Vassal State: How America Runs Britain

by Angus Hanton

'Provocative and detailed ... Excellent' The Telegraph

'Shocking and meticulous' Danny Dorling

'An eye-opening revelation ... a must-read' Joel Bakan

British politicians love to vaunt the benefits of the UK's supposed 'special relationship' with the US. But are we really America's economic partner – or its colony?

Vassal State lays bare the extent to which US corporations own and control Britain's how American business chiefs decide what we're paid, what we buy, and how we buy it. US companies have carved up Britain between them, siphoning off enormous profits, buying up our most lucrative firms and assets, and extracting huge rents from UK PLC – all while paying little or no tax. Meanwhile, policymakers, from Whitehall mandarins to NHS chiefs, shape their decisions to suit the whims of our American corporate overlords.

Based on his 40 years of business experience, devastating new research, and interviews with the major players, Angus Hanton exposes why Britain has become the poor transatlantic relation – and what we can do to change it.

Genres: Politics, Nonfiction, Economics, History, Audiobook, British Literature, Business

312 pages, Kindle Edition

Published April 11, 2024

Reviews

[Julian Worker · Rating 5 out of 5]

Superbly uncomfortable reading for people from the UK, whose country is being taken over by American companies in many different ways, all of which are documented in this book.

The research is superb and the measures to counter this situation are straightforward to enforce.

When in 2016 Britain opted to take back control from Europe, this vote did reduce European influence, but introduced greater American ownership and control of Britain. A majority of all the assets held by US corporations in the continent of Europe, are in the UK. The book shows how recent British Prime Ministers and Chancellors have sold out their country and what has to be done to avoid a historic bankruptcy of Britain and take back control from the Americans.

Basically any predominantly British-listed company , with one or two exceptions...is vulnerable to a takeover offer in a way that doesn't apply elsewhere in the world.

[Angus Hanton · Rating 5 out of 5]

Excellent book. A must read as well as a good read

[R · Rating 2 out of 5]

The underlying theme of the book that Britain is essentially an economic enclave of the American Economy is completely true, as it the fact that trade is about choices and trade-offs and Britain at this point in time has yet to reconcile with that trade-off. We have taken back control from Europe only to give that contract back to the Americans. However, I think this is a very poorly written book, as it completely fails to provide the other perspective that potentially staying close to the American economy is a good thing.

1. How long can the UK economy continue to see the bulk of its most impressive businesses owned by Americans, and the suppliers of those businesses also owned by the Americans? Recent analysis suggests that of all the assets owned in Europe, 50% are in the UK. This means that the UK economy essentially pays royalties to the US economy, as it buys $700bn of goods and services from the Americans (25% of GDP). What is even more astonishing is that a lot of those sales are then registered by US firms in low tax havens such as Luxembourg and Ireland meaning that not only are we buying a huge number of goods from the US, but we are doing so pretty much tax free.

2. Americans tend to invest in the UK because the margins they can get on their investments are so impressive partly because of a lack of competition, but also because a lot of the supply chains are also American owned. The concept of “toll bridges” is also now common place, i.e creating bridges that consumers have to cross before being able to access a product. Microsoft being embedded into products meaning that you cannot use competitors, or AirBnB to find a property.

3. The above two points then neatly bring up the issue of FDI, something that UK governments like to extol. FDI can take the form of either foreign investment in physicals plans and technologies, or foreign purchases of existing companies. US buyers, in particular private equity have been predominantly taking part in the latter activity, something which supported by the huge cluster of US banks in London, and the overall strength of Britain’s financial services who are hungry for fees. In some ways the dominance finance in the UK is to the detriment of the manufacturing sector, as it strengthens the pound which makes manufacturing exports more expensive. FDI has reached such confusing levels that the ONS now does not publicly report the difference between investment and buyouts, but using land registry, around $2trn of capital stock is owned by the US, around 60% of the UK economy. This ownership then translates into the other benefits associated with being in the UK such as claiming R&D credits, which US firms receive lots of.

