All the liberal democracies of north-western Europe, with the exception of Great Britain and neutral Sweden, underwent occupation by the enemy. Alone amongst them to have a government that collaborated with the Germans was France: all the other governments sought refuge in Great Britain and carried on the war as best they could. Everywhere the occupying powers met with stubborn resistance.

Almost the whole of the British people accepted resolutely, from the very outbreak of the war, the entire gamut of those measures which, having been tried out during the Great War, were now reintroduced. Very wide powers were accorded to the government, new ministries and departments were created, but the control exercised by parliament was never interfered with, and the liberty of individual citizens was consequently always upheld. The nation's economic life was very strictly controlled in order to avoid the waste of manpower and materials, as well as to equalise living conditions as much as possible. Universal rationing high taxes on unessential goods, the control of wages and of working conditions—such measures made it possible to maintain national unity in an atmosphere of goodwill and fraternity to a degree unknown during the Great War.

Furthermore the Cabinet formed by Winston Churchill in the darkest days of 1940 included six Labour members of parliament of whom two were members of the War Cabinet; their presence did not lead to the passing of any specifically Socialist legislation, but it was a guarantee that strict control was kept on all the national undertakings including banks and private enterprise.