Following the Second World War a consensus between the main political parties developed. There was a climate of co-operation between Labour and Conservatives following their coalition government during the war and the parties agreed in certain key areas. Both parties accepted Keynesianism, an economics system that bridged Capitalism and socialism, arguing for full employment brought about by government intervention in the economy. There was cross-party support for the report by William Beveridge calling for a "Welfare State".
The Labour government of 1945, led by Clement Atlee introduced policies in six key areas, which became the foundation for the post-war consensus. These were - the commitment to full employment, using Keynesian economic ideas to achieve it, to have a mixed economy, including both publicly and privately owned industries, the introduction of a "Welfare State", with the establishment of the NHS and benefits for those in need, the formalisation of links with Trade Unions, involving them in policy making, the commitment to reducing the gap between the rich and poor and to help regions with economic problems. The commitment to NATO and to make Britain a "nuclear" power, maintaining close ties to America.
In 1951 the Conservative Party was elected and although there were some minor changes, they continued the policies of the previous Labour Government. They only had a very small majority and so had to rule out any unpopular policies. This meant keeping most of Labours policies. The Conservative Party leadership was moderate and the more right-wing MPs were marginalised. The Tories therefore had no choice or indeed no desire to change the policies started by Labour. .
The consensus policies had remained unchallenged until the 1970's when they began to be put under pressure. When Edward Heath came to power in 1970, he did so with a commitment to more right-wing policies, such as curtailing the power of the Unions, reducing state control of industry and promoting the free market.