4. On the rare occasion that UK companies buy from the Americans, it is often from PE firms who have used leverage to juice up returns. Take LSEG’s purchase of Refinitiv which Blackstone bought for $17bn, but $14bn of which was debt. After altering the organisational structure and changing its name from TR, it sold it for $27bn in just three years producing a return ex leverage of 60% and 330% with debt.

5. US economic dominance also translates into monopoly, a fact no better demonstrated then in COVID when US big pharmaceutical companies created by far the most advanced vaccines, and could charge the UK economy a huge amount for doing so. AstraZeneca promised to produce their vaccine at cost, but in the end lost out on the stock it created for the UK government as it was never purchased because the US pharmaceutical companies controlled a number of NHS suppliers, many of whom would only work with the US vaccine. The same scenario could very well play out across other sectors including waste where BIFFA is now US owned, meat, where a large number of meat processors are also American. A lot of our finest art is also owned by the Americans.

6. The final most disturbing is the way the American universities now identify top talent in the UK’s best private schools, where because of domestic pressure universities now have EDI pressure, most publicly children are now are happy to go to the elite US universities, create a brain drain in Britain. One example is Dulwich Colleague where prospective student are flown by the universities to the US. The reality is that as Jane Frazer alluded to in her Norges interview, the US is so much more meritocratic that the UK, not to mention that the US just works harder than Europe.

[Katie · Rating 5 out of 5]

Not a perfect book, but I'm giving it 5 stars because I think the message is very important.

It's easy to read and really engaging. I finished it in under a week. It also has absolutely tonnes of examples. So many that it sometimes feels like we are only skimming the surface, and I'm sure a lot more could be researched and written on this topic. It's incredibly sobering to think how much daily spend in our lives goes to just a few US corporations. It will definitely change my buying habits.

The chapter I took issue with was The American Way. I have the feeling the bulk of time taken researching this book went into gathering stats and examples, and not enough (imo) went into critically analysing HOW the US ended up so ‘successful’ compared to the UK. In this chapter quotes from some of the wealthiest men alive are presented at face value, claiming that they achieved their wealth through working long weeks, without even a passing acknowledgement of the immense luck and privilege they enjoyed. Thomas Edison is presented as a brilliant inventor, without commenting on how many of his ‘inventions’ were not new. The long hours and meager holidays American workers have are presented as positive, which is baffling to me in a book that seems otherwise pro-worker. Nothing is said about how even basic American healthcare is tied to employment, creating an incredibly toxic work ethic which the wealthy can exploit. I have worked in the US, the UK, and South Korea, and no culture is more or less hardworking. Workers are simply exploited as far as the companies are legally allowed to exploit them. If working 120 hour weeks made billionaires there would be so many more of them all around the world. This chapter overall felt like a strange outlier in both depth of analysis and theme.

Overall though, I would absolutely recommend this book. I think there's a lot more to be discussed on this topic and I look forward to further research and journalism in this area.

[Peter Bennett · Rating 4 out of 5]

I was quite pleasantly surprised to find the audiobook for this available on spotify. This book had been on my reading list for a while but what spurred me into actually reading it was Keir Starmer's refusal in February 2025 to call out the American president on his threats to annex Canada. It was quite startling to see a British prime minister be so meek in response to the possibility of a British Dominion being absorbed by the US. Churchill is certainly turning in his grave.

Hanton shines a light on just how much of the British economy is controlled by American firms. He's clear that there isn't a grand American conspiracy to take over Britain economically, however, that is what has resulted from the UK's openness to foreign takeovers of its businesses.

I agree with Hanton's argument that it's of the utmost importance that strategic and sensitive assets remain in domestic hands. Hanton strikes me as a Conservative so it was interesting to see how critical he was of Thatcher towards the end of the book. He blames Thatcher's essentially blind devotion to privatization for paving the way for US encroachment. I am inclined to agree with him.

