Theoretical introduction to the United Kingdom characteristics supported by data interpreted as descriptive statistics and graphic elements. p Instituto Politecnico de Braganca A particular research of the United Kingdom The report contains statistics rates with relevant explanations. Prepared by Karyna Radzykhovska and Viktor Darii, November 2012. Demography and Geography
Location: Western Europe, consisting of Great Britain (England, Wales, and Scotland ) and Northern Ireland; islands – including the northern one-sixth of the island of Ireland – between the North Atlantic Ocean and the North Sea; northwest of France; the UK is also surrounded by the English Channel and the Irish Sea. England accounts for just over half of the total area of the UK, covering 130,395 square kilometers (50,350 sq mi). Most of the country consists of lowland terrain, with mountainous terrain north-west of the Tees-Exe line;
Scotland accounts for just under a third of the total area of the UK, covering 78,772 square kilometers (30,410 sq mi) and including nearly eight hundred islands, predominantly west and north of the mainland; notably the Hebrides, Orkney Islands and Shetland Islands. Wales accounts for less than a tenth of the total area of the UK, covering 20,779 square kilometers (8,020 sq mi). Wales is mostly mountainous, though South Wales is less mountainous than North and mid Wales. The main population and industrial areas are in South Wales, consisting of the coastal cities of Cardiff, Swansea and Newport, and the South Wales Valleys to their north.
Northern Ireland accounts for just 14,160 square kilometres (5,470 sq mi) and is mostly hilly. It includes Lough Neagh which, at 388 square kilometres (150 sq mi), is the largest lake in the British Isles by area. Area: total: 243,610 sq km country comparison to the world: 80 land: 241,930 sq km water: 1,680 sq km note: includes Rockall and Shetland Islands. Important rivers flowing into the North Sea are the Thames, Humber, Tees, and Tyne. In the west are the Severn and Wye, which empty into the Bristol Channel and are navigable, as are the Mersey and Ribble. Cities: Capital – London (metropolitan pop. about 8. 15 million). Other cities – Birmingham, Glasgow, Leeds, Sheffield, Liverpool, Bradford, Manchester, Edinburgh, Bristol, Belfast. Climate: Generally mild and temperate; weather is subject to frequent changes but not often to temperature extremes. The temperature varies with the seasons seldom dropping below ? 11 °C (12 °F) or rising above 35 °C (95 °F). Atlantic currents, warmed by the Gulf Stream, bring mild winters; especially in the west where winters are wet and even more so over high ground. Summers are warmest in the south-east of England, being closest to the European mainland, and coolest in the north.
Heavy snowfall can occur in winter and early spring on high ground, and occasionally settles to great depth away from the hills. Land use: 25% arable, 46% meadows and pastures, 10% forests and woodland, 19% other. Population: 62,698,362 Annual population growth rate: 0. 557%. Ethnic groups: White 92. 1% (of which English 83. 6%, Scottish 8. 6%, Welsh 4. 9%, Northern Irish 2. 9%), black 2%, Indian 1. 8%, Pakistani 1. 3%, mixed 1. 2%, other 1. 6%. Languages: English, Welsh, Irish Gaelic, Scottish Gaelic Age structure: 0-14 years: 17. 3% (male 5,597,024/ female 5,321,456) 15-64 years: 65. % (male 20,980,815/ female 20,479,803) 65 years and over: 16. 9% (male 4,732,895/ female 5,935,169) Median age: total: 40. 2 years male: 39 years female: 41. 2 years Birth rate: 12. 27 births/1,000 population country comparison to the world: 161 Death rate: 2. 59 migrant(s)/1,000 population country comparison to the world: 29 Migration: The ONS reported that net migration rose from 2009 to 2010 by 21 percent to 239,000. In 2011 the net increase was 251,000: immigration was 589,000, while the number of people emigrating (for more than 12 months) was 338,000.
A relevant data of international migration during 2011 rate is presented as statistics rates in a table form. This data of inflows and outflows of the United Kingdom is available in the latest report which is published on a website of Office for National Statistics. Inflows and outflows rate of international migration are divided into quarters of 2011 year and shows two statistics rates which can be comparable between main reasons for migration and geographical distribution of both emigrants and immigrants.
