“Anglo American” capitalism is premised on the idea of a flexible and unfettered free market economy. Yet the dominant trend in the British economy in the Twentieth Century was one of centralisation. Throughout the period from the beginning of the First World War to the early 1980s, the main trend in economic policy was of centralisation and the rejection of free market capitalism for a centralised and increasingly planned economy. The role of the small firm was not even acknowledged until 1972 and it took a further ten years before any major initiative. This paper seeks to explain the exclusion of the small firm from the British economy. It examines how a combination of key events, new ideas and broadly held perceptions of incompetent businessmen led to the representation of society in economic policy decisions as being almost exclusively as organised labor. Unlike continental Europe, where small firms formed an important part of the state forming bargains of the 1920s, UK small businesses were anachronistic to British society until a greengrocer’s daughter became Prime Minister in 1979.