As to the Navy, we must keep ahead of the German Navy... If our Fleet was not superior to the German Fleet, our very independence would depend on Ger… - Edward Grey, 1st Viscount Grey of Fallodon

We worked for peace up to the last moment, and beyond the last moment. How hard, how persistently, and how earnestly we strove for peace last week the House will see from the papers that will be before it. But that is over, as far as the peace of Europe is concerned. We are now face to face with a situation and all the consequences which it may yet have to unfold.

If we alone, among the great Powers, gave up the competition and sank into a position of inferiority, what good should we do? None whatever—no good to ourselves because we cannot realise great ideals of social reform at home when we are holding our existence at the mercy, the caprice if you like, of another nation. That is not feasible. If we fall into a position of inferiority our self-respect is gone, and it removes that enterprise which is essential both to the material success of industry and to the carrying out of great ideals, and you fall into a state of apathy. We should cease to count for anything amongst the nations of Europe, and we should be fortunate if our liberty was left, and we did not become the conscript appendage of some stronger Power. That is a brutal way of stating the case, but it is the truth.

Mr. Lloyd George is a colleague with whom I have always been on the best of terms personally, and the Budget raises the money required in a way which presses much less, I believe, upon the poorer classes than any alternative that could be devised.