Economy of the United Kingdom
It is the second-largest economy in the European Union by both metrics. The UK is one of the strongest EU countries in regards to GDP growth, job creation and it is one of the most globalised economies, and is composed of the economies of England, Scotland and Northern Ireland. Britains aerospace industry is the second- or third-largest national aerospace industry depending on the method of measurement and its pharmaceutical industry plays an important role in the economy and the UK has the third-highest share of global pharmaceutical research and development. Of the worlds 500 largest companies,26 are headquartered in the UK, the British economy is boosted by North Sea oil and gas production, its reserves were estimated at 2.9 billion barrels in 2015, although it has been a net importer of oil since 2005. There are significant regional variations in prosperity, with South East England, the size of Londons economy makes it the largest city by GDP in Europe. In the 18th century the UK was the first country to industrialise, from the late 19th century the Second Industrial Revolution was taking place rapidly in the United States and the German Empire, this presented an increasing economic challenge for the UK.
The costs of fighting World War I and World War II further weakened the UKs relative position, in the 21st century, however, it remains a great power and has an influential role in the world economy. Since 1979 management of the economy has followed a broadly laissez-faire approach, the Bank of England is the UKs central bank and its Monetary Policy Committee is responsible for setting interest rates, quantitative easing, and forward guidance. 5% until the early 1970s. According to the OECD, the rate of growth between 1960 and 1973 averaged 2. 9%, although this figure was far behind the rates of other European countries such as France, West Germany. Deindustrialization meant the closure of operations in mining, heavy industry and manufacturing. A certain amount of turnover had always taken place, with older businesses shutting down, the post-1973 scene was different, with a worldwide energy crisis, and a dramatic influx of low-cost manufactured goods from Asia. Coal mining quickly collapsed, and practically disappeared in the 21st century, the consumption of coal--mostly for electricity--plunged from 157 million tonnes in 1970 to 37 million tonnes in 2015, nearly all of it imported.
Employment in the mines fell from a peak of 1,191,000 in 1920 to 695,000 in 1956,247,000 in 1976,44,000 in 1993. The railways were decrepit, more textile mills closed than opened, steel employment fell sharply, popular responses varied a great deal. Tim Strangleman et al. found a range of responses from the affected workers, some nostalgically invoked a glorious industrial past or the bygone British Empire to cope with their newfound personal economic insecurity. Others looked to the EU for help, some turned to exclusionary Englishness as the solution to current grievances. By the 21st century, grievances accumulated enough to have a political impact, the United Kingdom Independence Party, based in white working-class towns, gained increasing share of the vote while warning against the dangers of immigration. The political reverberations came to a head in the vote in favor of Brexit in 2016
The Independent is a British online newspaper. The printed edition of the paper ceased in March 2016, nicknamed the Indy, it began as a broadsheet newspaper, but changed to tabloid format in 2003. Until September 2011, the paper described itself on the banner at the top of every newspaper as free from party political bias and it tends to take a pro-market stance on economic issues. The daily edition was named National Newspaper of the Year at the 2004 British Press Awards. In June 2015, it had a daily circulation of just below 58,000,85 per cent down from its 1990 peak. On 12 February 2016, it was announced that The Independent, the last print edition of The Independent on Sunday was published on 20 March 2016, with the main paper ceasing print publication the following Saturday. Launched in 1986, the first issue of The Independent was published on 7 October in broadsheet format and it was produced by Newspaper Publishing plc and created by Andreas Whittam Smith, Stephen Glover and Matthew Symonds.
All three partners were former journalists at The Daily Telegraph who had left the paper towards the end of Lord Hartwells ownership, marcus Sieff was the first chairman of Newspaper Publishing, and Whittam Smith took control of the paper. The paper was created at a time of a change in British newspaper publishing. Rupert Murdoch was challenging long-accepted practices of the print unions and ultimately defeated them in the Wapping dispute, production costs could be reduced which, it was said at the time, created openings for more competition. As a result of controversy around Murdochs move to Wapping, the plant was effectively having to function under siege from sacked print workers picketing outside, the Independent attracted some of the staff from the two Murdoch broadsheets who had chosen not to move to his companys new headquarters. Launched with the advertising slogan It is, and challenging both The Guardian for centre-left readers and The Times as the newspaper of record, The Independent reached a circulation of over 400,000 by 1989.
