How did the UK's response to the global financial crisis of 2008 impact its political and economic policies?

The UK's response to the global financial crisis of 2008 had a significant impact on its political and economic policies. The crisis was caused by a combination of factors, including the collapse of the US housing market, the subprime mortgage crisis, and a decline in the global economy.

The UK government responded by bailing out several of its largest banks, including the Royal Bank of Scotland and Lloyds Banking Group, and implementing several measures to stabilize the economy. One of the most significant measures was the introduction of quantitative easing (QE), which involved the Bank of England purchasing government bonds to inject liquidity into the economy.

From a political perspective, the crisis had a profound impact on the Labour government, which was in power at the time. The government's response to the crisis was criticized for being too slow and inadequate, and this contributed to their defeat in the 2010 general election. The Conservative government that came to power in 2010 implemented a series of austerity measures aimed at reducing the country's deficit, which had grown significantly during the crisis.