In terms of British society at home, this transformation of national character was wholly beneficent. It was a great achievement of Victorian moralis… - Correlli Barnett

It remained only for Britain during the war to pour out the rest of the investments and the gold on the purchase of war supplies from the United States, while at the same time cutting visible exports to a third of the 1938 level for the sake of war production, and the basis of Britain's economic existence for the last hundred years had been comprehensively destroyed.
In 1945 Britain was therefore left by this nemesis of free trade with none of the advantages of being highly dependent on foreign trade, and all the vulnerability. In the immediate postwar era, and for the first time since the beginning of the industrial revolution, she would have to depend almost entirely on visible exports in order to secure the life and work of the nation and to rebuild her old prosperity.

[T]he Cabinet...continued to put their faith in bringing about the "appeasement" of Europe by negotiation; in other words, in reaching a general settlement of all outstanding European problems with the co-operation and consent of Nazi Germany... The Cabinet thus elected to follow a course of action which stood in flat contradiction to their own expressed convictions about the nature and aims of the Nazi régime, and about the worth of the Nazi signature.
Nothing could be more in the romantic tradition than so to reject what was dictated by knowledge and commonsense, and instead pursue the impossible but ideal. But this was a Cabinet refulgent with high ideals – high Victorian ideals. By the mid-1930s the direction of English policy had fallen even more completely into the hands of clergymen manqués than during the 1920s and for the most part clergymen manqués now well advanced in middle-age or even into elderliness. In Baldwin's Cabinet in 1936, MacDonald, Runciman, Kingsley Wood, Neville Chamberlain and Simon represented the nonconformist conscience; Halifax and Hoare the High Church; and Inskip the evangelicals. Their approach to world affairs owed no less to Victorian liberalism, for they were deeply imbued with its abhorrence of struggle and its optimistic faith in human reason and goodwill... The political and moral equipment of the English cabinet ministers of 1936–7, being thus designed for an historical situation which had long since disappeared, was useless in the present international environment.

"Niceness", the desire "to do the decent thing" – these qualities constituted then, and still constitute today, the emotional essence of small 'l' liberalism. They are qualities desirable in a friend, a neighbour or a colleague, and admirable in the citizen of a democracy. But they serve ill as a guide to a nation's total strategy in a ruthless world of struggle. The dominance of these qualities over the British public mind and feelings therefore accounts more than any other factor for the contrast between British power in 1918 and British power in 1956. For the desire to be "nice" and "do the decent thing" lay at the heart of "appeasement", whether of dictators in the 1930s or trade unions in the 1940s and 1950s; it explains why the British saw their colonial empire as a trust, a civilising mission, rather than as a resource to be exploited if profitable, and dumped if not; it explains why the British saw the Commonwealth and the Sterling Area – indeed, world affairs in general – in terms of altruistic responsibility rather than of self-interested calculation. And it was this same desire to be "nice" and "do the decent thing", rather than a resolve to improve the competitive quality of Britain's human resources, which provided the inspiration behind "New Jerusalem".