For precise comparing the balance rates of inflows and outflows are shown. Table 1 Citizenships Table source: Office for national statistics On this table one can observe the rates of all the types of migrations. Moreover, balance between inflows and outflows is established and measures are both negative and positive. Underneath measure is positive or negative, it is easier to compare whether outflows rate exceeds. Numbers of migrants of all the citizenships are denominated in thousands. In the first column of a table summarized amounts of all the citizenships are shown..
In the column of EU8, one can observe migrating citizens of Eastern Europe countries (Poland, Litwa, Lithuania, The Czech Republic, Romania, Bulgaria, Slovakia, and Estonia). The number of immigrants from there is lower than number of common wealth citizens but is almost equal to number of EU 15 citizens. The only misbalance one can observe between inflows and outflows in British citizenship’s column. The number of outflowing migrants with british citizenship exceeds the number of inflows during all the quarters of 2011. In the next table main reasons for migration are shown.
It can help figure out the reason of misbalance and main motivation of non-European citizens coming to the United Kingdom. Table 2 Main reasons for migration Table source: Office for National Statistics First of all, it is easy to notice that misbalance between approximately each rate of reasons is observed near to year ending (second two quarters). For instance, in the column of reason of looking for definite job its shown that outflows had exceeded over inflows by the end of 2011 year, that mean that people weren’t able to find definite job in the UK.
Migrants, who were looking for job also outflowed by the end of 2011 according to misbalance. Nevertheless, it should be mentioned, that the main motivation for inflowing migrants is formal studying according to the rate. One can figure out that in the UK quality of education quite high in accordance to balance rate in the column (no misbalance is observed). Some relevant graphs are presented in order to establish direct relation between numbers of foreign citizens migrating and the main reasons of migration. Graph 1. Citizenship: British Main reason for migration: Work related (definite job or looking for work)
Graph source: Office for National Statistics This graph shows the number both of emigrants and immigrants whose reason of migrating was work related. Note, that during the period from 2002 year to 2011 number of emigrants still exceeded over the number of immigrants. But by the end of 2011 net migration value (denominated as misbalance in thousands) become higher due to noticeable difference between inflowing and outflowing migrants. But this graph presents the migration only of british citizens and it according to it , british citizens are observed to leave their homeland for job than finding it in than UK.
For new employer it can turn out to be a potentially profitable perspective as a new efficient employer , hiring young perspective stuff and helping them to gain professional skills and expeirence. But if one observe the graph , that shows number of all possible citizens around the world relating to the same reason, quite the contrary situation will be shown. Graph 2 Citizenship: All citizenships Main reason for migration: Work related (definite job or looking for work) Graph Source: Office for National Statistics A misbalance that is observed in table 2 is already shown in this graph.
The net migration rate is negative in December of 2011due to outflowing migrants whose number exceeds the number of inflowing migrants and this decrease has been observed since the first quarter of 2008 year. The misbalance between immigration and emigration can be either profitable or unfavorable fact for firm preparing to be established there. Firm may face with problems of working with unqualified stuff and it may result in additional costs (qualifying new workers, hiring stuff from origin country etc). Despite the migration statistics that can be examined in two ways, there is also education statistics presented.
Education: Education expenditure: In the UK in 2010–11 expenditure was estimated at ? 92. 5 billion, of which; ? 4. 9 billion was directly on under fives, ? 24. 7 billion was on primary education, ? 40. 2 billion was on secondary education and ? 15. 7 billion was on tertiary education (further and higher education). Estimated expenditure on education services by central and local government in the UK in 2010–11 was 6. 3 per cent of GDP, unchanged from 2009–10 but 1. 6 percentage points higher than 1990–91 when the estimated expenditure was 4. 7 per cent of GDP.
Qualification levels and human capital: Human capital can be defined as the knowledge, skills, competencies and attributes embodied in individuals that facilitate the creation of personal, social and economic well-being (OECD). In accordance to the latest observations by ONS, one can figure out that the level of highest qualification of people aged from 16 to 64 have increased over time. It is closely linked to amounts of education expenditures which have increased within the same time period. Table 3 Population aged 16 to 64 with different levels of qualification
Table source: Office for National Statistics. The values in Table 3 are denominated in millions and its shown that 35,4 million of adults in the UK had a formal education in 2011. Also, 31. 2 million (78 per cent) were qualified to GCSE grade A* to C (or equivalent) or above. Only 3,7 million of the whole population in the UK had higher education but the thing is that population tend to gain degree of equivalent , that means experience can be substituted for a degree and the “Or Equivalent” would refer to people who went to college in a foreign country. Not all countries grant a bachelor’s degree.
