The process of privatisation, especially the preparation of nationalised industries for privatisation, was associated with marked improvements in performance, particularly in terms of labour productivity.[92] But it is not clear how far this can be attributed to the merits of privatisation itself. The "productivity miracle" observed in British industry under Thatcher was achieved not so much by increasing the overall productivity of labour as by reducing workforces and increasing unemployment.[93] A number of the privatised industries, such as gas, water and electricity, were natural monopolies for which privatisation involved little increase in competition. Furthermore, the privatised industries that underwent improvements often did so while still under state ownership. For instance, British Steel made great gains in profitability while still a nationalised industry under the government-appointed chairmanship of Ian MacGregor, who faced down trade-union opposition to close plants and more than halve the workforce.[94] Regulation was also greatly expanded to compensate for the loss of direct government control, with the foundation of regulatory bodies like Ofgas, Oftel and the National Rivers Authority.[95] Overall, there was no clear pattern between the degree of competition, regulation and performance among the privatised industries.[96] While the output and profits of the privatised companies grew, margins increased, and employment declined, the exact relationship of these changes to privatisation is uncertain.[97]
Many people took advantage of share offers, although many sold their shares immediately for a quick profit and therefore the proportion of shares held by individuals rather than institutions did not increase. By the mid 1980s, the number of individual stockholders had tripled, and the Thatcher government had sold 1.5 million publicly owned housing units to their tenants.[62]
The privatisation of public assets was combined with deregulation of