uk economy

uk-unemployment-

Economic impact of Margaret Thatcher

A look at the economic and social impact of Mrs Thatcher’s economic policies.   Summary of Thatcher’s Economic policies Belief in the desirability of free markets over government intervention. E.g. pursuing policies of privatisation and deregulation. The pursuit of supply-side policies to increase efficiency and productivity. Reducing the power of trades unions and increased labour market flexibility. Financial deregulation, e.g. building societies becoming profit-making banks. Reducing higher rates of marginal income tax to increase incentives to work. Ending state subsidies for major manufacturing companies. Encouraging home ownership and share…

UK National Debt

The UK national debt is the total amount of money the British government owes to the private sector and other purchasers of UK gilts. In June 2018, UK public sector net debt was £1,792.3 billion equivalent to 85.2% of GDP Source: (page updated 12 Aug 2018) Source: ONS debt as % of GDP – HF6X | PUSF – public sector finances at ONS Budget deficit – annual borrowing This is the amount…

Balanced and unbalanced economic growth

Balanced and unbalanced economic growth

What do we mean by balanced economic growth? Also, is it important for an economy to promote a balanced approach to growth? A balanced economy suggests that economic growth is sustainable in the long-term, and the economy is also growing across different sectors – and not focused on one particular industry or area. A balanced economy has several key features. Low inflation – avoiding an unsustainable boom and bust period of economic growth. A balance between saving and consumption. An unbalanced economy would consume a  high % of income. A…

monetary-vs-fiscal-policy

Monetary and Fiscal Policy in the UK

Readers Question: What do you understand by the terms ‘monetary policy’ and ‘fiscal policy’? Explain with reference to a country of your choice:- a) How these policies have been used by the government to try to achieve its objectives Definition – monetary and fiscal policy Monetary policy is managed by the Bank of England. They have a target to control inflation (CPI = 2% +/-1) and also consider economic growth. The Bank of England use interest rates and influencing the money supply to implement…

Impact of rising population in the UK

Impact of rising population in the UK

The UK population is projected to increase by 9.7 million over the next 25 years from an estimated 64.6 million in mid-2014 to 74.3 million in mid-2039. (ONS). Approx. 50% of the population increase is expected due to net migration. This is a look at the economic and social impact of a rise in the population. The UK is bucking the trend of many Western economies, such as Italy, France and Japan – who are seeing low birth rates, an ageing population…

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Top 10 British Banks

In recent years, the British Banking system has become highly concentrated due to the wave of mergers following the credit crunch. Top 5 British Owned banks Bank Market value (£bn) As of October 2013 Assets (£bn) As of 31 March 2017 1. HSBC 126 1,936 2. Lloyds Banking Group (Bank of Scotland/Halifax) 53.5 817 3. Barclays 43.6 1,203 4. Royal Bank of Scotland Group Natwest, Ulster Bank 42.0 783 5. Standard Chartered 36.7 526 Smaller Banks Co-operative Bank owned by The Co-operative Group. Sainsbury’s Bank: 50% owned by British supermarket company Sainsbury’s and 50% owned by Lloyds Banking Group. Tesco Bank:…

Buy British campaigns

Buy British campaigns

At different times there have been campaigns to ‘Buy British’ – patriotic efforts to support the economy. The campaigns seem quite popular, but usually fade out, having made little difference to major macro-economic variables. It is a form of economic nationalism and similar campaigns can be seen in many different countries. Buy British campaigns can make more difference when they are targeted at particular industries, such as farming, steel.   Examples of Buy British Campaigns 1930s  A ‘Buy British’ campaign  was launched…

Threats to UK economy

Threats to UK economy

The UK economy is showing signs of economic recovery. Positive economic growth, falling unemployment, and after a long gap – rising real wages. However, despite positive economic growth, there are many potential threats that could derail the economy and lead to a period of prolonged weak growth or even future recession. Some of the main threats to UK economy include: 1. Weak global growth The global economy is struggling to meet previous rates of economic growth. With the exception of US, many economies are…