This fact in the UK may be caused by high prices for higher education and on the contrary better working environment where people can be trained for working skills for free and they are guaranteed a normal job in advance. Due to the fact of more experienced and skilled number of workforce in the UK, it can be easy for firm to cooperate with foreign stuff and train somehow the stuff from the origin country if necessary. Data from ONS shows the estimated value of human capital in the UK has increased from ? 14,460 billion in 2001 and peaked at ? 17,250 billion in 2009 before falling to ? 7,120 billion in 2010. Despite the fact, illiteracy of the population in the UK is still kept at the low level. Misbalance in migrations rates might be caused by immigration for formal studying reasons. Consequently people who gained higher education in the UK leaving the country for jobs are offered abroad with the same levels of salaries but lower cost of living as well within british citizens. Healthcare: Referring to data and publications which are already available , it can be easily observed that in the UK the volume of healthcare inputs grew by 88. 8 per cent, an annual average increase of 4. per cent and the volume of output grew by 83. 8 per cent, an annual average increase of 4. 4 per cent. There are two relevant figures presented showing the growth in healthcare outputs and inputs. Graph 3. Healthcare output 1985-2009. This graph shows percentage changes in healthcare outputs in the UK. Healthcare output has two components: * Quantity (which is adjusted for) * Quality Graph source: Office for International Statistics Healthcare quality has had a positive impact on output since 2002 following small negative impact in 2001, the first year for which data were available.
Quantity of UK healthcare is measured as the change in cost weighted activity index covering most types of UK healthcare activity. Measured activities fall into one of three categories: * Hospital and Community Health Services (HCHS) includes hospital impatient , day case and outpatient episodes. These procedures are distinguished by Health Resource Group * Family Health Sevices (FHS) includes GP and practice nurse consultations, ublicly funded dental treatment and sight tests. * GP prescribing which includes all drugs prescribed by general practitioners What drove output growth between 1995 and 2009? The volume of drugs prescribed by GPs more than tripled over the whole period, with growth averaging 8. 6 per cent per year. This component accounts for just over one-sixth of output by expenditure weight • The volume of Hospital and Community Health Services (HCHS) rose by 55. 2 per cent over the whole period. This corresponds to an average annual growth rate of 3. 2 per cent. HCHS is the largest component of output, accounting for two-thirds of total output by expenditure weight • The volume of Family Health Services (FHS) increased by 29. per cent over the period, with growth averaging 1. 9 per cent per year. This is the smallest component of output, accounting for a little under one-sixth of the total. Graph 4. Healthcare quantity Presented figure summarises quantity growth in each component from 1995 to 2009. HCHS quantity grew by an annual average of 3. 2 per cent over the whole period, with growth of 6 per cent in both 2008 and 2009 . It has been the largest contributor overall quantity growth across all the UK countries. Its contribution increased markedly to around three-quarters of all quantity growth in 2008-09.
FHS quantity grew from 2000 to 2009 , bringing annual average growth over the whole period to 1. 9 per cent. GP-prescribed drugs increased most rapidly between 1995 and 2009, averaging 8. 6 per cent a year. The growth rate has slowed since 2000, to 4,9% in 2009. Despite having the lowest expenditure weight, the contribution to growth of GP-prescribed drugs exceeds that of FHS. Political, social and legal environment conditions in the UK Political and legal conditions: * Principal Government Officials * Head of State–Queen Elizabeth II Prime Minister (Head of Government)–David Cameron (Conservative Party) * Deputy Prime Minister–Nick Clegg (Liberal Democrat Party) * Secretary of State for Foreign and Commonwealth Affairs–William Hague * Ambassador to the U. S. —Sir Peter Westmacott * Ambassador to the UN–Mark Lyall Grant Government: The UK has a parliamentary government based on the Westminster system that has been emulated around the world—a legacy of the British Empire. The parliament of the United Kingdom that meets in the Palace of Westminster has two houses; an elected House of Commons and an appointed House of Lords.