Competing in a market, The Independent sparked a general freshening of newspaper design as well as, within a few years. Some aspects of production merged with the paper, although the Sunday paper retained a largely distinct editorial staff. It featured spoofs of the other papers mastheads with the words The Rupert Murdoch or The Conrad Black, a number of other media companies were interested in the paper. Tony OReillys media group and Mirror Group Newspapers had bought a stake of about a third each by mid-1994, in March 1995, Newspaper Publishing was restructured with a rights issue, splitting the shareholding into OReillys Independent News & Media, MGN, and Prisa. In April 1996, there was another refinancing, and in March 1998, OReilly bought the other 54% of the company for £30 million, brendan Hopkins headed Independent News, Andrew Marr was appointed editor of The Independent, and Rosie Boycott became editor of The Independent on Sunday. Marr introduced a dramatic if short-lived redesign which won critical favour but was a commercial failure, Marr admitted his changes had been a mistake in his book, My Trade
Old boy network
An old boy network, or society, can refer to social and business connections among former pupils of male-only private schools. The term originated from much of the British elite having attended public schools as boys. This can apply to the network between the graduates of a single school regardless of their gender and it is known as an old boy society and is similar to an alumni association. It can mean a network of social and business connections among the alumni of various prestigious schools, the phrase Its not what you know, its whom you know is associated with this tradition. In Australia, the term Old Boy is used to describe a male alumnus of some state and private schools. The term Old Girl is similarly used for a female alumna of such schools, in Australia there was academic research in 1988 to identify the extent of the Old Boy/Girl network among Australias elite, using Whos Who in Australia as a sample of people in elite positions. This research shows that a number of private and selective state schools have Old Boys/Old Girls who disproportionately hold elite positions in Australian society.
As such, the term is pejorative, the term derives from the salutation Hyvä veli. or Dear brother. Traditionally used to open a letter to a not quite intimate friend, there is an equivalent term, hyvä sisko, used in reference to informal networks of women in high positions. President Urho Kekkonen was notable for communicating with senior officials by means of letters. These have been published in three volumes and this practice exceeded his official powers, but he exercised his informal influence. The Doon School maintains its own old boys society for social connections, graduates of The Doon School are known as Doscos, or simply, as Old Boys. Former students of the Welham Boys School refer to their society as the Welham Old Boys Society, though the school was founded in 1937, the society was not founded until 1983. The group is intended to encourage Welham graduates to aid in the schools success through their union, they have established scholarships, the Welham Old Boys Network has established definite membership criteria, as well as requiring a subscription fee.
Similarly the Old Boys of Sainik School Rewa in Madhya Pradesh call their Old Boys Association as Sainwinians, an organisation called Future First promotes the use of such networks among those educated at state schools. The term can refer to the networks that are set up in the more elite secondary schools, such as Diocesan Boys School, Queens College, Ying Wa College, La Salle College. This expression derives from the wearing of ties by former pupil. This practice is common now than in former times
Financial District, Manhattan
The neighborhood roughly overlaps with the boundaries of the New Amsterdam settlement in the late 17th century. The Financial District has witnessed growth in its population to approximately 43,000 as of 2014, the Financial District encompasses roughly the area south of City Hall Park in Lower Manhattan but excludes Battery Park and Battery Park City. The former World Trade Center complex was located in the neighborhood until the September 11 attacks, the heart of the Financial District is often considered to be the corner of Wall Street and Broad Street, both of which are contained entirely within the district. Until the late 20th and early 21st century, the neighborhood was considered to be primarily a destination for daytime traders and office workers from around New York City, the Financial District is part of Manhattan Community Board 1, which includes five other neighborhoods. The Financial District has a number of tourist attractions such as the adjacent South Street Seaport Historic District, the New York City Police Museum, bowling Green is the starting point of traditional ticker-tape parades on Broadway, where here it is known as the Canyon of Heroes.
