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This paper involves an examination of public sector managers attitudes and reported behaviour, based on a longitudinal UK study, which broadly corresponds with the so‐called ‘Thatcher Years’. In Britain, the ‘Thatcherite critique’ of public enterprise has been fundamental in its consequences with ideological, economic and industrial relations components which are interrelated but which have had varying priorities attached to them at particular points in time. Above all, public ownership has been opposed because it has been seen to involve the government in economic functions which were considered properly to lie with individuals in the private sector. More specifically, too, public sector enterprises have been seen as inherently bureaucratic, as ‘crowding out’ enterprise, as being inefficient and costly and because of their monopolistic position (and consequent insulation from market and performance pressures) as being the seedbed of trade union power.

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