Any bill passed requires Royal Assent to become law. The position of prime minister, the UK’s head of government, belongs to the member of parliament who can obtain the confidence of a majority in the House of Commons, usually the current leader of the largest political party in that chamber. The prime minister and cabinet are formally appointed by the monarch to form Her Majesty’s Government, though the prime minister chooses the cabinet and, by convention, the Queen respects the prime minister’s choices. The UK’s three major political parties are the Conservative Party, the Labour Party and the Liberal Democrats.
During the 2010 general election these three parties won 622 out of 650 seats available in the House of Commons: 621 seats at the general election and 1 more at the delayed by-election in Thirsk and Malton.  Most of the remaining seats were won by minor parties that only contest elections in one part of the UK: the Scottish National Party (Scotland only); Plaid Cymru (Wales only); and the Democratic Unionist Party, Social Democratic and Labour Party, Ulster Unionist Party, and Sinn Fein (Northern Ireland only, though Sinn Fein also contests elections in the Republic of Ireland).
Devolved administrations: Scotland, Wales and Northern Ireland each have their own devolved government or executive, led by a First Minister (or, in the case of Northern Ireland, a diarchal First Minister and deputy First Minister), and a devolved unicameral legislature. England, the largest country of the United Kingdom, has no devolved executive or legislature and is administered and legislated for directly by the UK government and parliament on all issues.
The Scottish Government and Parliament have wide-ranging powers over any matter that has not been specifically ‘reserved’ to the UK parliament, including education, healthcare, Scots law and local government. At the 2011 elections the SNP won re-election and achieved an overall majority in the Scottish parliament, with its leader, Alex Salmond, as First Minister of Scotland. The Welsh Government and the National Assembly for Wales have more limited powers than those devolved to Scotland.
The Assembly is able to legislate on devolved matters through Acts of the Assembly, which require no prior consent from Westminster. The 2011 elections resulted in a minority Labour administration led by Carwyn Jones. The Northern Ireland Executive and Assembly have powers closer to those already devolved to Scotland. The Executive is led by a diarchy representing unionist and nationalist members of the Assembly.
Currently, Peter Robinson (Democratic Unionist Party) and Martin McGuinness (Sinn Fein) are First Minister and deputy First Minister respectively. In general, its appropriately to note that UK doesn’t have a written constitution, Despite the fact doctrine of Parliamentary sovereignty abolishes the Scottish Parliament, Welsh Assembly or Northern Ireland Assembly Law and criminal justice: The United Kingdom does not have a single legal system, as Article 19 of the 1706 Treaty of Union provided for the continuation of Scotland’s separate egal system. Today the UK has three distinct systems of law: English law, Northern Ireland law and Scots law. The Judicial Committee of the Privy Council, including the same members as the Supreme Court, is the highest court of appeal for several independent Commonwealth countries, the British Overseas Territories, and the Crown Dependencies. Both English law, which applies in England and Wales, and Northern Ireland law are based on common-law principles.
The essence of common law is that, subject to statute, the law is developed by judges in courts, applying statute, precedent and common sense to the facts before them to give explanatory judgments of the relevant legal principles, which are reported and binding in future similar cases (stare decisis). The courts of England and Wales are headed by the Senior Courts of England and Wales, consisting of the Court of Appeal, the High Court of Justice (for civil cases) and the Crown Court (for criminal cases).
The Supreme Court is the highest court in the land for both criminal and civil appeal cases in England, Wales, and Northern Ireland and any decision it makes is binding on every other court in the same jurisdiction, often having a persuasive effect in other jurisdictions. The High Court of Justiciary – the supreme criminal court of Scotland. Scots law is a hybrid system based on both common-law and civil-law principles. The chief courts are the Court of Session, for civil cases, and the High Court of Justiciary, for criminal cases. The Supreme Court of the United Kingdom serves as the highest court of appeal for civil cases under Scots law.
Sheriff courts deal with most civil and criminal cases including conducting criminal trials with a jury, known as sheriff solemn court, or with a sheriff and no jury, known as sheriff summary Court. The Scots legal system is unique in having three possible verdicts for a criminal trial: “guilty”, “not guilty” and “not proven”. Both “not guilty” and “not proven” result in an acquittal with no possibility of retrial. In this part of report some latest provided researches are presented in order to make an introduction in actual social problems of the UK. Some statements in reports are based on information from UK temporary magazine.
