structural:expansion
Shipping

In early 1917 the Germans had resumed unrestricted submarine warfare in a bid to achieve victory on the Western Approaches. Lloyd George set up a Ministry of Shipping under Sir Joseph Maclay, a Glasgow shipowner who was not, until after he left office, a member of either House of Parliament, and housed in a wooden building in a specially drained lake in St James's Park, within a few minutes' walk from the Admiralty. The Junior Minister and House of Commons spokesman was Leo Chiozza Money, with whom Maclay did not get on, but on whose appointment Lloyd George insisted, feeling that their qualities would complement one another. The Civil Service staff was headed by the highly able John Anderson (then only thirty-four years old) and included Arthur Salter. A number of shipping magnates were persuaded, like Maclay himself, to work unpaid for the ministry (as had a number of industrialists for the Ministry of Munitions), who were also able to obtain ideas privately from junior naval officers who were reluctant to argue with their superiors in meetings. The ministers heading the Board of Trade, for Munitions (Addison) and for Agriculture and Food (Lord Rhondda), were also expected to co-operate with Maclay.

In accordance with a pledge Lloyd George had given in December 1916 nearly 90% of Britain's merchant shipping tonnage was soon brought under state control (previously less than half had been controlled by the Admiralty), whilst remaining privately owned (similar measures were in force at the time for the railways). Merchant shipping was concentrated, largely on Chiozza Money's initiative, on the transatlantic route where it could more easily be protected, instead of being spread out all over the globe (this relied on imports coming first into North America). Maclay began the process of increasing ship construction, although he was hampered by shortages of steel and labour, and ships under construction in the United States were confiscated by the Americans when she entered the war. In May 1917 Eric Geddes, based at the Admiralty, was put in charge of shipbuilding, and in July he became First Lord of the Admiralty. Later the German U-boats were defeated in 1918.