Economy and Politics in

Contents

• Introduction
• Three Arms of State
• Current Political Climate
• Economy Overview
• Macro Indicators

Introduction

• United Kingdom includes England, Scotland and Wales
• In the 19th century british empire spread throughout 1/4th of world
• lost most of their positions after WWII
• played leading role in developing modern democracy

The Three Arms of State

• Executive
• Legislative
• Judiciary

Executive

• Head of State: Queen Elizabeth II
• The Monarchy is hereditery
• Head of Government: David Cameron
• Cabinet Ministers appointed by Prime Minister

Legislative

• Parliament System (Westminster)
• House of Lords
• House of Commons

House of Commons

• Elected
• Percent of party by vote
• Leader of majority party becomes PM

The House of Lords

• No elections
• History dates them from time of kings
• Selected from diverse backgrounds

Political Parties

• Since 1920 multi-party system
• Three major parties:
• The Labour Party, The Conservative Party and Liberal Democratic Party
• Since 2010 Conservative and Democratic party act in coalition

Judicial

• Highest court is Supreme Court
• Replaced Appellate Committee of House of Lords
• Via Constitutional Reform in 2005
• Judges chosen by committee but appointed by Her Majesty
• Three Distinct Law systems: English, Nothern Ireland and Scots Law

Who runs the government?

• The Monarch
• The House of Lords
• The House of Commons

The Monarch

• Currently Her Majesty Queen Elizabeth II
• Powers have not been used in over 200 years
• Obtained only through hereditary
• Also Head of the Church of England

Current Political Climate

• The Labor Party Lost the 2010 elections
• Conservative Party, David Cameron became PM
• Formed a Coalition with Liberal Party
• Main target in reducing government expenditure
• Scottish Independence Referendum

Economy

Overview

• 06th Largest Economy(GDP vice)
• Since 1979 follows a Laissez-Faire approach
• Member of EU, IMF, World Bank, etc
• Economic policies have to be inline with EU policy
• 03rd highest reserve currency

The UK Economy/ Composition of GDP (2013)

GDP Growth Rate(%)

GDP Growth Compared to other Economies(2013)(Annual)

Macro Economics of UK

• Inflation
• Interest Rates
• Per Capita GDP
• Forex
• Corporate Tax Rates

Constant at 0.5% since 2010

Per Capita GDP(USD)

Exchange Rates

• London is capital of Forex trading
• World's Largest Average Daily Turnover
• Not joined the Euro

Corporate Tax

• Was 26% in 2011
• 21% in 2014
• Following staged reduction
• Threshold for taxation

Current Trends

• GDP growth is slowing
• Still surpasses other economies- G7 countries
• Unemployments is reducing
• Service(financial) sector growth is increasing
• HouseHold spending is increasing but at lower pace

Conclusion

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