GDP at market prices

GDP at market price in 2010 was registered at GBP 1,463 billion, increasing 4.9% over 2009.

(Source: hm-treasury.gov.uk)

Growth of real GDP

In 2010, real GDP registered a growth rate of 1.2%.

(Source: hm-treasury.gov.uk)

Gross national income (GNI)

(Source: World Bank)

Income tax rate in the UK

(Source: HM Revenues and Customs)

Corporate taxation

Corporate taxation has remained unaffected for the last few years.  However, in 2010-2011 some marginal changes were made.

 *For companies with ring fence profits (income and gains from oil extraction activities or oil rights in the UK and UK Continental Shelf) these rates differ. The small profits rate of tax on those profits is 19% and the ring fence fraction is 11/400 for financial years starting 1 April 2008, 2009 and 2010. The main rate is 30% for financial years starting on 1 April 2009, 2010 and 2011.

(Source: HM Revenues and Customs)

Inflation rate

In the UK, as of 2003, the Consumer Prices Index (CPI) is the official inflation Indicator. Prior to  the CPI, Retail Prices Index (RPI) indicated the inflation level in the country. The CPI for the month of December 2010 was marked at 3.7%.

(Source:National Statistics)

Foreign direct investment inflow

In 2009, direct investment of the UK in other countries was GBP 21.2 billion, decreasing 78.65% over 2008. Furthermore, foreign direct investment in the UK amounted to GBP 45.7 billion by the end of 2009, decreasing 6.54% from 2008.

(Source: National Statistics)

(Source: National Statistics)

Banking Sector Assets

Total bank assets for the Bank of England were recorded at GBP 246,669 million for 2010, increasing 47% as compared to GBP 167,311 million in 2009. The bulk of the movement in assets was in loans and advances, as a result of the increased lending to the Bank of England Asset Purchase Facility Fund Ltd (BEAPFF).

(Source: Bank of England)

(Source: Bank of England)

Stock market capitalisation

Domestic equity market capitalization for the London stock exchange was registered at USD 2,407 billion in June 2010, which is a 9.6% change from from the previous year's USD 2,198 billion.

(Source: World Exchange)

Consumer price index (CPI)

The consumer price index recorded a 1.04% hike in December 2010.

(Source: National Statistics)

Wholesale price index

The overall output price index increased by 4.1% in December 2010, compared to 3.8% in September 2010.

(Source: National Statistics)

The overall input index increased to 12.9% in December, compared with a rise of 9.2% in November. The rise in the input index between November and December reflected the rise in the price of imports.

(Source: National Statistics) 

Interest rate on savings deposits

The interest rate on savings in UK ranges from 2.5% to 3%.

(Source: Money Facts)

Interest rate on time deposits

Depending on the bank and the time period, the interest rates will range from 3% to 4%

(Source: Money Facts)

Money supply (currency in circulation)

There are mainly two measures of money supply in UK: M0 and M4

M4 is the money outside the banks, or the money in circulation in the public, including the private retail and wholesale banks and deposit certificates.

(Source: National Statistics)

Government expenditure

The govvernment spending increased by about 7-8% from 2008 to 2009, and is estimated to rise by a further 6.27% for the 2010. Health and pensions are the two major spending categories, which, when combined, account for more than a third of the government's expenditure.

(Source: UK Public Spending)

The 2010 budget in the UK stressed a long lasting economic recovery rooted in both the private and the public sector. In order to overcome the public spending deficit, the government plans to reduce the current spending to about GBP 30 billion a year by 2014-2015. Furthermore, the government also plans to deliver GBP 6.2 billion to deal with the budget deficit of waste and the inefficiency across public sector.

(Source: Direct.Gov)

(Source: UK Public Spending)

Official exchange rate

 (Source: National Statistics)

Government finances

Total revenue

The government expects to collect a revenue of GBP 548 billion in 2010-11.  A major part of which will be sourced from Iincome tax and national insurance.

(Source: Direct.Gov)

Fiscal deficit

In 2010, the fiscal budget deficit of the country amounted to GBP 113 billion.

(Source: Direct.Gov)

Tax revenue

The economic crisis in the last two years resulted in the dipping revenues.  However, the situation is expected to improve this year and in the next half decade as the government revenues are expected to rise by about CAGR of 5%.

