Britain's former Prime Ministers Margaret Thatcher kept UK out of the European market highlight the reason behind the decision
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Margaret Thatcher's tussles over Europe and the UK's role in what is now the European Union were among the defining moments of her premiership.
She passionately fought and won a number of battles against what she saw as the excessive powers of Brussels.
Europe also ultimately brought about Mrs Thatcher's downfall as prime minister, as her increasingly anti-EU views led the pro-Europeans in her party to move to oust her.
Yet Margaret Thatcher had not always been so vehemently opposed to European-wide initiatives.
In 1975, for instance, she played a key role in campaigning for the UK to remain in the European Community.
And in 1978 she was arguing for consideration of a common European approach to defence. She had also criticised the then Labour government for failing to sign up to the exchange-rate mechanism (ERM).