Crime in UK: * Of the Prison population in the UK: * 67% were unemployed in the four weeks before their imprisonment, * compared to 5% of the general population. * 27% had been taken into local authority care as a child compared to 2% of * children in the general population. * 52% of the male and 71% of the female prison population have no education * qualifications, compared to 15% of the general population. * Crimes with a clear economic motive: Robbery (2%), Burglary (12%), Offenses * against Vehicles (13%), other thefts (23%) and Fraud and forgery (3%) account for * 55% of all police recorded crimes in 2007/2008.
In the British Crime Survey of 2008, * economically motivated crimes: Burglary (7%), Vehicle-related theft (15%) and other * thefts (30%) accounted for 52% of all crimes. Racist violence and the UK night-time economy: Racist violence remains an endemic problem in British society, though the geography has changed: more and more victims are increasingly vulnerable at night. Black and minority ethnic minicab drivers, shop workers and takeaway owners face a high risk of racist attack, according to the IRR (Racial violence and the night-time economy , February 2011). The victims are especially at risk on a Friday and Saturday night.
In 2009, for example, eight out of 10 victims of racist attacks were men and 12% of attacks happened in people’s homes, with more than a third taking place in streets, car parks, parks and other open spaces. One in three incidents took place over the weekend. In many of the incidents the attacks were unprovoked and were perpetrated by assailants who did not know their victim. The night-time economy has played a crucial role in the regeneration of many areas of Britain, and has expanded hugely in the past decade as licensing laws are relaxed. In 2010 one estimate put the value of the night-time economy at over ? 6 billion pounds each year. Official statistics suggest that the overall number of racist incidents recorded by the police in England and Wales peaked at 61,262 in 2006-07, and that it has declined slightly since. However, in 2009-10, three police force areas – Derbyshire, City of London and Suffolk – registered increases in racist incidents greater than 25%, while Northamptonshire, North Yorkshire, Wiltshire and Gwent registered decreases greater than 25%. In Scotland, increased levels of Islamophobia and negative attitudes towards Polish people could be behind a 20% rise in racist incidents last year.
Every day in Scotland, 17 people are abused, threatened or violently attacked because of the colour of their skin, ethnicity or nationality: 6,171 incidents of racism were recorded in 2009/10, a rise of 20. 4% from the 5,123 racist incidents recorded in 2008/9. The figures, revealed in a freedom of information request to Scotland’s eight police forces, come despite there only being a 13% increase over the previous five years. Part of the rise is thought to be down to an increase in anti-Polish attacks, with the Federation of Poles in Great Britain saying there has been an annual 20% rise in racist incidents.
Another social problem , that must be taken under control of appropriate authorities is threating and assaulting LGBT (lesbian, gay, bi and transgender people). Such a problem as self-harm after being bulled because of being transgender sexuality is closely linked to problem of intolerance towards LGBT people. According to statistics of the latest researches , 47 % of assaulted young people have received threats or intimidation as a result of being gay or lesbian.
The biggest youth social research project( Youth Chances) into LGBT people figured out due to surveyed people that the rates of self-harm were significantly higher among young gay women, two-thirds of whom said they had hurt themselves on purpose, compared to 37 per cent of men. Experts are particularly concerned by the statistics on self-harm, which are significantly higher than the national average of one in 12 young people. Despite of legislation of gay and lesbian marriages and equal age of consent – people tend to have prejudices and bull transgender people.
Youth Chances believes its research shows that public attitudes have yet to catch up with the legal system. Competitiveness indicators Before estimating and comparing micro and macroeconomic indices of the UK , the report shows basic information regarding to both world’s economic status the and its domestic regulations. The UK has a partially regulated market economy. Based on market exchange rates the UK is today the sixth-largest economy in the world and the third-largest in Europe after Germany and France, having fallen behind France for the first time in over a decade in 2008.
HM Treasury, led by the Chancellor of the Exchequer, is responsible for developing and executing the British government’s public finance policy and economic policy. The Bank of England is the UK’s central bank and is responsible for issuing the nation’s currency, the pound sterling. Banks in Scotland and Northern Ireland retain the right to issue their own notes, subject to retaining enough Bank of England notes in reserve to cover their issue. Pound sterling is the world’s first-largest reserve currency (above the U. S. Dollar and the Euro).
