Domestic impact of war: industry and economy

Overview

The Great War greatly impacted the UK’s domestic situation, particularly in relation to industry and economy, with various sectors experiencing profound changes.

War-time Mobilisation

The War Precautions Act of 1914 gave the government extraordinary control over the economy for the purpose of conducting war.
Inner industries converted to produce military supplies; many factories shifted from manufacturing consumer products to making arms and ammunition.
Private shipbuilding was basically halted to prioritise the construction of navy vessels which increased the strength of the Royal Navy.
Industries such as coal mining and steel production saw increased demand due to the war needs for coal-powered ships and steel for weapons and machinery.
The mechanisation and industrialisation of war led to the creation of new industries such as aircraft manufacturing, chemical industries for producing explosives and poison gas.

Labour and Women’s Work

As men left for the war, vacancies in factories were filled by women, leading to a significant change in traditional gender roles.
Women were employed in munitions factories, working on assembly lines for weapons and shells—a job with notable risks associated with handling explosive material.
The number of women in the workforce increased dramatically; by 1918, there were approximately 1.6 million more women working than in 1914.
The war also led to an upsurge in trade union membership. These organisations were instrumental in negotiating for better wages and safer working conditions for workers, particularly for women.

Economic Changes

While war led to an initial economic boom due to increased industrial production, the long-term impact was heavy national debt, as the country had to borrow vastly to fund the war.
The massive financial strain of the conflict led to inflation, resulting in increased prices which further pushed the working classes’ living standards down.
Rationing was introduced, and civilians faced shortages of consumer goods and food due to the shifting focus on war production and submarine warfare interrupting import supplies.
Taxes were raised to finance the war debt, with direct taxes like income tax reaching new highs.

Post-war Economy

Many industries, like shipbuilding faced notable decline after the war as demand for war goods suddenly ceased.
Unemployment soared in the immediate post-war period, notably among ex-servicemen and women who lost their wartime jobs.
The government initiated schemes to help veterans re-establish their place in the labour market, but progress was slow.
War pensions and benefits were put in place to help alleviate the hardships of those wounded or made widows by the war. However, they were often insufficient and contributed to the overall strain on the economy.

Legacy

The economic and industrial consequences of the Great War were far-reaching, setting economic trends and instigating social changes that would greatly shape the early 20th-century history of Britain.
Specifically, the role of women in the economy changed fundamentally as a result of their wartime contributions. Despite facing setbacks in the post-war period, steps towards women’s wage equality had been set in motion.
The war also marked the beginning of the state’s greater role in managing the economy and in social welfare—concepts that would be vital to post-war rebuilding efforts and further develop during the crises and recovery of the rest of the 20th century.