Playing Both Sides Against the Middle: The Labour Party and the Wholesaling Industry 1919 1951

This article examines the Labour party's attitude towards thewholesaling industry. During the inter-war period wholesalers,‘middlemen’ as they were commonly called, occupiedthe position of bogeyman in much Labour party thinking and literature.As a result the Labour governments of the 1920s took actionsdesigned to achieve two ends: to improve the efficiency of fooddistribution, and to limit the power of middlemen to exploitboth ends of the food production chain, farmers and consumersalike. This ideological positioning of the middleman by Labour,and the reforms introduced under the MacDonald governments,stressed the need to establish farmers’ co-operativesand consumers’ protection agencies, and also emphasizedthe importance of other measures designed to boost efficiency.However, by the time of the Attlee governments the cornerstoneof the inter-war policy, the producer co-operative, had beenabandoned and the focus of debate shifted to various forms ofnationalization. This change of policy is examined in this article.Though post-war Labour manifestos pledged to nationalize sectionsof the wholesaling industry, and despite the fact that the partyunder Attlee discussed the nationalization of wholesaling atlength, the industry remained in private hands. An attempt tounderstand how and why the nationalization of wholesaling wasopposed within the party and shelved by the Attlee governmentsis central to this study.