Winston Churchill
President of the Board of Trade: 1908–1910

With Campbell-Bannerman terminally ill, Asquith became prime minister in April 1908. He appointed Churchill as President of the Board of Trade. Aged 33, Churchill was the youngest Cabinet member since 1866. Newly appointed Cabinet ministers were legally obliged to seek re-election at a by-election. On 24 April, Churchill lost the Manchester North West by-election to the Conservative candidate by 429 votes. On 9 May, the Liberals stood him in the safe seat of Dundee, where he won comfortably.

Churchill proposed marriage to Clementine Hozier; they were married on 12 September 1908 at St Margaret's, Westminster and honeymooned in Baveno, Venice, and Veveří Castle in Moravia. They lived at 33 Eccleston Square, London, and their first daughter, Diana, was born in 1909. The success of their marriage was important to Churchill's career as Clementine's unbroken affection provided him with a secure and happy background.

One of Churchill's first tasks as a minister was to arbitrate in an industrial dispute among ship-workers and employers, on the River Tyne. He afterwards established a Standing Court of Arbitration to deal with industrial disputes, establishing a reputation as a conciliator. He worked with Lloyd George to champion social reform. He promoted what he called a "network of State intervention and regulation" akin to that in Germany.

Continuing Lloyd George's work, Churchill introduced the Mines Eight Hours Bill, which prohibited miners from working more than an eight-hour day. In 1909, he introduced the Trade Boards Bill, creating Trade Boards which could prosecute exploitative employers. Passing with a large majority, it established the principle of a minimum wage and the right to have meal breaks. In May 1909, he proposed the Labour Exchanges Bill to establish over 200 Labour Exchanges through which the unemployed would be assisted in finding employment. He promoted the idea of an unemployment insurance scheme, which would be part-funded by the state.

To ensure funding for their reforms, Lloyd George and Churchill denounced Reginald McKenna 's policy of naval expansion, refusing to believe war with Germany was inevitable. As Chancellor, Lloyd George presented his " People's Budget " on 29 April 1909, calling it a war budget to eliminate poverty. With Churchill as his closest ally, Lloyd George proposed unprecedented taxes on the rich to fund Liberal welfare programmes. The budget was vetoed by the Conservative peers who dominated the House of Lords. His social reforms under threat, Churchill became president of the Budget League, and warned that upper-class obstruction could anger working-class Britons and lead to class war. The government called the January 1910 general election, which resulted in a Liberal victory; Churchill retained his seat at Dundee. He proposed abolition of the House of Lords in a cabinet memo, suggesting it be succeeded by a unicameral system, or smaller second chamber that lacked an in-built advantage for the Conservatives. In April, the Lords relented and the People's Budget passed. Churchill continued to campaign against the House of Lords and assisted passage of the Parliament Act 1911 which reduced and restricted its powers.
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