From 1926 Britain fell into a condition of deep national crisis, which seemed to threaten its domestic stability and international power. By 1932 the effort to contain these problems had transformed British politics and policy. Strains produced by three-party politics, economic recession and imperial difficulties resulted during 1931 in such a severe financial and political crisis that the Labour government collapsed and Conservative, Liberal and some Labour leaders joined together in a National government. Despite large public expenditure cuts and tax increases, and despite devaluation of sterling and a new crisis in the Indian Empire, this government obtained the greatest British election victory of modern times. This book is the first to examine all aspects of the crisis together and in depth, using an extensive range of official, institutional and personal papers.