The 1911 Act was a reaction to the clash between the Liberal government and the House of Lords, culminating in the so-called "People's Budget" of 1909. In this Budget, the Chancellor of the Exchequer David Lloyd George proposed the introduction of a land tax based on the ideas of the American tax reformer Henry George. This new tax would have had a major effect on large landowners, and was opposed by the Conservative opposition, many of whom were large landowners themselves. The Conservatives believed that money should be raised through the introduction of tariffs on imports, which they claimed would help British industry. Contrary to British constitutional convention, the Conservatives used their large majority in the Lords to vote down the Budget. The Liberals made reducing the power of the Lords an important issue of the January 1910 general election.
The 1911 Act was a reaction to the clash between the Liberal government and the House of Lords, culminating in the so-called "People's Budget" of 1909. In this Budget, the Chancellor of the Exchequer David Lloyd George proposed the introduction of a land tax based on the ideas of the American tax reformer Henry George. This new tax would have had a major effect on large landowners, and was opposed by the Conservative opposition, many of whom were large landowners themselves. The Conservatives believed that money should be raised through the introduction of tariffs on imports, which they claimed would help British industry. Contrary to British constitutional convention the Conservatives used their large majority in the Lords to vote down the Budget. The Liberals made reducing the power of the Lords an important issue of the January 1910 general election.