Since 1997 the Bank of England’s Monetary Policy Committee, headed by the Governor of the Bank of England, has been responsible for setting interest rates at the level necessary to achieve the overall inflation target for the economy that is set by the Chancellor each year. Competitiveness indicators of the United Kingdom. Table 4 shows the general macroeconomic indicators regarding to the UK. KEY INDICATORS, 2011| Population (millions)| 65,3| GDP (US dollars billions)| 2,417. 6| GDP per capita (US dollars)| 38,592| GDP (PPP) as share (%) of world total| 2,87|
Table source : Competitiveness indicators overall the world , World Economic forum report Usual GDP rate shows 2,417. 6 us dollars and it means that currently economy of the UK is in at the third stage of economy development , namely innovation-driven stage. As to GDP per capital it has increased for the last two years for 2 percents. GDP valued at purchased power parity is has decreased for the last two years at 0,7 per cents. In 2011-2012 years United Kingdom has taken 8th place in Global Competitiveness Indicator rate within the top-10 developed countries ranking.
Referring to subindexes , United Kingdom is the 24th ranked country for basic requirements subindex rate, the 4th country for efficiency enhancers rate and the 9th ranked country for innovation and business sophistication subindex rate. Pointing quite large difference between subindexes of basic requirements and other two, its opportunely to note that UK is 110th ranked country at macroeconomic environment pillar of basic requirement subindex which causes the difference between subindexes rankes. Such rank is a result of entire country’s negative factors as corruption, politic instability and low export reliance.
In any case UK demonstrates a growth in GCI rank from 12th place in 2010-2011 to 8th place in 2012-2013. The below table presents a global competitiveness indicator divided to subindexes which determine current country’s macroeconomic reality. Table 5 Global Competitiveness Index Rank out of 144 Score GCI 2012-2013| 8| 5. 4| GCI 2011-2012 (out of 142)| 10| 5. 4|
GCI 2010-2011 (out of 139)| 12| 5. 3| Basic requirements (20. 0 %)| 24| 5. 5| Institutions| 13| 5. 4| Infrastructure| 6| 6. 2| Macroeconomic environment| 110| 4. 0| Health and primary education| 17| 6. 4| Efficiency enhancers (50. 0 %)| 4| 5. 5| Higher education and training| 16| 5. 6| Goods market efficiency| 17| 5. 1| Labour market efficiency| 5| 5. 4| Financial market development| 13| 5. 2| Technological readiness| 7| 6. 0| Market size| 6| 5. 8| Innovation and sophistication factors (30. 0 %)| 9| 5. 3| Business sophistication| 8| 5. 5| Innovation| 10| 5. 2|
Table Source: Competitiveness indicators overall the world , World Economic forum report The percentage value is a weight of each subindex and its adequate to the appropriate economic stages with its level. 20% percentage of basic requirements means that UK is in a transition stage between efficiency driven stage and innovation-driven stage. And efficiency enhancers subindex is adequate to first transition stage between factor-driven stage and efficiency driven stage. The last subindex of GCI have a weight of innovation driven stage. All the scales are set in its specific way to summarize and get a percentage value of general country’s conomic level afterwards. Analyzing all the key subindexes , there are the following conclusioins: * The country improves its performance in several areas, benefitting from clear strengths such as the efficiency of its labor market (5th), in sharp contrast to the rigidity of those of many other European countries. * The United Kingdom continues to have sophisticated (8th) and innovative (10th) businesses that result in adapting the latest technologies for productivity improvements and possibility to operate in a very large market (it is ranked 6th for market size). The fiscal deficit nearing 9 percent and increase in 5 percentage points in public debt amouting to 82,5 percent of GDP in 2011. Doing business conditions The table below demonstrates the rate of negative factors for doing business. Information is drawn from the Opinion Survey which was provided among business world’s executive. The data was collected in 2012. From a list of 16 factors, respondents were asked to select the five most problematic and rank them from 1 (most problematic) to 5. The results were then tabulated and weighted according to the ranking assigned by respondents. Table 6 The most problematic factors for doing business| . Access to financing| 15. 3| 2. Tax rates| 15. 3| 3. Tax regulations| 10. 2| 4. Insufficient capacity to innovate| 9. 5| 5. Inefficient government bureaucracy| 8. 6| 6. Inadequately educated workforce| 7. 9| 7. Inadequate supply of infrastructure| 6. 9| 8. Restrictive labor regulations| 6. 4| 9. Poor work ethic in national labor force| 6. 0| 10. Inflation| 5. 8| 11. Policy instability| 5. 5| 12. Poor public health| 0. 9| 13. Foreign currency regulation| 0. 7| 14. Crime and theft| 0. 6| 15. Corruption| 0. 4| 16. Government instability/coups| 0. 0| Table source: GCI reported prepared by Worls Economic Forum Group
As its demonstrated in table, respodents of the UK considers access to financing factor tobe thmost problematic, because it was scored with the highest value as it has got most of responses as well as tax rates tax regulations. For already established and made up its ground firm also may cause new difficulties in the foreign country and might lead to firm’s elimination otherwise some special tax payment programs are provided for foreign companies. Specific data was collected for reveal UK entrepreneurship environment including necessary details which explain potential consequences for company is about to enter UK market.
