The naval-pay controversy caused unrest within the Labour Party, but the benefits dispute did more to split it. Together these pressures helped produce Ramsay MacDonald's National Government with Conservative support. The crisis unfolded in September 1931, just as confidence in sterling was fragile. In this account, unrest at Invergordon intensified the run on the pound and helped force Britain off the gold standard. A fleet personnel dispute therefore became part of a wider Depression-era political and monetary crisis.
Notable Point · 45:43-47:47
From Labour's benefits split to the run on sterling
The pay crisis added to political division and a run on sterling, linking naval administration to the National Government and Britain's departure from gold.