Defence privatisation: From state enterprise to commercialism

In a British context, the idea of defence as a state prerogative was first challenged by the Thatcher government, driven by a changed international security environment, free market ideology, the management ethic, reduced public spending, and value for money principles. The trend was carried forward by the Major administration and, today, that of ‘New Labour’. This article traces the stage by stage breakdown of state control of the provision of defence in the UK, and outlines the complex relationship between external and internal developments which propelled these changes. It analyses UK defence policy after the 1997–98 Strategic Defence Review, which has opened up for further privatisation of defence services, and addresses the question of how far these developments can be carried forward before the very foundation of the state is undermined.