The Museum of Jewish Heritage and the Skyscraper Museum are both in adjacent Battery Park City which is home to the World Financial Center
United Kingdom company law
The United Kingdom company law regulates corporations formed under the Companies Act 2006. Also governed by the Insolvency Act 1986, the UK Corporate Governance Code, European Union Directives and court cases, the company is the primary legal vehicle to organise and run business. Tracing their modern history to the late Industrial Revolution, public companies now employ more people, Company law, or corporate law, can be broken down into two main fields. Corporate governance in the UK mediates the rights and duties among shareholders, since the board of directors habitually possesses the power to manage the business under a company constitution, a central theme is what mechanisms exist to ensure directors accountability. UK law is shareholder friendly in that shareholders, to the exclusion of employees, the general meeting holds a series of minimum rights to change the company constitution, issue resolutions and remove members of the board. In turn, directors owe a set of duties to their companies, Directors must carry out their responsibilities with competence, in good faith and undivided loyalty to the enterprise.
If the mechanisms of voting do not prove enough, particularly for minority shareholders, directors duties, of central importance in public and listed companies is the securities market, typified by the London Stock Exchange. Through the Takeover Code the UK strongly protects the right of shareholders to be treated equally and freely trade their shares, Corporate finance concerns the two money raising options for limited companies. Equity finance involves the method of issuing shares to build up a companys capital. Debt finance means getting loans, usually for the price of an annual interest repayment. Creditors are also, to some extent, protected by courts power to set aside unfair transactions before a company goes under, if a company is unable to pay its debts as they fall due, UK insolvency law requires an administrator to attempt a rescue of the company. If rescue proves impossible, a companys life ends when its assets are liquidated, distributed to creditors, if a company becomes insolvent with no assets it can be wound up by a creditor, for a fee, or more commonly by the tax creditor.
Company law in its modern shape dates from the mid-19th century, in medieval times traders would do business through common law constructs, such as partnerships. Whenever people acted together with a view to profit, the law deemed that a partnership arose, early guilds and livery companies were often involved in the regulation of competition between traders. As England sought to build a mercantile Empire, the government created corporations under a Royal Charter or an Act of Parliament with the grant of a monopoly over a specified territory, the best known example, established in 1600, was the British East India Company. Queen Elizabeth I granted it the right to trade with all countries to the east of the Cape of Good Hope. Corporations at this time would act on the governments behalf. A similar chartered company, the South Sea Company, was established in 1711 to trade in the Spanish South American colonies, in fact the Spanish remained hostile and let only one ship a year enter
Open outcry is the name of a method of communication between professionals on a stock exchange or futures exchange typically on a trading floor. It involves shouting and the use of signals to transfer information primarily about buy. The part of the floor where this takes place is called a pit. In an open auction and offers must be made out in the open market giving all participants a chance to compete for the order with the best price. New bids or offers would be made if better than previous pricing for efficient price discovery, exchanges value positions marked to these public market prices on a daily basis. In contrast, over-the-counter markets are where bids and offers are negotiated privately between principals, since the development of the stock exchange in the 17th century in Amsterdam, open outcry was the main method used to communicate between traders. However, this started changing in the half of the 20th century, first through the use of telephone trading. As of 2007 few exchanges still have floor trading using open outcry, the supporters of electronic trading claim that they are faster, more efficient for users, and less prone to manipulation by market makers and broker/dealers.
As of 2010 most stocks and futures contracts are no longer traded using open outcry due to the lower cost of the technological advances. Since the 1980s the open systems have been being replaced by electronic trading systems. These venues are typically stock exchanges or futures exchanges and transactions are executed by members of such an exchange using specific language or hand signals, during the 1980s and 1990s phone and electronic trading replaced physical floor trading in most exchanges around the world. As of 2007 few exchanges still have floor trading, one example is the New York Stock Exchange which still executes a small percentage of its trades on the floor. That means that the traders actually form a group around the post on the floor of the market for the specialist, someone that works for one of the NYSE member firms and handles the stock. As in an auction, there are shouts from those that want to sell, the specialist facilitates in the match and centralizing the trades. A small group of extremely high-priced stocks isnt on this system and is still auctioned on the trading floor.