[Milos Kosanovic · Rating 5 out of 5]

This is the book to read if you want to easily understand the complete submission the UK sacrifices towards the US. Not a long book at all, yet it manages to mention the numerous tactics used the US companies in exerting control over British domestic business whether that is through ownership of the farms or even the NHS and Covid-19 supplies, I found this quite shocking and surprising. Nevertheless the information is readily accessible, I would definitely recommend the book, it will change your view towards America’s business policy concerning the United Kingdom.

[Eddie · Rating 4 out of 5]

Quite a depressing read to be honest. Very well reserched and evidenced about a really significant problem in Britain that isn't being discussed. We are approaching the point where Washington will be the dominant economic power in Britain, and thus we will not be in charge of our own economic decisions, which will limit our political power at home. Insightful, a bit scary.

[Anatolikon · Rating 3 out of 5]

A solid three and a half stars for some good work showing the extent of American economic interpenetration of Britain, but which could have been taken further. Further quibbles include American platform capitalism and private equity all lumped together as the American way of doing business, which is fine but it's set against British and contintental business culture that is in no way unpacked. The author pines for a kinder British capitalism but never defines what that might look like. A longer historical perspective is also needed: there are hints that the mass influx of US capital dates after the Brexit vote but also evidence is presented going back at least to the end of WWII. What are the longer-term trends? It also grates more than a little that American businesses are constantly to blame for many things (and I don't disagree with the author on this!) but the British politicians who let them have to wait until the end of the book to get any discussion, and that discussion is quite brief.

There's good material here, but the analysis could have been so much deeper.

[Anders Rees · Rating 4 out of 5]

Scary reading chaps

[Ed Qureshi · Rating 5 out of 5]

Highly recommend. UK companies are increasingly driven by overseas interests but never any wider conversation on this point. It is understandable that more value can be created from acquiring underperforming UK enterprises. Is it always in Britain’s interest to allow acquisitions to proceed in high value and/or strategic areas such as electronics, defence, tech etc.?

[Tajinder Singh Kang · Rating 5 out of 5]

One of the best books I’ve read this year, we often talk about colonialism in a historical context but what the US is doing to the UK is nothing short of modern colonialism. The book accurately describes the uk’s vassalage to the US in all areas including defence, the NHS, Technology , finance and politics superb reading for anyone interested in the “special relationship”. The book describes, how actively American politicians can overturn the uks political and economic sovereignty at whim and how our political class not only lets its It happen but actively encourages it. Excellent and well written.

[Stephen · Rating 4 out of 5]

Readable and, in its central premise, convincing analysis of the distressing degree to which UK assets are now controlled by US corporations. I have to admit an interest, as I’ve worked with small UK tech companies that were bought by American companies — and I’ve profited from the process. This was in the science software market, something of a specialist niche, whereas Hanton focuses on much more significant large corporations - particularly the tech giants - and US domination of big consumer, healthcare, and manufacturing markets. Still, there’s a relevant question in my experience for Hanton to address - I’d have preferred our acquirers to be British or European, so why weren’t they?

In large parts, of course, the answer is money. A lot of Hanton’s argument, it seems to me, ultimately comes back to stating the age old observation that, in capitalist systems, capital tends to concentrate in the hands of the largest players. It’s much easier to observe that fact than to change it - though the response(short of switching to a non-capitalist system) must lie in forms of regulation, including taxation to ensure that the spoils of fixing markets in your favour are shared. Hanton is good on the avoidance of tax in globalised markets, and he does have a few suggestions at the end of the book to regulate the sell-off process which seem reasonable, though against the weight of evidence in the rest of the book, they feel like tiny turns that might tweak the direction of the metaphorical oil tanker, rather than turn it around.

