“Breaking new ground”: The National Enterprise Board, Ferranti and Britain’s pre-history of privatization

Abstract

Privatization is closely associated with the ideological turn to neoliberalism and regarded as a cornerstone of Britain’s “Thatcherite project”. Margaret Thatcher’s Conservative government did not undertake its major privatizations of state-owned businesses until its second term began in 1983. We argue in this paper, however, that the 1980 disposal by the National Enterprise Board of its controlling interest in the engineering and electronics company Ferranti offers significant insights into the development of privatization policy and practice, as well as the changing role of the state in British business. This disposal reflected the early caution of some of the Thatcher government’s actions but contributed to fulfilment of an electoral commitment and provided valuable privatization experience in addressing difficult financial, industrial and political issues.