The modern social history of the United Kingdom (1979–present) began with Conservative Prime Minister, Margaret Thatcher (1979–1990) entering government and rejecting the post-war consensus in the 1980s. She privatised most state-owned industries and worked to weaken the power and influence of the trade unions. The party remained in government throughout most of the 1990s albeit with growing internal difficulties under the leadership of Prime Minister John Major (1990–1997).

The "New Labour" premiership of Tony Blair (1997–2007) accepted many of Thatcher's economic policies, but he presided over a period of relative economic prosperity. Hong Kong, the most prosperous and the last significant overseas territory was handed back to China in 1997, ending 156 years of British rule and the symbolic end of the empire. Blair's government grew unpopular after 2002, in part due to Britain's participation in the war on terror and, most controversially, the Iraq War. The brief premiership of Gordon Brown (2007–2010) was predominantly defined by a series of crises including the 2008 financial crisis and its consequences.

The Coalition government (2010–2015) formed by David Cameron and Nick Clegg introduced a deficit reduction programme primarily via cuts to public spending. In 2014, a referendum on Scottish Independence was held where the electorate in Scotland voted by 55/45% to remain within the United Kingdom. Winning a majority in 2015, the conservatives held a referendum on the UK's membership of the EU the following year where the UK voted by 52/48% to leave the organisation. The premiership of Theresa May (2016–2019) was defined by the UK's withdrawal from the EU which was completed under the premiership of Boris Johnson (2019–2022); his government was also defined by the COVID-19 pandemic.

Other shifts in the UK during the late 20th and early 21st century include the rise of the internet with computerised technology taking an ever greater role in most aspects of life, rising enrolment in further and higher education among older adolescents and young adults, as well as a diminishing interest in politics with 21st century elections seeing consistently lower turnout than their 20th century counterparts. The New Labour era and current period of consecutive conservative or conservative led governments have seen the devolution of substantial powers to Wales, Scotland, Northern Ireland and, to a lesser extent, parts of England.

Thatcher's Britain

Margaret Thatcher was the dominant political force of the late twentieth century, often compared to Churchill and David Lloyd George for her transformative agenda commonly referred to as "Thatcherism". She was Leader of the Conservative Party from 1975 to 1990, and prime minister from 1979 to 1990. She was often called the "Iron Lady" for her uncompromising politics and leadership style.

Political analyst Dennis Kavanagh concludes that the "Thatcher Government produced such a large number of far-reaching changes across much of the policy spectrum, that it passes 'reasonable' criteria of effectiveness, radicalism, and innovation".

The Labour Party under James Callaghan (1976–79) contested the 1979 general election as unemployment passed the 1,000,000 mark and trade unions became more aggressive. The Conservatives used a highly effective poster created by advertisers Saatchi & Saatchi, showing an unemployment queue snaking into the distance, carrying the caption "Labour isn't working". The Conservatives received 43.9% of the vote and 339 seats to Labour's 269, for an overall majority of 44 seats at the 1979 general election. Labour was weakened by the steady long-term decline in the proportion of manual workers in the electorate. Twice as many manual workers normally voted Labour as voted Conservative, but they now constituted only 56% of the electorate. When the Labour Party led by Harold Wilson narrowly won the 1964 general election, manual workers had accounted for 63%. Furthermore, they were beginning to turn against the trade unions – alienated, perhaps, by the difficulties of the winter of 1978–9. In contrast, Conservative policies stressed wider home ownership, which Labour refused to match. Thatcher did best in districts where the economy was relatively strong and was weaker where it was contracting.

Thatcherism

As prime minister, she implemented policies focused on economic liberalism, using populism, and pragmatism, known as Thatcherism. Thatcher introduced a series of political and economic initiatives intended to reverse high unemployment and Britain's struggles in the wake of the Winter of Discontent and an ongoing recession. Her political philosophy and economic policies emphasised deregulation (particularly of the financial sector), flexible labour markets, the privatisation of state-owned companies and reducing the power and influence of trade unions. Due to recession and high unemployment, Thatcher's popularity during her first years in office waned until the beginning of 1982, a few months before the Falklands War. The afterglow of her victory at that war produced a resounding victory at the polls. She was re-elected in 1983 with an increased majority.

Privatisation was an enduring legacy of Thatcherism; it was accepted by the future Labour ministry of Tony Blair. Her policy was to privatise nationalised corporations (such as telephone and aerospace firms). She sold public housing to tenants, all on favourable terms. The policy developed an important electoral dimension during the second Thatcher government (1983–87). It involved more than denationalisation: wider share ownership was the second plank of the policy. Thatcher advocated an "enterprise society" in Britain, especially in widespread share-ownership, personal ownership of council houses, the marginalisation of trade unions and the expansion of private healthcare. These policies transformed many aspects of British society.