One issue in my experience, which Hanton doesn’t really identify, is that the culture of US companies might actually be a better match for many UK companies at the point where they look to be acquired. Those companies might be attracted by a sense of dynamism and flexibility, which US companies often project, because the reasons for sale are usually either crisis or a sense that the business has reached a point where it needs outside support and energy to get to the next level. A lot of the European or (if they even exist any more) British options with money to invest come across as lumbering behemoths - the Americans simply tell a better story. Hanton doesn’t really look at what you might call the more ‘positive’ reasons for US success in acquisition.

He focuses more on US business practices and how these allow them to scale, dominate, and succeed. Again, he does a good job here and is rightly critical of a lot of those processes - showing how many of them, though perfectly legal are, at best, morally dubious exercises in applying market power. That said, I didn’t always feel he was quite ‘on topic’ here, in that a lot of this becomes a discussion of what it (unfortunately) takes to succeed in today’s big tech market, which (though related) isn’t quite the same thing as analysing why UK assets end up being owned by the Americans.

His idea is, perhaps, that if we somehow found a different way to do technology business successfully, and invested in it as a country, we would loosen the American grip. That sounds good, but feels like a big ask. The issue of values also raises another fundamental issue with the focus of this book, which Hanton acknowledges right at the end. The UK has actively encouraged “foreign direct investment” (FDI) globally and, while the US tranche is by far the largest, much of this comes from other sources that raise (at least pre-second-term-Trump) even more serious questions of values - for example, money from Russia or Middle Eastern petro-states.

Ultimately, though, Hanton seems right to warn against the longstanding uk governmental assumption that FDI is in itself a good thing, to urge a more clear-eyed regulation and taxation of such investment, and to suggest better partnership with Europe to build up investments in innovation capacity that can maintain their independence. He doesn’t, unfortunately, dispel the sense that it might be too late.

Definitely worth a read if these issues interest you.

[Fuzzy Dunlop · Rating 4 out of 5]

It’s impossible to describe how infuriating this book is to read. Without hyperbole, the UK is possibly the worst-run country (if you can even classify it as a sovereign country at this point) in the entirety of the universe and is ran by a class of political elites who are so remarkable in their idiocy, that in the absurdist reality of 21st-century existence it makes total sense for them to run such a downtrodden state.

At times I found the Vassal State dragged on, and at other times it was like American Psycho just endlessly naming companies and stating where they’re from. However, this is all ultimately the point, and it’s a point that is not discussed whatsoever in the mainstream of British politics. The signs are sometimes implicit in the case of British ‘attempts’ at establishing a coherent and independent foreign policy, but in terms of ‘private’/corporatist economics and thus influence? Not at all.

I purchased my copy of Vassal State on release day at my local Waterstones (with its quintessentially-quintessential British name), but sure enough, its ownership links back to private equity, more specifically, Elliott Investment Management L.P., based in New York City.

Lastly, did you know that the UK government derives 80% of its tax revenues from individuals, whilst corporations comprise less than 8%? (p.137-138).

4.5/5

[edit: 9 April 2025]: with the government’s announcement today that Universal Studios were going to build a theme park in Bedford, this book only continues to grow in relevance. I’m far from a patriotic person, but at least Camelot theme park was marketed on some ethos of British mythology.
(If we want to get Baudrillardesque here, can consider Harry Potter; a British book series written by a (talentless, transphobe) British author. At Universal (Bedford) this ‘Britishness’ will be sold back to, mostly British, consumers through an American corporate lens of what Britain is like through the form of Harry Potter rides and memorabilia. Kinda bizarre, right?)

[Steve · Rating 5 out of 5]

Great read. The laissez-faire economic policy of the UK government has meant that the family silver is meekly surrendered to predatory US firms.

This in turn leads to millions of tax dollars/pounds being declared outside of the UK.

Calling the UK a world-beating country id a bad joke. The UK needs to be more honest with itself.

