geoisie in the factory towns of the North and Midlands had a brief moment of
cultural and social self-confidence in the mid-Victorian period, as the heroes of
Samuel Smiles’ Self Help and the critics of the landed aristocracy. But in the late
nineteenth century – so the argument runs – they were culturally and politically
marginalised by a new social elite, created by a fusion between the prestige of
land and the wealth of finance based in London and the South-East. The result,
in the opinion of Michael Thompson, was the absence of a confident urban
elite: the social structure of towns lacked an ‘upper storey’, and the civic splen-
dour of the mid-Victorian period was a mere hint of what might have been.
118
How far should this account be accepted?
A regional divide between an industrial North and a service economy in the
South is clear from Gilbert and Southall’s chapter. The service and commercial
economy was highly successful. Although Britain dominated world trade in
manufactures between and , over half the new jobs created over the
period were in the service sector.
119
And the productivity of the service sector
was impressive, compared with the experience in Germany. In the case of man-
ufacturing and construction, German labour productivity caught up with the
level of the United Kingdom by the early twentieth century; in utilities and
transport, Germany pulled far ahead. But Britain retained, and even widened,
its advantage in distribution and finance, and professional and personal services.
These trends had a significant urban dimension, which cannot be understood by
a simple division of towns between industry and finance or services. There were
also important interconnections, with considerable significance for the urban
economy.
Utilities were overwhelmingly urban, and their comparative performance may
be understood in terms of different patterns of political control. British towns
were more successful than their German counterparts in the mid-nineteenth
century in resolving the problems of investment in the urban infrastructure, but
this advantage was eroded at the end of the century. British cities encountered
problems in raising finance for large-scale investments from about , as a
result of competition with overseas loans and the failure to reform urban
Introduction
118
For example, W. D. Rubinstein, ‘Wealth, elites and the class structure of modern Britain’, P&P,
(), –; P. J. Cain and A. G. Hopkins, ‘Gentlemanly capitalism and British overseas
expansion, : new imperialism, –’, Ec.HR, nd series, (), ‒; Y. Cassis,
‘Bankers in English society in the late nineteenth century’, Ec.HR, nd series, () ‒;
F. M. L. Thompson has made the case in a number of places, including ‘Introduction’, Rise of
Suburbia, p. ; The Rise of Respectable Society (London, ), pp. , , ; ‘The landed aris-
tocracy and business elites in Victorian Britain’, in G. Delille, ed., Les noblesses européenes au XIXe
siècle (Rome and Milan, ), pp. –, , –; ‘Town and city’, in Thompson, ed., The
Cambridge Social History of Britain, –, vol. : Regions and Communities (Cambridge, ),
pp. –, ,
119
Below, p. ; C. H. Lee, ‘Regional growth and structural change in Victorian Britain’, Ec.HR,
nd series, (), .
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