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The subject of this study is the evolution of British public policy between 1900 and 2010 with to the special focus on budgetary, monetary and social policy, as well as policy towards the public sector. This period was characterized by a steady, yet non-linear rise in economic and social activity of the state. Sudden increases were caused by one of three categories of events: wars, economic crises and changes at the highest levels of government. As a result, the history of British public policy in between 1900 and 2010 is divided into the following stages: 1) 1900-1931 - decline of the liberal era; 2) 1931-1951 - steady increase in the state's economic activity; 3) 1951-1979 - systemic stabilization at a high level of state involvement in economic and social issues; 4) 1997-2007 - attempt to return to economic liberalism; 5) 2007-2010 - a period of volatility and the search for new public policy principles.