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Drawing on neo-Gramscian theories of international political economy, this text explores the impact of the Marshall Plan on labour and government in Britain. Rather than the US imposing a "politics of productivity" on an unwilling government, the centre right of the Labour Party used the Marshall Plan to achieve its own political ends. The author shows how the government was able to marginalize the left to create a pattern of state labour politics that was to endure until the end of the 1970s.