The Politics of Welfare Privatization: The British Experience

Abstract

The 1980s Conservative government in Britain is committed to policies of welfare privatization for practical and ideological reasons-to facilitate tax cuts and to roll back the state. One problem this policy faces is that the most expensive and interventionist services are highly popular with voters from all parties. In this article, the author examines the extent to which recent privatization policies in welfare are influenced by conflict between the goals of achieving tax cuts and of maintaining electoral support, so that the outcome is a change in the form of state interventionism, rather than a rolling back of the welfare state. It also considers the impact of new policies designed to undermine the consensus across social groups and political parties of support for big-spending state services, which may facilitate reductions in the overall scope of welfare provision in future years.