George Lansbury was elected as the leader of the British Labour Party in a crucial period marked by economic strife. Following Arthur Henderson's resignation, Lansbury, known for his dedication to socialist principles and social justice, won the leadership election. This transition was set against the backdrop of the Great Depression, which had severely impacted the British economy, leading to widespread unemployment and social unrest. Lansbury's commitment to justice and equality resonated with many members of the party and the public. His leadership style was characterized by a deeper moral engagement and an emphasis on humanitarian concerns, positioning the Labour Party as a champion of the common man.

Lansbury's tenure faced immediate challenges, including the rise of unemployment and the growing power of the political right. He sought to strengthen the party's foundations and push for policies that would alleviate poverty and distress. Under his guidance, the Labour Party aimed to transcend traditional class boundaries and connect more deeply with the working-class electorate. Lansbury’s vision included a demand for greater government intervention in the economy and a robust welfare state, reflecting his belief that the state had a responsibility to protect its citizens from the vicissitudes of capitalist markets.

During Lansbury's leadership, the Labour Party experienced internal tensions regarding its direction and strategy, especially concerning its relationship with trade unions and its stance towards the Liberal and Conservative parties. Yet, his commitment to non-violence and a consensus-based approach helped maintain unity within the party, fostering a sense of collective purpose among its members. His leadership laid down ideological foundations that would influence Labour Party policies in subsequent years.