By early 1935 even MacDonald could see the writing on the wall as pres-
sure for a change built up within the Conservative Party. His first assump-
tion was he and Baldwin would retire together but Baldwin soon put him
right on that and they agreed a timetable for the handover, and that
MacDonald would remain in the Cabinet but without portfolio (King
George V – always friendly towards MacDonald – wanted him to stay on
as Lord President of the Council so he could continue to see him often),
and that MacDonald’s son, Malcolm, one of the small band of ‘National
Labour’ MPs and a junior minister, should be promoted into the Cabinet.
On 7 June 1935 MacDonald resigned as prime minister and swopped offices
with Baldwin (‘I die today’ was his first thought on waking that morning,
as he recorded in his diary, his feelings after the event a mixture of regret
and relief – ‘I kept wondering who I was’ now, he admitted).
28
Opting to stay on as Lord President in Baldwin’s Cabinet, 1935–37, was a
tragic mistake. Physically and intellectually decrepit (his health continuing
to decline), politically isolated and ignored by his Tory colleagues, MacDonald
should have retired completely. When he finally went in May 1937, almost
no one noticed or cared.
MacDonald was unhappy about the Conservatives’ decision for an early
election, called for November 1935, and got nowhere when trying to per-
suade them to give up some more seats for their non-Tory allies. Although
offered a safer seat elsewhere, he decided to stand again in his Seaham con-
stituency, losing to Labour’s Emanuel Shinwell, a former protégé, with an
above-average swing and by a margin of over 20,000 votes in a bitterly-
fought contest. Humiliatingly he had to wait a couple of months before he
returned to parliament in a by-election for the Scottish Universities after
the Unionist Graduates Association was leaned on to nominate him.
29
He now cut a pathetic figure, lingering on in political and official limbo.
Marquand describes him as ‘a forlorn and, as time went on, an almost for-
gotten figure, cruelly aware of his diminishing effectiveness, full of griev-
ances against his colleagues and the world, and with no real influence on
events … [He] was more isolated politically than he had ever been. Though
he still served on the Committee of Imperial Defence and the Defence
Requirements Committee, as well as on a number of less important Cabinet
committees, Baldwin rarely consulted him informally, and when he tried
to ensure his views were heard in discussion outside the Cabinet he was
often snubbed. He scarcely ever appeared at the dispatch box, and the news-
papers ceased to pay attention to him. He had no patronage, no future, and
hardly any following; when he appeared in the lobbies, he seemed lost and
helpless, like a ghost from a vanished era.’ In 1935 he had just enough
clout to insist that Jimmy Thomas, one of his oldest friends in politics and
one of the few Labour figures who had stuck with him, be kept on as a
minister, but watched helplessly as Thomas was thrown to the wolves after
a budget leak scandal in 1936. Although ‘bitterly contemptuous’ of the
Lloyd George to Chamberlain 139