While the MacDonald government was transitory, the first labor government was a vital sign of the achievements of Labor since its establishment as the Labor Representation Committee. First labor government was an essential landmark by which the Party could evaluate its advancement and policies. The party could also improve its administrative skills and approaches for the future. The first labor government substantiated its ability to govern (Murphy1946 p. 530). It is necessary to discuss some of the reasons why the first Labor Government was created in 1924.
The platform used by the Conservative Party to win previous elections was reducing the rate of unemployment. The British waited for the formulation and implementation of the necessary strategies. However, the rate of unemployment became serious after Conservative Party came into power. According to Daleand Iain (45), the number of people who were not employed before Conservative Party came to power was 1,153,600. Within ten months of their rule, the figure increased to 1,198,800 (Dale and Iain 45). The rate of unemployment was still increasing when the survey was being conducted. During this time, the wages decreased in Britain by close to a third. The policy introduced by Conservative Party to address this important question was indecisive. There was nothing new and operational that the government had done. In addition, the party had not kept their electoral pledges and promises yet the country was preparing for another election. Consequently, the first labor government had to solve these problems.
The Conservative Party supported the restoration of economic and commercial associations with the Russian people. However, the country needed to restore their credit and prepare the British industry to dominate foreign trade. The Conservative Party Minister decided to inform parliament to amend a treaty that made the British to guarantee credit to a government whose ideologies reject
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