The Role of the State in the Financialisation of the UK Economy

Davis, Aeron and Walsh, Catherine. 2016. The Role of the State in the Financialisation of the UK Economy. Political Studies, 64(3), pp. 666-682. ISSN 0032-3217 [Article]

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Abstract or Description

This article looks at the role of UK governments in the financialisation of the British economy and its industry. It argues two things. First, the UK state has had a rather more active role here than most observers have acknowledged. Successive governments since the 1970s have not merely abandoned industry, they have handed much of its control to the financial sector. Second, a key part of this policy shift was linked to the rising power of the Treasury and its reshaping of the former Department of Trade and Industry in its own ideal economic policy image. This both boosted the City and disadvantaged industry, thus propelling the UK towards financialisation at a faster pace than almost all rival economies. The arguments are based on evidence from a mix of interviews with central actors, published insider accounts and an analysis of budget statements in the period 1976–2010.

Item Type:


Identification Number (DOI):


UK state, financialisation, Treasury and DTI, economic policy, 1976–2010

Departments, Centres and Research Units:

Media, Communications and Cultural Studies
Media, Communications and Cultural Studies > Goldsmiths Leverhulme Media Research Centre


10 April 2015Published Online
1 September 2016Published

Item ID:


Date Deposited:

19 Oct 2015 15:44

Last Modified:

14 Jun 2021 05:30

Peer Reviewed:

Yes, this version has been peer-reviewed.


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