The transformation of fiscal reform: reciprocity, modernization, and the fiscal debate within the business community in early Twentieth-Century Britain

The debate over Free Trade was central to modern British history. This essay shifts attention from party politics to the changing discourse and perception of state and economy within the business community. It distinguishes three phases in the erosion of liberal political economy: reciprocity, defensive tariff reform, and modernizing protectionism. An analysis of the changing argument for protection points to the emergency of a new politico-economic settlement in the age of war and coordinated capitalism. The Free Trade culture of individualism and market was displaced by a new economic vision of combination and regulation. In political culture, however, state and economy continued to be viewed as separate spheres. Instead of a corporatist system, the new settlement between state and business was marked by a dissociation of economic from political pluralism