UK Economic System

The UK has a mixed economy that leans towards a free market with some government controlled parts.

The UK has fairly free economy; it is one of the freest countries in Europe. It’s economy was built on the foundation of open trading and an advanced financial sector. It is a powerful trading company. The UK also has efficient businesses and a free labor market. Several of the UK’s most prominent industries have been privatized, such as British Rail, British Airways, and British Petroleum.

"Historically a champion of economic freedom in Europe, the United Kingdom has developed its economy based on a strong rule of law, an open trading environment, and one of the world’s most advanced financial sectors. A relatively liberal labor market by European standards complements one of the world’s most efficient business environments."  (read more here)

However, the UK does have large rates of government spending, so the economy is still mixed between the public and private sector. The government provides many resources free for its citizens, such as healthcare, substantial welfare benefits, and education, among other things. This is funded by high tax rates. The highest individual UK tax rate currently is 45%.

There are also elements of a traditional economy still present in the UK, as they still have a Queen. The Queen brings in money from tourism, however there is still a large cost needed to provide for the Royal Family, so this section of the economy is very small.

UK Group: Ruby, Emily, Kayla

Land Resources in the UK

The United Kingdom has tons of different land resources at their disposal. These resources include coal, natural gas, oil, and agricultural resources such as wheat, barley, and livestock. 

The UK is the largest producer of oil and the second largest producer of natural gas within the European Union. Despite this, in more recent years. the UK has used more natural gas and oil than they produce. Coal was a major important resource, because it became a foundation for the UK’s modern economy. However, the mining of coal is on a decline, as resources are slowly starting to be used up. The last deep pit coal mine is scheduled to close in August of 2016.

As stated by britannica.com:

“By contrast, the United Kingdom has larger energy resources—including oil, natural gas, and coal—than any other EU member. Coal, the fuel once vital to the British economy, has continued to decrease in importance. The discovery of oil in the North Sea and the apportionment of its area to surrounding countries led to the rapid development of oil exploitation. Since the start of production in 1975, the quantities brought ashore have grown each year, and the United Kingdom has become virtually self-sufficient in oil and even an exporter. With an average output of nearly three million barrels per day at the beginning of the 21st century, the country was one of the world’s largest producers.” (more on this here)

The UK also has many agricultural resources, with it's largest crops being wheat and barley. However, the UK has maintained a high amount of self-sustainability, being that it produces enough grains for human consumption, and for the creation of animal feed. This allows for the UK to be skilled in raising livestock such as cattle, sheep, pigs, and poultry.

Map of wheat production:

All of these resources are used to form the skeleton of the country's industry, allowing their economy to grow. While manufacturing is at a decline, fishing and farming are still a common source of profit. The use of oil and coal provide the UK with natural energy. They could be taking advantage of water power as a natural energy source as well, although this isn't being used on a commercial basis. All of these factors contribute to the UK's high economic standing.

Group UK: Kayla, Emily, Ruby