ABSTRACT
The experience of the Second World War underlined the importance of a healthy economy in the age of mechanised warfare. The revolution in warfare brought a greater reliance on large scale mechanisation of the military, and a strong armaments industry and engineering sector had become one of the pillars of military power. The ability of the allies to outproduce their enemies was seen as instrumental in their victory over Germany and Japan.1 Immediately after the Second World War, however, the Labour government had been determined to restrict severely the resources going to defence in order to facilitate the restoration of a balanced peace economy as soon as possible.
