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The Reasons Behind Privatisation Of Public Services

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In order to understand the reasons behind privatisation of public services, it is essential to study the socio-political environment of the UK in the 1970’s. During this period of time, the UK was hit by the post-war crisis, which led the Tories British political party, also known as the Conservative Party, to lose dominance in the parliament. During this time, in the Ridley Report, the Thatcher shadow cabinet started suggesting about the need to break up the public sector and to disjoint unions. Initially, privatisation was subordinate to other policy themes. Nonetheless, during Margaret Thatcher’s governance starting in 1979, a certain degree of privatisation was put in place, notably regarding British Aerospace and Cable & Wireless (1). Nonetheless, during this period of time, the government’s aim was to privatise profitable entities, in order to increase revenues and therefore minimize borrowing from the public-sector.
The 1980’s was the lift-off for privatisation of public services. At the heat of the 1980’s recession the Conservative Party proposed privatisation as the elixir to this economic downturn. The dogma was that privatisation could provide efficiency and productiveness to large utilities, and therefore aggrandise British Capitalism. As a consequence, the government decided to not only sell the remaining of Cable & Wireless, British Aerospace, Britoil and British Gas, but also to sell off Jaguar. The idea behind privatisation now switched to privatising

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