ABSTRACT
This chapter explains that industrial policy has played a relatively minor part in overall economic management in Britain. In the industries themselves, individual firms, companies formed into consortia to pressure government, professional institutions and telecommunications and microcomputer trade associations all participate. Ironically, Labour governments in favour of state control have felt it necessary to establish the legitimacy of their intentions towards industry and their respect for company autonomy by working through institutions legally differentiated from Ministers and staffed by businessmen. The Labour Party has tended to use less indirect mechanisms of financial aid to industry, although the Callaghan government gave various tax relief measures to industry in general. The chapter also argues that the most obvious mechanisms of industrial intervention for a country with a liberal ideology are those of tariff barriers and indirect mechanisms such as defence expenditure.