(Source: Guardian UK)

(Source: Guardian UK)

Balance of payments

Since 1984, a current account deficit has prevailed in UK. However, in the last two years there has been a reduction in the current account deficit.

(Source: National Statistics)

(Source: National Statistics)

Labour force

More than three quarters of the total population aged between 16 and 64 are economically active. The employment rate is nearly 70%.

(Source: National Statistics)

(Source: National Statistics)

Labour force participation rate

The labour force participation rate for the year 2008 was 62.2% of the total population above 15 years of age. The female participation rate for the same year was 55% and male participation rate stood at 70%

(Source: World Bank)

Unemployment rate

Unemployment has been steadily increasing over the last five years. In 2008-09 the rate experienced a sharp jump because of the economic crisis.

(Source: National Statistics)

(Source: National Statistics)

Employment in agriculture

In 2009, about 1.4% of the total employed people work in the agriculture sector.

(Source: World Bank)

Employment in industries

Industries employ about 21.39% of the total employed people.

(Source: World Bank)

Employment in services

Service, the largest employer in the country, employs 76.9% of total.

(Source: World Bank)

Level of unionisation

Trade Union Congress, one of country’s leading trade unions, has 58 affiliated unions, representing 6.2 million working people from different industries.

(Source: TUC.org)

Minimum wage

The minimum wage rates in the country as of October 2009 are:

• GBP 5.80 per hour for workers aged 22 and older
• GBP 4.83 per hour for workers aged 18-21 inclusive
• GBP 3.57 per hour for all workers under the age of 18, who are no longer of a compulsory school age

(Source: HMRC)

Political stability

The UK operates under a constitutional monarchy. The country does not have a written constitution, thus the law is based on common law and traditional rights.

The head of the state is Queen Elizabeth II, while the Prime Minister, David Cameron, heads the Government.

Political parties active in the country are:

• Labour
•  Liberal Democrats
• UK Independence Party
• British National Party
• Green Party
• Scotland- Scottish National Party
• Wales- Plaid Cymru (Party of Wales)
• Northern Ireland-Ulster Unionist Party, Social Democratic and Labour Party, Democratic Unionist Party, Sinn Fein, Alliance Party, Progressive Unionist Party

The Labour Party has been in power since 1997 under Tony Blair and then briefly for Gordon Brown. The ruling government headed by David Cameron, is a formal coalition with Liberal Democrats and conservatives. The Liberal Democrat leader, Nick Clegg, became the Deputy Prime Minister as a part of the coalition deal after the 2010 elections.

(Source: State. Gov)

Regulatory environment in UK

The executive power rests with the monarch, but in a real sense is exercised by the cabinet ministers, who are selected out of the House of Commons and the House of Lords.

Parliament makes and passes laws for the entire nation;

• The devolped legislatures in Scotland, Northern Ireland, and Wales have varying degrees of legislative authority over all matters except foreign policy, energy policy, immigration and border control, and monetary policy
• The Parliament acts as the legislate for all fields in England.
• The maximum parliamentary term, up until 2010, was 5 years and the Prime Minister had the authority to ask the monarch to dissolve parliament anytime. However the new government has proposed that to vote out a government between elections, a vote of no confidence with the support of 55% of members of parliament would be required.

Business and economic freedom

United Kingdom scores 74.5 on the economic freedom index making it the 16^th freest economy in 2011. The UK is ranked 7^th out of the 43 European countries and its overall score is much higher than the world average.

Corruption perception

The United Kingdom is ranked 20^th on the Corruption Perceptions Index (CPI) 2010, which measures the perceived level of public-sector corruption in 180 countries and territories around the world.

(Source: Transparency.Org)

Freedom of information

The British media are free to comment or report on all aspects of British life and Politics. British politics or political parties exercise no control on media. The Daily Telegraph, Financial Times and The Guardian are the key newspapers in the country, while BBC is the key TV broadcaster.

The country ranks 19^th on the Press Freedom Index 2010, much behind its European counterparts Finland, Netherland, Norway, Sweden, Switzerland, Austria, Estonia, Denmark , Lithuania, Belgium, Luxembourg and Germany.

(Source: rsf.org)

Estimated population in the country was 61.8 million people by mid 2009, increasing 0.6% over the previous year. England is heavily populated accounting for about 85% of the total UK population, while Wales, Scotland and Northern Ireland account for only 5%, 8% and 3% of the population.

