The role of foreign-based enterprises in the British economy, and policy towards foreign multinationals, has been of considerable interest ot successive UK governments. This paper examines the early evolution of policy, prior to the second World War.

The retreat from economic liberalism between the wars and growing government intervention in domestic and international economic policy widened the scope for business organisations to shape national policy. Although in the early 1920s business had been divided over tariffs, protectionaist...