gold standard John Maynard Keynes deflation widow's pensions income tax social reform Conservative Party
Becoming Chancellor on 6 November 1924, Churchill formally rejoined the Conservative Party. As Chancellor, he intended to pursue his free trade principles in the form of laissez-faire economics, as under the Liberal social reforms. In April 1925, he controversially albeit reluctantly restored the gold standard in his first budget at its 1914 parity against the advice of some leading economists including John Maynard Keynes. The return to gold is held to have caused deflation and resultant unemployment with a devastating impact on the coal industry. Churchill presented five budgets in all to April 1929. Among his measures were reduction of the state pension age from 70 to 65; immediate provision of widow's pensions; reduction of military expenditure; income tax reductions and imposition of taxes on luxury items.
