A radical post-war Labour Government under Clement Atlee set about a programme designed to remove the inequality between rich and poor and redistribute wealth. The Government nationalised much of the country's infrastructure and increased death duties and personal taxes, so that the base rate was 33 per cent, moving up in 5 per cent bands to 83 per cent. Investment income commanded an extra slice of 15 per cent on top of the top slice of tax, so effectively some people paid tax at 98 per cent. In fact it was not until 1979, when Margaret Thatcher came into power, that this top band of 83 per cent was reduced to 60 per cent, and then to 40 per cent in 1988.
The effect of all of this was a redistribution of wealth from the upper classes to the lower classes. In terms of its effect on marketing, this was profound. The implication was that goods hitherto classed as luxury products became utility products and were necessary in order to live a modern lifestyle