DEALING WITH CONSTRUCTION PERMITS What does it take to comply with the formalities to build a warehouse in United Kingdom? According to data collected by Doing Business, dealing with construction permits there requires 9 procedures, takes 99 days and costs 62. 4% of income per capita. Graph no. 6 shows the complicity of the formalities to build warehouse in United Kingdom Graph 6 Graph Source: Doing Business Report, United Kingdom Edition 2012. From the second procedure to the final one it takes much less time to start up a business in UK but for the costof more money to spend.
REGISTERING PROPERTY What does it take to complete a property transfer in United Kingdom? According to data collected by Doing Business, registering property there requires 6 procedures, takes 29 days and costs 4. 7% of the property value. Graph no. 7 reflects relativity of all the aspects related to property registration procedure. Graph source: Doing Business Report, United Kingdom Edition 2012 In order to keep some costs at lower level it would be more advantageously to rent estate instead of registering it. PAYING TAXES
On average, firms make 8 tax payments a year, spend 110 hours a year filing, preparing and paying taxes and pay total taxes amounting to 35. 5% of profit (see the summary at the end of this chapter for details). Globally, United Kingdom stands at 16 in the ranking of 185 economies on the ease of paying taxes (table 7). Table no. 7 reflects the United Kingdom and comparator economies rank on ease of paying taxes. Table 7 Table source: Doing Business Report, United Kingdom Edition 2012 Data presented below shows which aspects of the process have changed — and which have not (table 8).
It can help to identify where the potential for easing tax compliance is greatest. Table no. 8 demonstrates the ease of paying taxes in UK for the last two years Table 8 Indicator| 2012| 2013| Rank| 19| 16| Payments ( number per year)| 8| 8| Time ( hours per year)| 110| 110| Total tax rate (% profit)| 37. 3| 35. 5| Table source: Doing Business Report, United Kingdom Edition 2012 UK is predicted to get 16th rank ( 3 ranks raise ) and it may mean that tax regulations in country are about to be both revised and improved, however policies related to foreign entrepreneurs are decisive in the case of company.
To summarize, it will take at the average 110 hours per year to pay all the 8 taxes and will cost approximately quarter of all the profit. Another very important factor that must be taken into account is trading across borders. Basically, to import a standard container of goods requires 4 documents, takes 6 days and costs $1045 dollars. The table below focuses on the basic factors that are the core of the procedures. Table 9 Indicator| 2012| 2013| Rank| 15| 14| Documents to import (number)| 4| 4| Time to import (days)| 6| 6| Cost to import (US dollars per container)| 1,045| 1,045|
Table source: Doing Business Report, United Kingdom Edition 2012 UK is ranked as 15th country on the ease of trading across borders of 185 economies in the world. This is considerably high rank on the world’s and European scale but in 2013 none of any great improvements are going to be implemented to import main procedures. Possessing this kind of information regarding to prices and time will ease calculating costs related to international trade. RESOLVING INSOLVENCY The last factor includes such aspects as asset costs, speed and continuation of viable business.
In a case of UK relevant data is presented to learn whether the efficiency of insolvency proceedings has changed or not during the last 2 years. Table no. 10 demonstrates the ease of resolving insolvency pointing such main aspects as time, cost in respect to debtor’s estate and recovery rate. The recovery rate is a function of time, cost and other factors, such as lending rate and the likelihood of the company continuing to operate. In the case of insolvency indicators , report revises all the measures that determine each on insolvency indicator.
