
The onset of the 1980s was a period of economic and political instability in the UK with rising unemployment and a sizable inflationary hang-over from the late ‘70s, largely owing to rising raw material costs. In an effort to ease these inflationary pressures, the government tightened its fiscal and monetary policies, leading to a material fall in consumer demand. Coupled with widespread industrial decline, this resulted in economic growth slumping to -2% in 1980, remaining in negative territory the following year.