The population is expected to reach 62.65 million and 64.8 million people by the mid of 2011 and 2016 respectively. However, the regional distribution of population is projected to remain the same.

(Source: National Statistics)

The total male population of the country in 2009 was 30.4 million, while the female population was 31.4 million, accounting for about 50.8% of the total population.

(Source: National Statistics)

Birth rate

In 2009, the birth rate (per 1,000 women of childbearing age) wasregistered at 63.6. Furthermore, there were 706,248 live births in 2009, compared to 708,711 in 2008.

(Source: guardian.co.uk)

(Source: National Statistics Office)

The average age of the population in 2009 was 39.5 years, marginally up from 37.3 years in 1999. Additonally, the Life expectancy in 2007-09 was determined at 77.7 years for males and 81.9 years for females.

(Source: National Statistics)

The country’s mortality rates for 2008 was the lowest ever recorded at 700 deaths for males and 499 deaths for females (per 100,000 people).

(Source: National Statistics)

Infant mortality rates have also dropped significantly. The infant mortality rate in England and Wales (deaths under one year of age) was 4.5 deaths per 1,000 live births in 2008, as compared to 12 deaths per 1,000 live births in 1980 reflecting a decrease of 62.5%.

(Source: National Statistics Office)

The UK ranked 26^th on the Human Development Index (HDI) 2010 conducted by the United Nations. The HDI provides a composite measure of three dimensions of human development: living a long and healthy life (measured by life expectancy), being educated (measured by adult literacy and gross enrolment in education) and having a basic standard of living (measured by purchasing power parity, PPP, income). 

(Source: UNDP)

The households below average income (HBAI) survey in 2009 revelaed that 13.4 million people (22% of the total population) in the UK are income poor. 

Of those 13.4 million people:

• About 53% of households have one child
• A third (32%) are households without children
• And nearly 15% of households are pensioners

(Source: CPAG)

0.43 million people emigrated from the UK in 2008, a increasing by nearly 25% from the previous year. The rise in the emigration was due to an increased number of non-British citizens leaving the country, about 0.26 million non-British people left the country.

Approximately 590,000 people were expected to have arrived to live in the UK in 2008, demonstrating an immigartion increase of 3% from the previous year. However, the net immigration in the UK fell in 2008, as a result of increased emigration in 2008, as compared with 2007.

(Source: National Statistics)

Education/literacy rate

The literacy rate in the UK is registered at 99%, with 12 years of education compulsory for every citizen.

(Source: State. Gov)

Education resources

The education system in UK has consistently improved over the past 3 decades. There has been an increasing number of children enrolled for early education, partly because of the increase in the number of schools available.

(Source: National Statistics)

The education sector impacts the UK economy significantly. In 2007/08 the higher education sector spent GBP 19.5 billion on goods and services produced in the UK. The total output generated by the UK universities in 2007/2008 was GBP 59 billion, which accounted for 42% of the total output generated by all industries. Furthermore, universities in the UK employed nearly 49% of the total working populace in the year 2007/2008.

(Source:universitiesuk.ac.uk)

(Source:universitiesuk.ac.uk)

Mass public transit

The various means of public transit in UK include buses, trains, metros and taxis.

(Source: DFT.Gov)

Ports

There are about 384 ports in and around the UK, including: Dover, Felixstowe, Immingham, Liverpool, London, Southampton, Teesport in England; Forth Ports, Hound Point in Scotland; and Milford Haven in Wales.

(Source: World Port Source)

Airports

There are about 505 airports in the UK; The busiest airports are Heathrow, Gatwick, Manchester, Stansted, Birmingham, Glasgow, Edinburgh, Luton, Belfast International and Bristol

(Source: World Airport)

Telecommunications networks

• Number of fixed residential broadband connections in the UK - 16.8 million by the end of 2009
• 15% adults in UK use mobile broadband (2010)
• 89% of adults owned mobile phones (2010)
• 22.9 million fixed landlines (2009)

(Source: Media.Ofcom)

Internet access

As of June 2010, the country had 51,442,100 internet users, as compared to 15,400,000 in 2000. Thus, the internet penetration rate has increased from 26.2% in 2000, to 82.5% in 2010.

(Source: internetworldstats)