Liberalism consisted of limited government expenditure and low taxation whilst making sure government had balanced budgets. Gladstonian Liberalism also emphasised free trade
Free trade
Under a free trade policy, prices emerge from supply and demand, and are the sole determinant of resource allocation. 'Free' trade differs from other forms of trade policy where the allocation of goods and services among trading countries are determined by price strategies that may differ from...
, little government intervention in the economy and equality of opportunity through institutional reform. It is referred to as Classical Liberalism
Classical liberalism
Classical liberalism is the philosophy committed to the ideal of limited government, constitutionalism, rule of law, due process, and liberty of individuals including freedom of religion, speech, press, assembly, and free markets....
or Laissez Faire liberalism in the UK.
Gladstonian financial rectitude had a partial lasting impact on British politics and the historian John Vincent
John Vincent (historian)
John Russell Vincent is a British historian and a former Fellow of Peterhouse, Cambridge. He was Professor of Modern History, and later History, at the University of Bristol from 1970 until his retirement when he became Visiting Professor at the University of East Anglia...
contends that under Lord Salisbury
Robert Gascoyne-Cecil, 3rd Marquess of Salisbury
Robert Arthur Talbot Gascoyne-Cecil, 3rd Marquess of Salisbury, KG, GCVO, PC , styled Lord Robert Cecil before 1865 and Viscount Cranborne from June 1865 until April 1868, was a British Conservative statesman and thrice Prime Minister, serving for a total of over 13 years...
's premiership, he "left Britain's low tax, low cost, low growth economy, with its Gladstonian finance and its free trade dogmas, and no conscript army, exactly as he had found it...Salisbury reigned, but Gladstone ruled."
However in the early twentieth-century the Liberal Party began to move away from Gladstonian Liberalism and instead developed new policies based on New Liberalism
Social liberalism
Social liberalism is the belief that liberalism should include social justice. It differs from classical liberalism in that it believes the legitimate role of the state includes addressing economic and social issues such as unemployment, health care, and education while simultaneously expanding...
(or what Gladstone called "constructionism"). The Liberal government of 1906-1914 is noted for its social reforms and these included old age pensions and National Insurance
National Insurance Act 1911
The National Insurance Act 1911 is an Act of Parliament of the United Kingdom. The Act is often regarded as one of the foundations of modern social welfare in the United Kingdom and forms part of the wider social welfare reforms of the Liberal Government of 1906-1914...
. Taxation and public expenditure was also increased and New Liberal ideas led to David Lloyd George
David Lloyd George
David Lloyd George, 1st Earl Lloyd-George of Dwyfor OM, PC was a British Liberal politician and statesman...
's People's Budget
People's Budget
The 1909 People's Budget was a product of then British Prime Minister H. H. Asquith's Liberal government, introducing many unprecedented taxes on the wealthy and radical social welfare programmes to Britain's political life...
of 1909-10.
The first Labour
Labour Party (UK)
The Labour Party is a centre-left democratic socialist party in the United Kingdom. It surpassed the Liberal Party in general elections during the early 1920s, forming minority governments under Ramsay MacDonald in 1924 and 1929-1931. The party was in a wartime coalition from 1940 to 1945, after...
Chancellor of the Exchequer
Chancellor of the Exchequer
The Chancellor of the Exchequer is the title held by the British Cabinet minister who is responsible for all economic and financial matters. Often simply called the Chancellor, the office-holder controls HM Treasury and plays a role akin to the posts of Minister of Finance or Secretary of the...
, Philip Snowden
Philip Snowden, 1st Viscount Snowden
Philip Snowden, 1st Viscount Snowden PC was a British politician and the first Labour Chancellor of the Exchequer, a position he held in 1924 and again between 1929 and 1931.-Early life: 1864–1906:...
, had Gladstonian Liberal economic views. This was demonstrated in his first Budget
Government budget
A government budget is a legal document that is often passed by the legislature, and approved by the chief executive-or president. For example, only certain types of revenue may be imposed and collected...
in 1924; government expenditure was curtailed, taxes were lowered and duties
Duty (economics)
In economics, a duty is a kind of tax, often associated with customs, a payment due to the revenue of a state, levied by force of law. It is a tax on certain items purchased abroad...
on tea, coffee, cocoa and sugar were reduced. A. J. P. Taylor
A. J. P. Taylor
Alan John Percivale Taylor, FBA was a British historian of the 20th century and renowned academic who became well known to millions through his popular television lectures.-Early life:...
has written that this budget "would have delighted the heart of Gladstone." Ernest Bevin
Ernest Bevin
Ernest Bevin was a British trade union leader and Labour politician. He served as general secretary of the powerful Transport and General Workers' Union from 1922 to 1945, as Minister of Labour in the war-time coalition government, and as Foreign Secretary in the post-war Labour Government.-Early...
remarked upon becoming Minister of Labour in 1940: "They say that Gladstone was at the Treasury
HM Treasury
HM Treasury, in full Her Majesty's Treasury, informally The Treasury, is the United Kingdom government department responsible for developing and executing the British government's public finance policy and economic policy...
from 1860 to 1930".