Brexit promised sovereignty—but at what cost to Thatcherite free-market principles? Explore the Conservative Party’s struggle to align Hayekian economics with post-Brexit nationalism

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In the 1980s, Margaret Thatcher championed Britain as a globally competitive, liberal economy. Her economic vision, heavily influenced by Friedrich Hayek, focused on deregulation, open markets, and minimal state interference.

But in post-Brexit Britain, the Conservative Party has shifted toward economic nationalism. This raises a fundamental question: can sovereignty and free-market globalism coexist?

Thatcher’s Global Economic Vision

Thatcher’s reforms were not inward-looking. She sought to integrate the UK into global capital flows, championing enterprise and liberalised trade. These values were central to her Hayekian belief in rules-based order and individual economic freedom.

Brexit and the Shift Towards Economic Nationalism

Brexit was sold as a reclamation of control. But in policy terms, this has often translated into industrial strategy, tariffs, and targeted subsidies. The tone has shifted from deregulation to protectionism.

Hayekian Principles in the Post-Brexit Context

Hayek warned against central planning and the politicisation of economic outcomes. In today’s context, the return of state-led economic engineering — in the name of sovereignty — directly contradicts these principles.

Reconciling Sovereignty with Global Markets

• Embrace smart globalisation: Design trade policy around open but fair rules.
• Boost domestic competitiveness: Invest in skills, tech, and regional dynamism.
• Maintain regulatory restraint: Avoid overreach that stifles innovation and deters investment.

Conclusion

Brexit offered a clean break — but without a coherent economic vision, it risks becoming a drift toward populist statism. If the Conservative Party wants to revive its Hayekian legacy, it must prove that sovereignty and openness can coexist.