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there was an overwhelming feeling of a ‘lost generation’, as perhaps more than 30 per cent of all men aged between twenty and twenty-four in 1914 were killed in the war, and 28 per cent of those aged thirteen to nineteen. Many of those seriously wounded — physically or mentally — never recovered, and certainly never worked again: the sight of a blind or maimed ex-serviceman trying to scrape a living by selling matches or bootlaces in the street, or simply by begging, was commonplace throughout the 1920s and 1930s. Two and a half million men were sufficiently disabled to qualify for a state pension, which was calculated on a harsh sliding scale: those suffering from the loss of two or more limbs, or major facial disfigurement, qualified for a full pension (27s.6d a week); the loss of a whole right arm brought 90 per cent of that; if the arm was intact below the shoulder but had been amputated above the elbow, or the veteran was totally deaf, that netted 70 per cent, falling to fourteen shillings a week if the amputation was below the elbow or knee, or the sight of one eye had been lost. On the assumption that most men were right-handed, the award was a shilling a week less in each category if it was the left arm that was involved, though if ‘only’ two fingers on either hand had been blown away, a man would receive 5s.6d a week. More than that, the war had come to the Home Front, with air raids claiming some 1,400 civilian lives and leaving 3,400 wounded.

      The reminders of the war were material in so many ways. Within months of the Armistice on the eleventh hour of the eleventh day of the eleventh month of 1918, war memorials to commemorate the dead were being built in cities, towns and villages all over Britain, and plaques were being screwed on the walls of railway stations, police stations, depots, schools and factories in honour of ‘the fallen’. On many of them it was difficult to find space to carve the litany of the dead: in Lancashire, for example, the Chorley Pals (which became Y Company of the 11th Battalion, the East Lancashire Regiment) lost 758 officers and men. The architect of Imperial Delhi, Sir Edwin Lutyens, designed a simple concrete altar to those slaughtered in the war to stand in the middle of Whitehall: it would stand like a reproach on an axis that crossed from the Prime Minister’s residence to the War Office. A nameless corpse was selected from those buried as ‘unknown’ near the trench-riddled wastelands of northern France, transported by boat and train in a coffin made from an oak felled at Hampton Court and lowered into a grave just inside the west entrance of Westminster Abbey. Covered with sandbags filled with sand from the Western Front, it was topped with a slab of black Tournai marble from Belgium bearing an inscription that included the words ‘a British warrior unknown by name or rank’. King George V, finding himself — after a slow start — much affected by the notion, attended the funeral service for this poignant representative of Britain’s lost generation on Armistice Day 1920 before unveiling Lutyens’s stark concrete memorial. The ceremony concluded with a haunting rendition of the ‘Last Post’ that seemed to hang in the air.

      Within five days over a million people had visited the grave and left hillocks of flowers at the cenotaph, and from that day forward Armistice Day has been commemorated throughout Britain by a two-minute silence as the eleventh hour strikes, those who fought and survived, and those who remembered, bowing their heads, in their buttonholes a fabric replica of the fragile, ubiquitous Flanders poppy adopted by the British Legion as the symbol of the debt owed to those whose blood seeped into the mud of the Western Front.

      The new decade had a new government: David Lloyd George’s wartime coalition had ended in 1922 when the Conservatives under Andrew Bonar Law withdrew their support, wishing to re-establish the old party system. Only it wasn’t the old system: no longer was there a Conservative/Liberal duopoly alternating in power as it had throughout most of the nineteenth century, up until the First World War. Henceforth the Labour Party, which had only been founded in 1900, would provide the main opposition to the Conservatives. The Liberal Party had split during the war between those who were loyal to the former leader Herbert Asquith — known as ‘Asquithian Liberals’ — and those who grouped around Lloyd George — the ‘National Liberals’.

      After the 1922 election each faction claimed roughly the same number of MPs — between fifty and sixty — but the electoral system, which the Liberals had failed to reform when they had the opportunity, meant that with their support spread thinly across the country and the classes, they were increasingly doomed to be runners-up to Labour in industrial and urban seats, and to the Conservatives in wealthy and rural ones. Labour enjoyed its first taste of government — albeit a brief one — between January and November 1924. On taking power, the Labour Prime Minister Ramsay MacDonald had two objectives. One was to dispose of the Liberal Party, the other to prove that Labour was fit to govern. In both he succeeded, although the Liberal Party’s decline was slow. However, by 1929 although the Liberals polled over five million votes, this translated into only fifty-nine MPs, mainly returned from Celtic fringe constituencies around the edge of Britain. By comparison the Conservatives won 260 seats and Labour 287.

      The electorate that voted in the second Labour government that year had increased since 1918 by almost 30 per cent to nearly twenty-nine million — 91 per cent of the adult population were now eligible to vote, with women given the vote at the same age as men — twenty-one — rather than thirty, as had been the case when women’s suffrage had first been granted in 1918.

      The second Labour government had a small majority and a massive problem: unemployment. The Conservatives had narrowly lost the election campaigning under the slogan ‘Safety First’, copied from a campaign to reduce the number of road accidents. But it seemed that what was needed was less caution, and more action and imagination. The economy was out of balance, with more than a million workers unemployed on average throughout most of the 1920s.

      The causes were complex: the war of course was partly to blame. The four years of conflict had cost — in monetary terms — £11,325 million, including loans to allies to help them fight the war; many of these, including those to Russia, would never be repaid. The war was paid for partly out of taxation, partly by liquidating foreign investment, but mainly by loans both from home and overseas. The national debt, which had stood at £620 million in 1914, had risen to £8,000 million by 1924 — the largest slice of it owed to the United States. This led to a vicious spiral: something approaching half the country’s annual expenditure of £800 million went on servicing this debt, meaning that of the revenue raised by income tax, which had risen to an unprecedented five shillings in the pound by 1924, a quarter went towards debt repayment.

      Stanley Baldwin, essentially Prime Minister when Ramsay MacDonald was not, that is three times between 1923 and 1937, was a Worcestershire ironmaster whose companies had profited from wartime munitions contracts. Baldwin made an honourable (and discreet) gesture by sending a personal cheque for £120,000 to the Treasury, and there was talk of a national levy. But the problem was not solely debt. The requirements of peace were very different from those of war, and the heavy industries that had expanded to fulfil military needs now found themselves with spare capacity and an export market cut by half, with American and Japanese manufacturers moving into former British markets.

      Before the war Britain had been one of the most prosperous countries in the world. After a century and a half of economic growth, expanding trade and shrewd overseas investment, Britain could claim to be among the major industrialised nations and the undisputed hub of international trade and finance. Lancashire cotton mills produced sufficient yarn and textiles to clothe half the world, the shipbuilders of the North-East alone produced a third of the world’s output, Britain was the second largest producer of coal in the world; its merchant fleet accounted for almost half the world’s tonnage, while Britain was a major international creditor with a large inflow of invisible earnings from investments, shipping and insurance.

      However, there were serious long-term structural problems that exacerbated the consequences of war. Britain’s prosperity had depended largely on ‘old staples’ — coal, iron, steel, textiles and shipbuilding — which had provided three-quarters of the country’s exports and employed almost a quarter of the working population. At the turn of the century more recently industrialised countries such as Germany and the United States had challenged Britain’s position as the ‘workshop of the world’, and were developing new industries such as chemicals, electrical goods and engineering more rapidly than Britain. The appeal of overseas investment, and a dependence on the Empire as the market for British goods, had led to a neglect of the domestic

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