Who does the UK owe money to?
Who Does the UK Owe Money to? – The UK government borrows mainly from UK pension funds and building societies. Amount 30% of UK government debt is borrowed from foreign banks and investment funds.
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Main Problems of UK Economy 2020
Readers Question: What are the main problems of the current UK economic situation? Low economic growth and in particular stagnant real wage growth Poor productivity growth since 2008 – which affects long-term growth prospects. Uncertainty from Brexit and likely costs to trade from new custom arrangements. Manufacturing sector State of the housing market – expensive …
Would a Labour government lead to an increase in interest rates?
The Labour Party manifesto commitment has numerous spending commitments. These are financed by a mixture of government borrowing and tax increases. Would the increase in spending and borrowing lead to higher interest rates? In summary – the most likely effect would be a short-term fiscal expansion, which could lead to higher growth, a rise in …
What is a structural deficit problem?
Readers Question: Surely when we have near full employment as we have now the Government should be producing a surplus (as in the late 1990s) and reducing the national debt. Not to do so means that we have a structural problem in the UK? Not necessarily. A structural deficit problem implies that even allowing for …
Define Fiscal and Monetary Policy
Readers Question: Explain the terms monetary policy and fiscal policy and compare the ways in which they influence the UK economy. Monetary Policy Monetary policy involves influencing the supply and demand for money through interest rates and other monetary tools. Monetary policy is usually conducted by the Central Bank, e.g. UK – Bank of England, …
Causes of business cycle
The business or trade cycle relates to the volatility of economic growth, and the different periods the economy goes through (e.g. boom and bust). There are many different factors that cause the economic cycle – such as interest rates, confidence, the credit cycle and the multiplier effect. Some economists also point to supply side explanations, …
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. …
NHS spending cuts
To what extent has the UK seen cuts in spending to the NHS and health care spending in recent years? In short: Actual spending on the NHS has increased. Real spending per capita has been broadly flat in recent years. As a share of the nations wealth, it is falling and it is true to …