[Michael · Rating 4 out of 5]

A must read

[Alexander · Rating 5 out of 5]

Very good, this is my new grand theory for everything that's wrong with the UK

[Ed · Rating 5 out of 5]

An absolute eye-opener into the UKs increasing reliance (and subservience!) to the US, both visible and invisible, seemingly without a care by politicians and leaders.

[Terje Høvik · Rating 5 out of 5]

Fantastic book. I listened to the audiobook version via my audible account subscription🙃

[Filip Mlody · Rating 5 out of 5]

Oof, that was a tough read, but I will have to recommend it to my UK friends as it brings a lot to the discussion on why the cost of living crisis is hitting the UK harder than the rest of Europe and why there isn't a lot of hope for a quick change.

The long-term future of Britons not working in high-yield service jobs (finance, law, tech, and a few others) really doesn't look great, and even the advice on course correction presented in this book doesn't seem realistic.

It is not an easy position to stomach, but it is something that needs to be brought to light, to the public debate, as most Britons are most likely unaware of just how much of the UK is owned by the Americans and what consequences it has on their lives.

[George Gaillet · Rating 5 out of 5]

An eye-opening book. I wish all nationalist Brits would read this to check their delusions. Much of all the pomp and prestige is a superficial veneer controlled from Washington. Far from being vulnerable people on boats or staffing the NHS, Britain has handed over key infrastructure, assets, land, industry, to whichever elite asset managers and hedge fund will buy it. It's degraded the countries autonomy, the economy and communities as our lives become more and more beholden to the Big Tech 5. It's not anti-American, but asks for the reader to consider the consequences of these policies that Britain's politicians willingly pursue, whilst cheerily praising 'the special relationship'.

[Naomi Soman · Rating 3 out of 5]

Amazing how the British want to have their cake and eat it too. They mock Americans for being uneducated and unmannered yet brag about their special relationship with us. Obviously America is light-years ahead of the world in business. We work hard and we create policies that allow aspiring entrepreneurs to thrive. The degree to which the UK has fallen behind though shocked me. Highly recommended for any Brits still entertaining delusions of grandeur and for any Americans doubting their national pride.

[Alexandre · Rating 5 out of 5]

uma muito necessária auditoria ao grau de dependência dos estados unidos enfrentada por todos os setores da economia britânica. dependência essa agravada pela dupla praga rogada a aquele país: o thatcherismo e o brexit

desde novembro do ano passado o prudente é assumir o pior vindo do outro lado do atlântico, identificar zonas de dependência e começar o árduo esforço que o desmame implica. a alternativa será uma vassalagem mais ou menos crua, mas igualmente real

[Neve Turner · Rating 5 out of 5]

This book completely changed the way in which I view the world and the USA’s role as an imperialist nation we have been propagandised to view as normal and just. It opened a door I could not shut and led me down a path of enlightenment I could not stray from. For those who want to understand why the world is the way it is today, this is a must-read.

[jared · Rating 4 out of 5]

This was pretty interesting. It started off a tad bit slow but really picked up as it went on. I really had no idea US businesses had this much control over the UK. I’d be much more interested to read about US political, diplomatic, and military dominance of the UK.

[Owlseyes]

[Joseph Carr · Rating 3 out of 5]

makes one point very very well and comprehensively

[Jack Phillipson · Rating 5 out of 5]

dreadfully uncomfortable read, an absolute must for all those who want to mentally spiral about the state of the uk

[Colin Chambers · Rating 5 out of 5]

A brilliant and super well-researched analysis of how the U.S owns and controls the U.K. A really great read.

[Brian · Rating 4 out of 5]

An overview of America's domination of the British economy through its ownership of large British companies and through the operations of American companies in Britain.

How do the Brits not realise the special relationship is fiction and a con-job? It's embarrassing at this stage to see them prattling on about it at press conferences while the Americans try to keep a straight face.

It's a pity the author didn't go into more detail on how other European countries have managed to resist the Americans. Witness, for example, the strong French military aerospace sector compared to its gutted British equivalent.