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Second Labour GovernmentThe Second Labour Government was formed by Ramsay MacDonald on his second appointment as Prime Minister of the United Kingdom on June 5 1929. As the name suggests it was the second occasion on which the Labour Party had formed a government; the First Labour Government held office during 1924. The government lacked a parliamentary majority, whilst also facing the problems stemming from the impact of the Great Depression. In the summer of 1931 it was gripped by a political and financial crisis as the value of the pound and its place on the Gold Standard came under threat over fears that the budget was unbalanced. During August 1931 the Cabinet struggled to produce budget amendments that were politically acceptable but proved unable to do so without causing mass resignations and a fullscale split in the party. On August 24 1931 the government formerly resigned. It was succeeded by the First National Ministry, also headed by Ramsay MacDonald and made up of members of Labour, the Conservatives and Liberals, calling itself a National Government. The circumstances of the downfall of the Labour government and its replacement by the National Government have provoked massive controversy ever since. Ramsay MacDonald's Cabinet, June 1929 - August 1931 Changes
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