Privatisation has also had a role in changing the economic context of British politics since 1945. Between 1945 and 1951 the labour government nationalised all the major industries following the war, this included industries such as gas, electricity and travel. In the 80’s Britain became more capitalist and the conservative government privatised all the major industries between 1979 and 1997. By 1996 the privatisation had raised £65 billion for the government. However GDP from nationalised industries fell from 9% in 1979 to 3.5% in 1989 (B. Coxall & L. Robbin, 1998 p.45). More recently there has been privatisation of schools, hospitals and prisons by the labour government. This is policy is known as PFI (Private Finance Initiative) and involves the government using a private company to design, build or manage public buildings, which are then leased back over a period of around 30 years. (Department of Health).
Since 1945 there has also been a change in the make up of the British population, which has had an impact on the social context of politics. There has been a shift in class from working class to middle class. In 1951 the middle class made up about one third of the population and the working class around two thirds. By the 1990’s this had changed dramatically and the middle class had become the biggest grouping (B. Coxall & L. Robbin, 1998 p.40). However the richest are getting richer, whilst the poor are getting poorer, for example in 1974 the marketable wealth of the most wealth 5% of the British population was 38%, and by 2002 this had grown to 43% (B. Jones, et al. 2007. p.74). Although living standards are higher there are still a number of inequalities within our population as there was in 1945. Another change in the make up of the British population since 1945 is the growth in which Britain has become multi-ethnic and multi-cultural. The most notable large scale migrations came in 50’s and 60’s from the West Indies and Indian sub-continent. This brought new religious and racial identities to Britain and for the first time there was the idea of an ethnic minority, by 2001 the number of people describing themselves as belonging to an ethnic minority was 8% of the population (B. Jones, et al. 2007. p.74).
The idea of separate nations and regions has an impact on the social and economic context of British politics. There are inequalities within Britain and there is what is referred to as the ‘north/south divide’. In the 1980’s there was growing economic divisions between the prosperous ‘south’ and northern regions such as the north west of England and Scotland. For example, for income as a percentage of the UK figure, in 1994 the south east was 117%, where as the percentage for Yorkshire and Humberside was 89% in the same year (B. Coxall & L. Robbin, 1998 p.44). This was due to a decline in traditional industries such as steel and coal which where largely based in the north. The difference in wealth between regions has made some commentators argue that the south is paying for the north. Another change which nation has had in terms of the context of British politics is devolution. Recently Scotland and Wales have gained devolved powers over Westminster. This gives them some social and economic independence and Scottish parliament can even raise or lower the basic rate of income tax by 3 pence in the pound.
Globalisation has had a role to play in the changing social and economic context of British politics. Since 1945 there has been huge growth in travel and communications, the growth of air travel and the internet for example. There has also been huge growth in world trade and the number of multi national companies, which is important to Britain as it place host to vast numbers of these companies. Britain has also come to rely more on trade and it is now a large slice of our economy, for example with the exports of goods accounting for 28% of GDP in 1995 (B. Coxall & L. Robbin, 1998 p.47). Britain’s economy has become reliant on the world economy; a recent example of how this can affect our economy is Northern Rock. Northern Rock became under finical difficulties when a French bank, BNP Paribas’s suspended three of its investment funds with exposure to the troubled US sub-prime market (BBC 2007). Here actions by a French bank and market conditions in America had an impact on a British company. Globalisation also has a role in changing the social context of British politics. Since 1945, and probably before, Britain has had increasing links with United States. This has had For example in recent years Britain went to war in Iraq, with United States and others without the consent of the UN.
Europeanization has also had an affect in changing the social and economic context of British politics. Since 1945 and the collapse of the empire Britain has become more linked with Europe. Britain joined the European Community in 1973, now known as the EU and since then it has had growing influence on the economic and social context of British politics, for example EU law is supreme to British law. The free market has had an affect on our economy, and where as exports to commonwealth countries has fell from about two fifths to one twentieth, exports to western European (EU) countries has increased from one-third to over three-fifths in 1995 (B. Coxall & L. Robbin, 1998 p.47). More recently the addition of eastern and central European countries to the EU has had a further influence in the social and economic context of British politics. These countries are not as wealthy as those which where already in the EU and may people have chosen to come to work and live in Britain. Since 2005 there has been 2.7 million new jobs created in Britain, 52% of which went to foreign workers, many of whom came from the new EU countries (Scotsman 2007). These foreign workers, in many instances have got jobs at the expense of unemployed British people.
In conclusion the social and economic context of British politics has changed to a notable extent since 1945. Important structural changes have occurred in Britain’s economy and there has been a shift from manufacturing and traditional industries, to a more service driven economy. In addition to this there has been a transfer from public ownership to privatisation started by the conservative government in 1979. The commonwealth plays a less significant role in the economy and trade has been switched away to the EU and other markets. Globalisation has also had an effect on our economy since 1945, as our economy has been increasingly depended on world markets and events else where. Class remains important in British society however there has been a decline in the working class and a growth of the middle class and although differences have become smaller inequalities still exist. Since the 60’s divisions along the lines of race and religion have become more important due to immigration and the growth in ethnic minorities. Nation and region have gained more significance and devolution in Scotland and Wales have took away some of Westminster social and economic powers.
Bibliography:
Coxell, B & Robins, L (1998) Contemporary British Politics, 3rd edition, London: Palgrave
Jones, B, Kavanagh, D., Moran, M., & Norton, P. (2007) Politics UK 6th edition, Essex: Pearson Education Limited.
Websites:
BBC, 26/11/07: viewed on 27/11/07
Department Of Health: viewed on 27/11/07
The Scotsman, Gerri Peev, 31/11/07: viewed on 27/11/07
