Summarizes the industrial policies of Britain since World War II, especially how Britain failed because it lacked an economic theory of what industrial policy was for, and had weak institutions for implementing such policies.

Paul Johnson began his relationship with the series with his analysis of Conservative economic policy in The Coalition Effect and will return, with his team, to his conclusions then, analysing not just the first period of austerity but also how Conservative economic policy has evolved through the post-referendum premierships of Theresa May, Boris Johnson, Liz Truss and Rishi Sunak.

The high level of the Napoleonic military and financial threat concentrated the minds of different interests in Britain, ensuring broad cooperation. This enabled the government to tax the rich without serious resistance, thus furnishing the basis of war finance. Loans came from the City of London, which worked closely with the government. Contracts with contractors were generally well administered. Naval superiority enabled convoys to protect and maintain trade, and particularly to obtain specie from Mexico, much needed by Wellington’s armies in the Peninsula as well as for subsidies for continental powers. For the last two years of the war, the government had to deploy the talent and energy of Nathan Meyer Rothschild to ensure that the British army on the continent was paid. Despite periods of extreme political stress, financial confidence was never broken. Parts of industry thrived, trade flourished, infrastructure investment continued. The British economy finished the war in a healthy state, although the economic impact of financing the war had very long-term political effects.