When Labour won the general election of 1945,
Clement Attlee appointed Cripps
President of the Board of Trade, the second most important economic post in the government. Although still a strong socialist, Cripps had modified his views sufficiently to be able to work with mainstream Labour ministers. In Britain's desperate postwar economic circumstances, Cripps became associated with the policy of "austerity." As an upper-class socialist he held a puritanical view of society, and took a grim pleasure in enforcing rationing with equal severity against all classes.
In 1946, Soviet jet engine designers approached Stalin with a request to purchase jet designs from Western sources in order to overcome design difficulties. Stalin is said to have replied: "What fool will sell us his secrets?" However, he gave his assent to the proposal, and Soviet scientists and designers travelled to the United Kingdom to meet with Cripps and request the engines. To Stalin's amazement, Cripps and the Labour government were perfectly willing to provide technical information on the
Rolls-Royce Nene centrifugal-flow jet engine designed by RAF officer
Frank Whittle, along with discussions of a license to manufacture Nene engines themselves. The Nene engine was promptly reverse-engineered and produced in modified form as the Soviet
Klimov VK-1 jet engine, later incorporated into the
MiG-15 which flew in time to deploy in combat against UN forces in North Korea in 1950, causing the loss of several
B-29 bombers and cancellation of their daylight bombing missions over
North Korea.
In 1946, Cripps returned to India as part of the so-called
Cabinet Mission, which proposed various formulas for independence to the Indian leaders. The other two members of the delegation were
Lord Pethick-Lawrence, the
Secretary of State for India, and
A. V. Alexander, the
First Lord of the Admiralty. However, the solution devised by the three men, known as the
Cabinet Mission Plan, was unsatisfactory to the
Indian National Congress (Gandhi is believed to have quipped that it was a "postdated cheque on a failing bank"), and India travelled further down the road which eventually led to
Partition.
In 1947 amidst a growing economic and political crisis, Cripps tried to persuade Attlee to retire in favour of
Ernest Bevin; however, Bevin was in favour of Attlee remaining. Cripps was instead appointed to the new post of
Minister for Economic Affairs. Six weeks later
Hugh Dalton resigned as
Chancellor of the Exchequer and Cripps succeeded him, with the position of Minister for Economic Affairs now merged into the Chancellorship. Cripps laboured tirelessly to rescue Britain from its economic crisis. He increased taxes and forced a reduction in consumption in an effort to boost exports and stabilise the
Pound Sterling so that Britain could trade its way out of its crisis. He strongly supported the
nationalisation of strategic industries such as coal and steel.
Although Cripps's severe manner and harsh policies made him very unpopular, he won respect for the sincerity of his convictions and his tireless labours for Britain's recovery. His name once induced an infamous
Spoonerism when the
BBC announcer
Macdonald Hobley introduced him as 'Sir Stifford Crapps'.