Thatcher was re-elected for a third term in 1987, although Labour made gains under the new leadership of Neil Kinnock compared to their landslide defeat at the previous election. During this period, her support for a Community Charge (popularly referred to as the "poll tax") was widely unpopular (especially in Scotland where the tax was enforced one year earlier than the rest of the country) and her negative views on the European Community were not shared by others in her Cabinet. She lost support from Conservative MPs and resigned as Prime Minister of the United Kingdom and Leader of the Conservative Party in November 1990.

Cultural movements Environmentalism as a major public issue was brought to the forefront by Thatcher in 1988, when she included a manifesto warning about climate change. The environmentalism movements of the 1980s reduced the emphasis on intensive farming, and promoted organic farming and conservation of the countryside.

Protestant religious observance declined notably in Britain during the second half of the twentieth century. Catholicism (based on the Irish elements) held its own, while Islam grew rapidly due to immigration from Asia and the Middle East as well as higher birth rates from that sector of the general population. Church of England attendance particularly dropped, although charismatic churches like Elim and AOG grew. The movement to Keep Sunday Special seemed to have lost at the beginning of the 21st century.

LGBT rights under Thatcher

Although "homosexual acts" had been partially decriminalised for consenting men over the age of 21 in England and Wales in 1967 (Sexual Offences Act 1967), it was not until the Criminal Justice (Scotland) Act 1980 that the same happened in Scotland. That same year, the documentary A Change of Sex aired on BBC2, which enabled viewers to follow the social and medical transition of Julia Grant, and provided a snapshot of the Gender Identity Clinic at Charing Cross Hospital in London. The Self Help Association for Transsexuals (SHAFT) was also formed as an information collecting and disseminating body for transgender people, The first Black Gay and Lesbian Group was formed in the UK. and Lionel Blue became the first British rabbi to come out as gay. The UK's first television series specifically aimed at a gay audience was broadcast on London Weekend Television, called Gay Life.

In 1981, the European Court of Human Rights in Dudgeon v United Kingdom struck down Northern Ireland's criminalisation of homosexual acts between consenting adults the Homosexual Offences (Northern Ireland) Order 1982 later partially decriminalised "homosexual acts" in Northern Ireland. The next year, Chris Smith, says: "My name is Chris Smith. I'm the Labour MP for Islington South and Finsbury, and I'm gay", making him the first openly out gay politician in the UK parliament."From Section 28 to a Home Office float – Tories come out in force at gay march", The Guardian, London, 3 July 2010 The Politics of Bisexuality conference in 1984 signaled the growth of separate bisexual community organising. Lesbians and Gays Support the Miners, a campaign of LGBT support for striking workers in the miners' strike of 1984 and 1985, was launched. In 1988, Princess Margaret opened the UK's first residential support centre for people living with HIV and AIDS in London at London Lighthouse.Spence C (1996), 'On Watch: Views from the Lighthouse', Cassell, p.36

In July 1990, following the murders in a short period of time, of four gay men, hundreds of lesbians and gay men marched from the park where Boothe had been killed to Ealing Town Hall and held a candlelit vigil. The demonstration led to the formation of OutRage, who called for the police to start protecting gay men instead of arresting them. In September, lesbian and gay police officers established the Lesbian and Gay Police Association (Lagpa/GPA). The first gay pride event was held in Manchester. Oranges Are Not the Only Fruit by Jeanette Winterson, a semi-autobiographical screenplay about her lesbian life was shown on BBC television. Justin Fashanu became the first professional footballer to come out in the press (he subsequently committed suicide). The Crown Dependency of Jersey decriminalised homosexuality.

AIDS The first UK case of AIDS was recorded when a 49-year-old man was admitted to Royal Brompton Hospital in London suffering from PCP (Pneumocystis carinii pneumonia). He died ten days later.Dubois RM (1981), 'Primary Pneumocystis Carinii and Cytomegalovirus Infections', the Lancet, ii, 1339 Terry Higgins died of AIDS in St Thomas' Hospital in London, and his friends and partner Martyn Butler set up the Terry Higgins Trust (which became the Terrence Higgins Trust), the first UK AIDS charity. In 1983, Britain reported 17 cases of AIDS;World Health Organization (1983), 'Acquired Immune Deficiency Syndrome Emergencies, Report of a WHO Meeting, Geneva 22–25 November' gay men were asked not to donate blood.Gunson HH (1986) 'The blood transfusion service in the UK', in Proceedings of the AIDS Conference 1986, edited by Jones P., Intercept, p.91-100 The next year, Britain reported 108 cases of AIDS with 46 deaths from the disease.Department of Health & Social Security (1985) 'Acquired Immune Deficiency Syndrome, general information for doctors', May