How could a dictatorship rise in the UK?

For all his racism, Enoch Powell was a free market parliamentarian and no Fascist.

Agreed, and even in Gordon Banks, although highly authoritarian, by 1980 the UK is still (technically) a democratic government following a 1977 Conservative landslide after the Labour party fractured and the Liberals had Thorpe's scandal hit earlier.
 
Dictatorships in what had previously been democratic societies are usually the product of national trauma. Since the surrender at Yorktown in 1783, Britain has not experienced a trauma of the magnitude of military occupation or catastrophic military defeat.

Are you sure about that?

There are monuments all over the UK to a major national trauma in the years 1914-1918. One incomparably more severe than the even the losers of the wars from 1648-1914 suffered.

All you need really is a spark to convince the people that they were cheated of the fruits of victory.

How about something like this:

- Lenin never gets to Russia
- No Bolshevik revolution in Russia.
- in the UK, the capitalist and upper classes have less fear of workers post WW1, and take harsh measures to clamp down on labour unrest etc.,
- That provokes an extreme left wing revolutionary movement which either succeeds (imposing a marxist dictatorship) or which provokes a counter-reaction (a rightwing dictatorship).
 
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