Category: United Kingdom

British Economy Making Comeback but Challenges Loom


British GDP shot up 0.7 percent in the second quarter, improving upon 0.4-percent growth seen in the first quarter. Factory output faltered during the second quarter, and a stronger currency is hurting the export sector.

Data from the Office for National Statistics further showed that Britain is increasingly relying on domestic demand to sustain the economy. Analysts also expect domestic demand to remain strong, as wage increases allow more people to pour money into the economy. Inflation is also down, and more firms show a willingness to invest again.

Confounding Decisions on Combatting Climate Change by the UK Government


The new Conservative government is letting slip its commitments to renewable energy and climate change mitigation. The bad decisions keep coming, and do not add up to a policy strategy consistent with the UK’s emissions and efficiency targets, and more generally with fighting climate change.

Business Secretary Sajid Javid’s Bold Move to Boost U.K. Apprenticeships


Britain is on the hunt for new apprentices. George Osborne recently unveiled a levy on large employers to pay for an increase in the number of apprenticeships from 2m to 5m. In addition, as he made the announcement, the chancellor signalled one of the key problems with workplace training, that while many companies do a brilliant job “there are too many large companies who … take a free ride on the system.”

UK Trade Deficit Shrinks


The United Kingdom is seeing more demand from foreigners, helping the country’s trade deficit to fall by nearly $2 billion.

The UK trade deficit fell by 1.2 billion pounds, or about $1.9 billion, in April of this year. That is a fall of over 50% from the prior month, according to the Office for National Statistics, as consumption was offset by greater demand for British services.

The Last Round of UK Deflation was Pre-Beatles


The rate of inflation has turned negative for the first time in 55 years in the UK. The phenomenon of deflation in economic jargon means consumers will see a drop in prices, with essentials like petrol and food cheaper than this time a year ago. Crucially, deflation constitutes a fall in prices over a sustained period. This can be a very serious economic problem and one that is not easy to cure. So should the UK be worried?

Is the New Conservative Government Prepared to Tackle the UK’s Many Challenges?


The state of the UK economy featured heavily in the election campaign, but the deficit overwhelmed the discussion. Over the next five years, however, the new government will have to confront a range of economic challenges. Predicting how these will develop is notoriously difficult (although opinion pollsters may now have a worse reputation than economists for forecasting), but several key areas can be identified – and restoring growth to the UK economy is of paramount importance.

Conservatives Promise Referendum on Britain Leaving the EU


Prime Minister David Cameron vowed to hold a referendum by 2017, determining whether Britain should leave the European Union. However, the promise is based on the ability of conservatives to win elections on May 7.

UK Growth Stalls in Conservative Challenge


UK growth slowed to its lowest rate since 2012 in a surprise reversal.

The British economy saw growth slow to just 0.3% in the first quarter of this year, a sharp reversal from the previous quarter when growth rose at a 0.5% rate. Analyst had varied expectations of growth nearly double the actual rate for Q1.

Consumers Fail to Show Up

Would the UK Economy Have Been Better Off Without Austerity?


In the last five years, austerity has undermined our public services, lowered the living standards of working people, pushed more children into poverty and held back economic growth.

Nicola Sturgeon, Scottish first minister and Scottish National Party leader at the party’s manifesto launch.

Scottish Economy Takes Sharp Downturn but a Rebound is Expected


A report from the Bank of Scotland noted that Scotland’s economy slowed heavily in the first few months of 2014, but expects additional growth over the next few months. Bank of Scotland economist Donald MacRae notes that the economy slumped in the beginning of 2015, but expects stabilized growth to return sometime in the spring.