The report of the working group on inequalities in health, chaired by Sir Douglas Black, found that people in lower social groups suffered higher rates of mortality.
The government started to encourage the privatisation of ancillary services such as cleaning and laundry by sending a letter to health authorities encouraging them to tender contracts.
The Royal Commission on the National Health Service, chaired by Sir Alec Merrison, aimed to consider the best use and management of the financial and human resources in the NHS.
Margaret Thatcher becomes Prime Minister, following an election manifesto suggesting the government would simplify and decentralise the health service to cut back bureaucracy.