The history of the London School of Economics dates from 1895, when the School was founded by Fabian Society members Sidney and Beatrice Webb, Graham Wallas, and George Bernard Shaw, with funding provided by private philanthropy, including a bequest of £20,000 from Henry Hunt Hutchinson to the Fabian Society.
Foundation and early history
Supposedly the decision to found the school was made at a breakfast party on 4 August 1894. All believed in advancing socialist causes by reformist rather than revolutionary means, and the LSE was established to further the Fabian aim of bettering society, focusing on research on issues of poverty, inequality and related issues. This led the Fabians, and the LSE, to be one of the main influences on the UK Labour Party.
The School was founded with the initial intention of renewing the training of Britain's political and business elite, which seemed to be faltering due to inadequate teaching and research - the number of postgraduate student