United Kingdom
Basic information
- Area: 244,820 km²
- Calling code: +44
- Population (EST): 60,975,000
- Official language: English, Welsh, Irish, Ulster Scots, Scots, Scottish Gaelic, Cornish
- Time zone: GMT (UTC+0)
Overview
Swift, direct and cost effective access to the European Union - the world's largest market with 380 million consumers, is just one of the many reasons why the United Kingdom is the most favoured inward investment location in Europe. Thanks to this and a well-educated, skilled, English-speaking workforce, solid, reliable infrastructure and competitive establishment costs, around 40 per cent of all US, Japanese and Asian investment into the EU finds its way to the UK. More than 11,000 overseas companies, including almost all of the world's leading multinationals, representing all business sectors, operate from the UK
Economy
For several years the UK economy has grown steadily, at around 3 per cent. It is on a par with France and equates to around 75 per cent of that of Germany making it the fourth largest economy in the world. Private consumption accounts for around 70 per cent of GDP in the UK and though undergoing considerable review, strict public spending controls have in recent years contained government consumption. Government resistance to state subsidies coupled with recessions in the early Eighties and Nineties and the relentless growth of the global knowledge based economy has had its impact on the UK economy. As with most other developed countries, the service sector has experienced significant growth at the expense of manufacturing which now accounts for less than one fifth of output. With emphasis on banking, insurance and business services, the service sector accounts for the largest proportion of GDP by far at around two-thirds. By European standards agriculture is intensive, highly mechanised and efficient, meeting in the region of 60 per cent of domestic food needs employing only 1 per cent of the labour force. Large coal, natural gas and oil reserves account for around 10 per cent of GDP, one of the highest shares of any industrial nation. The past two decades has seen greatly reduced public ownership and a general constraint of social welfare programmes. The current Labour government continues to postpone the question of participation in the Euro until certain economic criteria are met. Whilst the Chancellor of the Exchequer, Gordon Brown, has identified the key economic tests to determine participation, it will largely be a political decision.
Infrastructure
Britain's integrated transport network provides fast, low-cost access to the global marketplace, making it an attractive centre of operations. An extensive rail network and comprehensive toll-free motorway network link all the UK's major industrial centres and its airports, seaports, and Channel Tunnel provide easy and cost effective access to the rest of the world. Paris and Brussels are just three hours by train from London. For many years, the UK has attracted the largest share of manufacturing foreign investment into Europe thereby demonstrating its suitability as a distributing centre for goods across Europe. With regard to the expansion, maintenance and management of complex infrastructure systems, the UK has a great deal of practical knowledge and expertise to offer in the shape of world-class contractors, equipment suppliers and consultants coupled with leading firms of specialised financiers and legal experts. Aside from developing and managing domestic infrastructure, these companies also export their expertise by investing in overseas projects to develop new systems and managing previously state owned assets. Many landmark projects throughout the world benefit from the participation of UK companies in design, management or construction. The UK port sector is one of the most diverse in the world, handling more than 300,000 shipping movements a year, some 600 million tonnes of freight and 36 million international passenger journeys. Every major industrial centre in the country is within 100 miles of a commercial port and in commercial terms, 95 per cent of UK freight by tonnage arrives or leaves by sea.
Business Costs
With a considered emphasis on growth, innovation and diversity, the UK's business environment is replete with incentives. Local agencies offer a range of free advice and programmes with regard to training and development of human resources, access to property and local expertise. There are a variety of tax allowances for companies establishing footholds in certain areas designed to encourage inward investment and provide the best possible environment for success. In addition to this, together with a complete absence of local profit taxation, the UK has the lowest main corporation tax rate of any major industrialised country. Utility costs in the UK are among the lowest in the European Union and the telecommunications industry infrastructure is one of the most advanced in the world. This is a thanks in part to the early privatisation of telecommunications and a well-developed on-line market, which was encouraged by a rapid growth in cable companies and is sustained by a significant number of Internet service companies. Overseas companies locating in the UK will find a high quality, reliable telecommunications infrastructure and a wealth of technical expertise.
