Privatisation and deregulation

• 1983 election gives her mandate with majority of 144
• Lawson abandoned spending targets
• Move to supply side economics
• what were companies privatised under Thatcher?

  • BP and Aerospace before mandate
  • British Gas - biggest share offer in history
  • British telecom
  • Rolls Royce
  • water
• driven by anti socialist ideology
• Businesses competing would offer better innovation
• Outsourcing became popular- refuse
• Raised over 2 billion
• Critics of privatisation

  • Job insecurity rose
  • unemployment rose
• end of post war consensus
• Deregulation - limiting government interference through cutting red tape
• Enterprise allowance scheme to aid deregulation

  • given £40 a week for a year to aid startups
• Big Bang 1986

  • deregulated London stock exchange - removed old boys with free screen competition
  • Yuppie became image of 1980’s - London becomes financial capital and became most important export