Even though over 82 percent of the trades take place electronically, while electronic trading is faster and provides for anonymity, there is more opportunity to improve the price of a share if it goes to the floor. Investors maintain the right to select the method they want to use, the London Stock Exchange moved to electronic trading in 1986. The Borsa Italiana, Italys stock market, located in Milan, the Bombay Stock Exchange, embraced electronic trading in 1995 by introducing the BSE Online Trading System on 14 March 1995
Nigel Lawson, Baron Lawson of Blaby, PC is a British Conservative politician and journalist. He was a member of parliament representing the constituency of Blaby from 1974 to 1992, prior to entering the Cabinet, he served as the Financial Secretary to the Treasury from May 1979 until his promotion to Secretary of State for Energy. He was appointed as Chancellor of the Exchequer in June 1983, in both Cabinet posts, Lawson was a key proponent of Thatchers policies of privatisation of several key industries. He is the father of six children, including Nigella Lawson, a writer and celebrity cook, Dominic Lawson, a journalist. Lawson was born in 1932 to a wealthy Jewish family living in Hampstead and his father, Ralph Lawson, was the owner of a commodity-trading firm in the City of London, while his mother, Joan Elisa Davis, was from a prosperous family of stockbrokers. His paternal grandfather, Gustav Leibson, a merchant from Mitau, changed his name from Leibson to Lawson in 1925, Lawson carried out his National Service as a Royal Navy officer, during which time he commanded a fast patrol boat, HMS Gay Charger.
Lawson began his career as a journalist at the Financial Times in 1956 and he progressed to the positions of City editor of The Sunday Telegraph in 1961 – where he introduced his friend Jim Slaters Capitalist investing column – and editor of The Spectator. On the election of Margaret Thatchers government, Lawson was appointed to the post of Financial Secretary to the Treasury, in the Cabinet reshuffle of September 1981, Lawson was promoted to the position of Secretary of State for Energy. He was a key proponent of the Thatcher Governments privatisation policy, after the Governments re-election in 1983, Lawson was appointed Chancellor of the Exchequer in succession to Geoffrey Howe. The early years of Lawsons chancellorship were associated with tax reform, the 1984 Budget reformed corporate taxes by a combination of reduced rates and reduced allowances. The 1985 Budget continued the trend of shifting from direct to indirect taxes by reducing National Insurance contributions for the lower-paid while extending the base of value added tax.
During these two years Lawsons public image remained low-key, but from the 1986 Budget, his stock rose as unemployment began to fall from the middle of 1986. Lawson changed the budget deficit from £10.5 billion in 1983 to a surplus of £3.9 billion in 1988 and £4.1 billion in 1989. During his tenure the rate of taxation came down, the basic rate was reduced from 30% in 1983 to 25% by 1988. In 1986 the City of Londons financial markets were deregulated in the so-called Big Bang, in an interview in 2010 Nigel Lawson said that an unintended consequence of the Big Bang was the financial crisis of 2007-2008. Lawson, in his own defence, attributes the boom largely to the effects of various measures of financial deregulation, Lawson ascribes the difficulty of conducting monetary policy to Goodharts Law. His tax cuts, beginning in 1986, resulted in the Lawson Boom of the British economy, Lawson opposed the introduction of the Community Charge as a replacement for the previous rating system for the local financing element of local government revenue.
