The first bill introduced by the Labor Party, and enacted into law, authorized the providing of meals for poor children in the schools. It does not make this compulsory, but under its sanction in 1909 over $670,000 were spent in providing over 16,000,000 meals. Nearly half of these were in London.[26] This law is especially assailed by the anti-Socialists. They claim its administration has been too lenient, not discriminating between the needy and those capable of self-help. It is only the entering wedge of Socialism, they say; it is only a step from feeding the child to clothing him, and from feeding and clothing the child to caring for the parent. They recall that Sidney Webb has often said that if the city furnishes water free to its citizens it should be able to furnish milk as well.

The second bill introduced by the Labor Party was the Trades Dispute Act. This was framed to annul the Taff Vale decision, making the unions immune from suits for tortious acts and providing an elaborate system of arbitrating labor disputes. The provisions of this act were tested by two railway crises. In 1907 the railway employees threatened to go out on strike. Lloyd George, then president of the Board of Trade, averted the strike by enlisting all the power of the government in persuading the companies and the men to agree to a scheme of arbitration. This was to last a stipulated term of years, but before the time had elapsed the men actually struck (1911), and for a week the country was in a panic. Lloyd George, then Chancellor of the Exchequer, again used all the power of the government to bring peace, and a commission was appointed to investigate the grievances of the men, who had agreed to abide by its decision. In this way the government has become the most active force in settling labor disputes—a subject that was formerly left to the two parties of the labor contract.

A Workman's Compensation Act and an Old-Age Pension Act soon followed. The latter provides a pension for all workmen who are 70 years old. Unlike the German act, the government provides all the funds. In 1909 the Labor Exchange Act empowered the Board of Trade to establish labor exchanges. These have been established in every city. At first there was some friction with the unions because "blacklegs" were assigned to places. But since union men have been invited to sit on the local governing committees, things are running smoother.

There are three laws which show the trend of the changing relation of the state to property.

The Development Act of 1909 provides for the appointment of five commissioners, upon whose recommendation the Treasury advances money to any governmental department or public authority or university or association of persons for the purpose of aiding agriculture and rural industries of all sorts; the reclamation of drainage lands and of forests; the general improvement of rural transportation, including the building of "light railways"; the construction and improvement of harbors; the improvement of inland navigation, including the building of canals; and the development and improvement of fisheries. This law endows the government with the necessary authority for the absorption of virtually all the internal means of communication except the trunk railways, and extends the paternal arm of the government over agriculture and the fisheries and subsidiary industries.[27] The first report of the commission, 1910-11, indicates that work under this law has begun in earnest. A comprehensive plan of regeneration, embracing the entire kingdom and based on adequate surveys, is outlined. One of the interesting features of the plan is the proposal to do as much of the work as possible by direct labor rather than by competitive bidding. The commission wants to make sure "that the funds shall not go into the pockets of private individuals."[28] Under an enthusiastic commission there will be practically no limit to the influence of this law.

Two other acts are closely allied with this scheme: the Small Holdings Act of 1908, and the Housing and Town Planning Act of 1909. The Small Holdings Act gives authority to county councils to "provide small holdings for persons who desire to buy or lease and will themselves cultivate the holdings." This provision is extended to borough, urban, district, and parish councils. These authorities may purchase such lands "whether situate within or without their county."

The Town Planning Act gives cities and towns the power to purchase land and allot it, to tear down undesirable buildings, to co-operate with any workingman's association for improving and erecting dwellings, and to buy the necessary land for making improvements of all kinds. John Burns, who stood sponsor for this bill, explained that it gave complete authority to local governing bodies "to make a city healthful and a city beautiful."

Following the British habit, work has very cautiously begun under these acts. Up to December, 1910, about 28,000 acres were purchased or leased under the allotment act, and sublet to 100,498 individual tenants. "Town planning" has progressed rapidly, and the regeneration of the British slums, the most dismal in the world, may be not far distant.[29]

Under the Small Holdings Act there were, up to December, 1910, nearly 31,000 applicants, asking for over 500,000 acres. Only one-fifth of this amount was acquired, for 7,000 holders. Thirty per cent. of the applicants are agricultural laborers, and the majority of the others are drawn from the rural population who have some small business or trade in the villages and wish a plot of land for a garden. This "often makes the difference between a bare subsistence and comparative prosperity."[30]

These laws show the drift of the current. The question of the nationalization of railways has been the subject of Parliamentary inquiry, and the great railway strike of 1911 emphasized the matter profoundly. The state in 1911 completed the taking over of all the telephone lines; it conducts an extensive postal savings bank and a parcels post.