In detail , cost required to recover debt is measured as percentage of estate value, and practically is denominated by summary of court fees, fees of insolvency administrators, lawyers‘ fees, assessors‘ and auctioneers‘ fees other related fees; recovery rate for creditors measures the cents on the dollar recovered by creditors, present value of debt recovered, also it is to be noted that Official costs of the insolvency proceedings are deducted and depreciation of furniture is taken into account. In general , outcome for the business affects the maximum value that can be recovered.
Table 10 Indicator| 2012| 2013| Rank| 6| 8| Time (years)| 1. 0| 1. 0| Cost (% of estate)| 6| 6| Recovery rate (cents on the dollar)| 88. 6| 88. 6| Table source: Doing Business Report, United Kingdom Edition 2012 UK will fall down in two places of ranking , which is predicted for the next year. Recovery rate within the UK is kept at high level ( more than 50% of par debt value) and demonstrates quite average speed( one year) of proceedings that might be facilitative in the most of financial stressed companies or economically inefficient.
The last data which is presented below is to generalize entrepreneurship environment in UK. UK is ranked as 7th country on the ease of doing business among United States, Japan, Germany, Ireland, OECD high income countries and France. From the global point of view, UK is ranked for each decisive indicator on the ease of doing business, which is presented on the graph below. Graph 8 Graph Source: Doing Business Database As its shown, The most problematic factor is registering property to be considered and getting electricity.
A high ranking does mean that the government has created a regulatory environment conducive to operating a business, but low rank for those two indicators might mean non-lucrative tariffs and instability in mortgage market due to price fluctuations, bribes, complicity of legitimation the mortgage attached. That can be problematic only in case of purchasing estate but it can make undesirable consequences for company until it has entered the market and chosen the tax tariff.
Bibliography Wikipedia/United Kingdom Office for National Statistics/United Kingdom; ons. gov. k/database World Economic Forum/ Global Competitiveness report 2012-2013 http://www. weforum. org/en/initiatives/gcp/Global%20Competitiveness%20Report/ index. htm Business Environment in United Kingdom 2012-2013 by Doing Business Group/ http://www. doingbusiness. org/ ——————————————– [ 1 ]. https://www. cia. gov/library/publications/the-world-factbook/geos/uk. html [ 2 ]. http://en. wikipedia. org/wiki/United_Kingdom#Geography [ 3 ]. http://en. wikipedia. org/wiki/United_Kingdom#Geography [ 4 ]. https://www. cia. gov/library/publications/the-world-factbook/geos/uk. tml [ 5 ]. http://www. infoplease. com/ipa/A0108078. html [ 6 ]. http://en. wikipedia. org/wiki/United_Kingdom#Climate [ 7 ]. http://www. state. gov/r/pa/ei/bgn/3846. htm [ 8 ]. https://www. cia. gov/library/publications/the-world-factbook/geos/uk. html [ 9 ]. In British nationality law, a Commonwealth citizen is a person who is either a British Citizen, British Overseas Territories Citizen, British Overseas Citizen, British Subject, British National (Overseas) or a national of a country listed in Schedule 3 of the British Nationality Act 1981. Most other Commonwealth countries have provisions within their own law defining who is and who is not a Commonwealth citizen. Each country is free to determine what special rights, if any, are accorded to non-nationals who are Commonwealth citizens. In general, citizens of the Republic of Ireland and British protected persons, although not Commonwealth citizens, are accorded the same rights and privileges as Commonwealth citizens. [ 10 ]. http://www. ons. gov. uk/ons/rel/wellbeing/measuring-national-well-being/education-and-skills/art-education-and-skills. tml#tab-Education-expenditure [ 11 ]. The General Certificate of Secondary Education (GCSE) is an academic qualification awarded in a specified subject, generally taken in a number of subjects by students aged 14–16 in secondary education in England, Wales and Northern Ireland and is equivalent to a Level 2 (A*- C) and Level 1 (D- G) in Key Skills. [ 12 ]. http://en. wikipedia. org/wiki/United_Kingdom#Government [ 13 ]. http://en. wikipedia. org/wiki/United_Kingdom#Government [ 14 ].