An interesting graph showing the average return on the FTSE since 1984. This shows the cumulative annualised growth of the FTSE (ln(fn/f0)/n) where f0 is the value of the FTSE in April 2004 and fn is the value of the FTSE n (possibly fractional) years later. I omitted the first 3 years which showed very high returns, but cumulative growth averaged out at 10% throughout the Conservative government, but fell away so that total growth between 1994 and 2008 is now only an average of 5% per year.
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Here is another view, showing a rolling 10 year growth of the FTSE:
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