Rolling Back the State with Thatcher

·         Rolling Back the State.

·         Hand in hand with this new economic focus, Thatcher’s government well full steam ahead with policies of deregulation of the different markets.

• Credit and exchange controls were abandoned, making it easier to borrow money.
• Transport companies were deregulated to encourage competition, notably in buses.
• State schools were encouraged to opt out of local authority control and take responsibility for their own financing.
• Hospitals had to become more cost effective and not overspend.
• Council house tenants were given the right to buy their homes

·         Because more people could now borrow money, many spent this on consumer goods and holidays. Between 1980 and 1989 Britain’s balance of payments deficit rose from £16 billion to £47 billion.

·         The next logical step was to actually begin to privatise industries;

• 50 businesses were sold off during Thatcher’s premiership. They brought in huge revenues to the government.
• The aim was to increase ‘popular capitalism’ by making more ordinary people shareholders. Between 1979 and 1990 the number of shareholders in the UK…