The Labour Party, under Ramsay MacDonald, had failed to win the general election of December 1923, with 191 seats, although the combined Opposition tally exceeded that of the Conservative government, creating a hung parliament.

Nevertheless, shortly after the election the Conservative leader Bonar Law died and was replaced by Baldwin, who reneged on his predecessor's electoral pledge not to introduce protective tariffs.

Baldwin advised King George V to send for MacDonald, since the Labour Party held more seats in the Commons than the Liberals.

MacDonald accepted the King's commission later that day, arriving with his Labour colleagues, to the amusement of many and dismay of others, in full court dress.

A former chairman of the parliamentary party, Willie Adamson, became Scottish Secretary, while left-wingers Fred Jowett and John Wheatley became, respectively, First Commissioner of Works and Minister of Health.

Although this might not have meant much in terms of concrete policy-making, it at least did not alarm voters who may have feared that the party would dismantle the country and promulgate 'socialism'; although, in any case, its tenuous parliamentary position would have made radical moves near impossible.

Despite lacking a parliamentary majority, the First Labour Government was able to introduce a number of measures which made life more tolerable for working people.

[2] Restrictions on education spending imposed by the previous government were removed, while local authorities were encouraged to increase the number of free secondary school places.

[4] A law was introduced which modified the right of a landlord to obtain possession of a house for his own family's use, where unnecessary hardship would be caused to the tenant.

[17] A subsidy for sugar beet cultivation to support agriculture was introduced,[18] while schemes for roads and bridges, land reclamation and drainage, and afforestation were developed and extended.

[20] The restrictions imposed by the previous government on spending by the Poplar Board of Guardians were removed,[4] while the National Health Insurance (Cost of Medical Benefit) Bill revised the capitation fee paid to doctors.

The rate of interest charged under the Agricultural Credits Act 1923 passed by the previous Conservative government was reduced to 4%, while a 5% reduction on admissions to training colleges (imposed in 1923) was withdrawn.

[13] During its first six months in office, the First Labour Government issued a circular that removed restrictions on grants for health services, an action which led to the extension of welfare schemes for childhood and maternity.

About 70 new infant welfare centres had been opened, more health visitors had been appointed, many more beds had been provided in homes for mothers and babies, and the milk supply was extended in 16 cases.

To alleviate unemployment and distress caused in the Outer Hebrides due to a depression in the fishing industry and the failure of crops, the board inaugurated relief work schemes which had for their object the resurfacing of the roads in the regions affected.

Financial assistance was allocated towards the execution of Land Drainage schemes to reduce unemployment in several areas while loans were granted to crofters to enable them to purchase the implements and seeds necessary for the cultivation of their holdings, and to take over stocks of sheep and other livestock.

The provisions under which Poor Law Relief was accorded to able-bodied unemployed and their dependents were extended for a further year, and were improved to permit of parish councils making grants in aid of emigration.

[25] According to the Labour Party historian G. D. H. Cole, in summing up the record of the First Labour Government, What it could do and did achieve was to undo a good many of the administrative effects of the "Geddes Axe," to pass several valuable measures of social reform, and to make a somewhat faint-hearted attempt at coping with the unemployment problem by the institution of public works[5]Many historians have argued that the first Labour Government's most notable achievements were in foreign affairs, of which Ramsay MacDonald had devoted much time and effort, having taken the posts of both Prime Minister and Foreign Secretary.

The Dawes Conference was subsequently held to find a solution to the crisis, and, in August 1924, it concluded that Germany had to achieve economic stability before paying out any reparations.

Although France refused to adopt the Dawes Plan, MacDonald spent most of his time as Foreign Secretary trying to win over the French.

[9] Through sharp negotiating skills and powers of persuasion, Macdonald was able to successfully make the Prime Minister of France Édouard Herriot agree to all of the proposals in the Dawes Plan, apart from an immediate withdrawal from the Ruhr.

MacDonald's success in helping to resolve international disagreements at this time was arguably one of the first Labour Government's most significant accomplishments.

The Daily Mail published a letter apparently written by Grigory Zinoviev, the head of the Communist International (Comintern), which asked supporters to prepare for imminent revolution.

The Liberals were also becoming increasingly restive about continuing to support the government, while MacDonald's inability to delegate tasks to subordinates was also a factor in Labour's demise.