ending ▁and ▁w age ▁cut s ▁split ▁the ▁Labour ▁government : ▁as ▁it ▁turned ▁out , ▁beyond ▁recovery . ▁The ▁political ▁dead lock ▁that ▁resulted ▁caused ▁invest ors ▁to ▁take ▁fright , ▁and ▁a ▁flight ▁of ▁capital ▁and ▁gold ▁further ▁de - st abil ised ▁the ▁economy . ▁In ▁response , ▁Mac Donald , ▁on ▁the ▁ur ging ▁of ▁King ▁George ▁V , ▁decided ▁to ▁form ▁a ▁" National ▁Government " ▁with ▁the ▁Conserv atives ▁and ▁the ▁Liber als . ▁ ▁On ▁ 2 4 ▁August , ▁Mac Donald ▁submitted ▁the ▁res ignation ▁of ▁his ▁minister s ▁and ▁led ▁his ▁senior ▁colle agues ▁in ▁forming ▁the ▁new ▁National ▁Government . ▁Mac Donald ▁and ▁his ▁supp or ters ▁were ▁exp elled ▁from ▁the ▁Labour ▁Party ▁and ▁adopted ▁the ▁label ▁" National ▁Labour ". ▁The ▁Labour ▁Party ▁and ▁some ▁Liber als , ▁led ▁by ▁David ▁Lloyd ▁George , ▁went ▁into ▁opposition . ▁The ▁Labour ▁Party ▁den ounced ▁Mac Donald ▁as ▁a ▁" tra itor " ▁and ▁a ▁" rat " ▁for ▁what ▁they ▁saw ▁as ▁his ▁bet ray al . ▁ ▁So on ▁after ▁this , ▁a ▁general ▁election ▁was ▁called . ▁The ▁ 1 9 3 1 ▁general ▁election ▁resulted ▁in ▁a ▁Conserv ative ▁lands lide ▁victory , ▁with ▁the ▁now ▁leader less ▁Labour ▁Party ▁winning ▁only ▁ 4 6 ▁seats ▁in ▁Parliament . ▁After ▁the ▁ 1 9 3 1 ▁election ▁the ▁national ▁government ▁was ▁Conserv ative - domin ated , ▁although ▁Mac Donald ▁continued ▁as ▁prime ▁minister ▁until ▁ 1 9 3