His dissent was confined to deliberations within the Cabinet, where he found few allies, the issue of exchange-rate mechanism membership continued to fester between Lawson and Thatcher and was exacerbated by the re-employment by Thatcher of Sir Alan Walters as personal economic adviser
HM Revenue and Customs
HMRC was formed by the merger of the Inland Revenue and Her Majestys Customs and Excise which took effect on 18 April 2005. The departments logo is the St Edwards Crown enclosed within a circle, responsibility for the protection of the UKs borders passed to UK Visas and Immigration of the UK Border Agency within the Home Office on 1 April 2008 and to UK Visas and Immigration in 2013. This includes all of the previous HMCE criminal work such as Tobacco Alcohol and they have aligned their previous Customs and Excise powers to tackle previous Inland Revenue criminal offences. They are responsible for seizing billions of pounds of HMGs revenue. Their skills and resources include the range of intrusive and covert surveillance. HMRC inland detection officers have wide-ranging powers of arrest, search, the main power is to detain anyone who has committed, or whom the officer has reasonable grounds to suspect has committed, any offence under the Customs and Excise Acts. HMRC is listed under parts of the British Government which contribute to intelligence collection and their prosecution cases may be coordinated with the Police or the Crown Prosecution Service.
The department is organised around four groups, each led by a director general. The next 8,400 business are dealt with via Customer Co-ordinators who provide a point of contact with HMRC. The merger of the Inland Revenue and HM Customs & Excise was announced by Chancellor of the Exchequer Gordon Brown in the Budget on 17 March 2004, the name for the new department and its first executive chairman, David Varney, were announced on 9 May 2004. The Act creates a Revenue and Customs Prosecutions Office responsible for the prosecution of all Revenue, the old Inland Revenue and Customs & Excise departments had very different historical bases, internal cultures and legal powers. The merger was described by the Financial Times on 9 July 2004, legislation to introduce new information and inspection powers was included in Finance Act 2008. The new consolidated penalty regime was introduced via Finance Act 2007, in addition,2,500 staff would be redeployed to front-line activities. Estimates suggested this may save around £300 million in staff costs, in addition, certain investigatory functions moved to the new Serious Organised Crime Agency, as well as prosecutions moving to the new Revenue and Customs Prosecution Office.
A further programme of job cuts and office closures was announced on 16 November 2006, whilst some of the offices closed will be in bigger cities where other offices already exist, many will be in local, rural areas, where there is no other HMRC presence. In May 2009, staff morale in HMRC was the lowest of 11 government departments surveyed. In 2013, HMRC began to introduce an update to the PAYE system, a trial of the new system began in April 2012, and all employers switched by October 2013. In 2012 Revenue Scotland was formed and on 1 April 2015 it took HMRC responsibility to collect Stamp Duty Land Tax, on 12 November 2015 HMRC proposed to close 137 local offices and replace them with 13 regional centres by 2027
Institute for New Economic Thinking
The Institute for New Economic Thinking is a New York City-based nonprofit think tank. It was founded in October 2009 as a result of the 2007–2012 global financial crisis, INET was founded with an initial pledge of $50 million from George Soros. Reddy, Carmen Reinhart, Hélène Rey, Ken Rogoff, Jeffrey Sachs, John Shattuck, William R. White, the Institute has disbursed approximately $4m annually in research grants. The INET at the Oxford Martin School was co-funded by James Martin, the Cambridge-INET Institute was co-funded with William H. Janeway, and the INET Center on Imperfect Knowledge Economics is located at the University of Copenhagen. History of Economic Thought taskforce, headed by Bruce Caldwell of Duke University, eric Beinhocker, executive director of INET-Oxford, independently authored a book introducing some of the ideas held by some INET-associated economists, The Origin of Wealth. The executive director is Robert Johnson, former managing director at the hedge funds Soros Fund Management, official website YouTube channel - INETeconomics
City of London
The City of London is a city and county within London. It constituted most of London from its settlement by the Romans in the 1st century AD to the Middle Ages, the City is now only a tiny part of the metropolis of London, though it remains a notable part of central London. Administratively, it one of the 33 local authority districts of Greater London, the City of London is not a London borough. The City of London is widely referred to simply as the City and is colloquially known as the Square Mile. Both of these terms are often used as metonyms for the United Kingdoms trading and financial services industries. The name London is now used for a far wider area than just the City. London most often denotes the sprawling London metropolis, or the 32 London boroughs and this wider usage of London is documented as far back as 1888, when the County of London was created. The local authority for the City, namely the City of London Corporation, is unique in the UK and has some unusual responsibilities for a local council and it is unusual in having responsibilities and ownerships beyond its boundaries.
