Taking in consideration the question is necessary define in few words the concepts of Oligarchy and Democracy.
According the Encyclopaedia Britannica Oligarchy government by the few, specially despotic power exercised by a small and privileged group for corrupt or selfish purposes.
And Democracy is a state of society characterized by formal equality of rights and privileges.
I think that the government of britain was an oligarchy rather than democracy, because its central of power was the imperial and in that context the only system of government possible is Oligarchy.