ABSTRACT
This chapter analyses the changing social and economic context of British politics. It discusses the politics of the 2007—8 banking crisis and subsequent recession and the 'austerity economics' which have dominated politics for the last 10 years. The chapter examines the social and economic context of British politics and focuses on international issues where relevant. It discusses the major social characteristics and cleavages that impact on British politics, starting with the traditional one of social class and the extent to which it has been a factor with declining salience. The chapter also discusses the economic context, placing recent developments into a broader historical context of decline and crisis in the British economy which are recurring themes in British politics and culminating in the banking crisis of 2007—8, the consequent recession and the austerity agenda since 2010. A corporatist economic model is one in which there is close collaboration between the government, labour and business.
