Resume

1. They were determined to dismantle the corporatist state, and to remove the regulations and controls from finance and industry. The also decided to lower taxes and to leave the labour force to regulate itself by pricing itself out of employment or by working within the amount of money employers could afford. Another decision was to abolish exchange controls and to limit government spending levels and use money supply.

2. Income tax was reduced from 33 to 24 per cent. The government increased Value Added Tax on goods and services to 17.5 per cent from the rates of 8 and 12.5 per cent which were both used in 1979. The government encouraged every free-market economy.

3. As a result of the M. Thatcher’s economic reforms by 1983 Britain imported more goods than it exported for the first time in 200 years. Britain’s share in of world trade fell by 15 per cent and its manufacturing sector shrank by 10 per cent in the years between 1979 and 1986.

By 1990 Britain moved into the deepest recession since 1930. Inflation rose to over 10 per cent.

4. There was a success in steel industry. In the 1960’s due to new oil resources found in the North Sea, Britain became the world’s sixth largest oil producer.

5. The Confederation of British Industry seeks to support industrial growth and planning, and also is determined to create a climate conductive to efficiency and profitability. The CBI is Britain’s major industrial institution with a membership of 250,000 companies.

6. The “Square Mile” of the City of London contains of several institutions: The Bank of England, the retail and wholesale banks, insurance companies and the Stock Exchange of the City.

7. The Bank of England has three main roles: to maintain the stability and value of the currency; to maintain the stability of the financial system in Britain and help maintain it internationally; to ensure the effectiveness of the financial services sector. In addition, it advises government and provides banking...