The Corporation is headed by the Lord Mayor of the City of London, the current Lord Mayor, as of November 2016, is Andrew Parmley. The City is a business and financial centre. Throughout the 19th century, the City was the primary business centre. London came top in the Worldwide Centres of Commerce Index, published in 2008, the insurance industry is focused around the eastern side of the City, around Lloyds building. A secondary financial district exists outside of the City, at Canary Wharf,2.5 miles to the east, the City has a resident population of about 7,000 but over 300,000 people commute to and work there, mainly in the financial services sector. It used to be held that Londinium was first established by merchants as a trading port on the tidal Thames in around 47 AD. However, this date is only supposition, many historians now believe London was founded some time before the Roman conquest of Britain in 43 AD. They base this notion on evidence provided by both archaeology and Welsh literary legend, archaeologists have claimed that as much as half of the best British Iron Age art and metalwork discovered in Britain has been found in the London area.
One of the most prominent examples is the famously horned Waterloo Helmet dredged from the Thames in the early 1860s and now exhibited at the British Museum. Also, according to an ancient Welsh legend, a king named Lud son of Heli substantially enlarged and improved a pre-existing settlement at London which afterwards came to be renamed after him, the same tradition relates how this Lud son of Heli was buried at Ludgate
She was the longest-serving British prime minister of the 20th century, and the first woman to have held the office. A Soviet journalist dubbed her The Iron Lady, a nickname that became associated with her uncompromising politics, as Prime Minister, she implemented policies that have come to be known as Thatcherism. A research chemist before becoming a barrister, Thatcher was elected Member of Parliament for Finchley in 1959, Edward Heath appointed her Secretary of State for Education and Science in his 1970 government. In 1975, Thatcher defeated Heath in the Conservative Party leadership election to become Leader of the Opposition and she became Prime Minister after winning the 1979 general election. Her political philosophy and economic policies emphasised deregulation, flexible labour markets, the privatisation of state-owned companies and she narrowly escaped an assassination attempt in 1984. Thatcher was re-elected for a term in 1987. During this period her support for a Community Charge was widely unpopular and she resigned as Prime Minister and party leader in November 1990, after Michael Heseltine launched a challenge to her leadership.
After retiring from the Commons in 1992, she was given a peerage as Baroness Thatcher which entitled her to sit in the House of Lords. After a series of strokes in 2002, she was advised to withdraw from public speaking. Despite this, she managed to pre-record a eulogy to Ronald Reagan prior to his death, in 2013, she died of another stroke in London, at the age of 87. Always a controversial figure, she has described as one of the greatest and most influential politicians in British history. Thatcher was born Margaret Hilda Roberts on 13 October 1925, in Grantham and her father was Alfred Roberts, originally from Northamptonshire, and her mother was Beatrice Ethel from Lincolnshire. She spent her childhood in Grantham, where her father owned two grocery shops, Prior to the Second World War, in 1938 the Roberts family gave sanctuary to a teenage Jewish girl escaping Nazi Germany. Thatcher was to describe this in her memoirs as among the significant events of her formative years, Alfred Roberts was an alderman and a Methodist local preacher, and brought up his daughter as a strict Wesleyan Methodist attending the Finkin Street Methodist Church.
He came from a Liberal family but stood as an Independent and he was Mayor of Grantham in 1945–46 and lost his position as alderman in 1952 after the Labour Party won its first majority on Grantham Council in 1950. Margaret Roberts attended Huntingtower Road Primary School and won a scholarship to Kesteven and her school reports showed hard work and continual improvement, her extracurricular activities included the piano, field hockey, poetry recitals and walking. She was head girl in 1942–43, in her upper sixth year she applied for a scholarship to study chemistry at Somerville College, but she was initially rejected and was offered a place only after another candidate withdrew. Her dissertation was on the structure of the antibiotic gramicidin, even while working on chemistry, she was already thinking towards law and politics