Economy of England
The economy of England is the largest economy of the four countries of the United Kingdom. England's economy is one of the largest and most dynamic in the world, with an average GDP per capita of £37,852 in 2022.[1]
Currency
57,106,398 (2022)[1]
£2.162 trillion (2022)[1]
£37,852 (2022)[1]
- 27.0% Professional
- 15.1% Associate professional
- 11.2% Managers, directors and senior officials
- 9.5% Administrative and secretarial
- 9.1% Elementary occupations
- 8.6% Skilled trades
- 7.8% Caring, leisure and other service
- 6.1% Sales and customer service
- 5.3% Process plant and machine operatives
- (Jan–Dec 2023)[c][2]
- £92.8bn Machinery and transport
- £40.2bn Chemicals
- £31.8bn Miscellaneous manufactures
- £28.6bn Manufactured goods
- £14.2bn Mineral fuels
- £8.6bn Food and live animals
- £7.4bn Crude materials
- £2.3bn Beverages and tobacco
- £0.4bn Animal and vegetable oils
- £0.0bn Other commodities
- £226.4bn Total
- (2021)[g][4]
- £110.5bn European Union
- £42.2bn Asia & Oceania
- £39.1bn North America
- £11.9bn Middle East and North Africa (excl. EU)
- £10.3bn Western Europe (excl. EU)
- £5.0bn Eastern Europe (excl. EU)
- £3.9bn Sub-Saharan Africa
- £3.2bn Latin America and Caribbean
- £0.2bn Undefined country group
- £226.4bn Total
- (2021)[g][4]
- £124.5bn Machinery and transport
- £56.9bn Miscellaneous manufactures
- £51.0bn Manufactured goods
- £42.6bn Chemicals
- £35.6bn Mineral fuels
- £29.9bn Food and live animals
- £12.0bn Crude materials
- £5.5bn Beverages and tobacco
- £1.3bn Animal and vegetable oils
- £0.1bn Other commodities
- £359.4bn Total
- (2021)[g][4]
His Majesty's Treasury, led by the Chancellor of the Exchequer, is responsible for developing and executing the government's public finance policy and economic policy. Government involvement is also primarily exercised by the Department for Business and Trade and Department for Science, Innovation and Technology. Regarded as a highly developed social market economy, it has adopted many free market principles, yet maintains an advanced social welfare infrastructure.[5]
England is a highly industrialised country. It is a leader in the high-tech, chemical and pharmaceutical sectors and in key technical industries, particularly aerospace, the arms industry, and the manufacturing side of the software industry.[6] It is also an important producer of textiles and chemical products. Although automobiles, locomotives, and aircraft are among England's other important industrial products, a significant proportion of the country's income comes from the City of London and its financial hubs, banking, insurance, investment management and other related financial services. The UK technology sector is valued at US$1 trillion, third behind the United States and China, mostly based in England.[7][8]
The service sector of the economy is largest in England and one the largest in Europe. Construction industry, technology, and business services continue to produce economic growth, provided mainly by the growing services, administrative and financial sectors. Creative industries (arts, film production, product, fashion, design, music, IT, etc.) remain important to the national economy, with England having the second largest creative industry sector in Europe.[9][10]
In the 18th century, England was the first nation to industrialise.[11] In common with most other advanced industrialised economies, England has seen a decline in the importance of both manufacturing industries and primary-based extractive industries. Since the 1990s, the financial services sector has played an increasingly significant role in the English economy and the City of London is one of the world's largest financial centres. Banks, insurance companies, commodity and futures exchanges are heavily concentrated in the city.
The London Stock Exchange, the United Kingdom's main stock exchange and the largest in Europe, is England's financial centre, with 100 of Europe's 500 largest corporations being based there.[12] The official currency in England is the pound sterling, whose ISO 4217 code is GBP. The "pound sterling" is the oldest currency in continuous use. Taxation in England is quite competitive when compared to much of the rest of Europe – as of 2014 the basic rate of personal tax is 20% on taxable income up to £31,865 above the personal tax-free allowance (normally £10,000), and 40% on any additional earnings above that amount.[13]
England is a nation within the United Kingdom, which is a member of the Commonwealth of Nations, the G7, the G8, the G20, the CPTPP, the International Monetary Fund, the Organisation for Economic Co-operation and Development, the World Bank, the World Trade Organization, Asian Infrastructure Investment Bank and the United Nations.
Regions and cities
Manchester is considered to be a 'beta global city', rated as the second most globally influential city in England after London. The region is now an economic knowledge-led centre, with research and enterprise clustered around the University of Manchester,[209] where research ranked as the third most powerful in the UK behind Cambridge and Oxford.[210] Typical industry areas include digital and creative, financial, legal and business services, biotechnology, advanced manufacturing, environmental technologies, tourism, global sports brands, media and real estate. The city is also a key location for many foreign owned companies and headquarters, and almost half of the Northwest's top 500 businesses.[211] Along with London, Manchester featured in the top 30 cities in the world for investment,[212] and of the top 30, Manchester was 12th for the highest proportion of urban economy derived from financial and business services.[213] Manchester City Council also plays a uniquely active role in business, where it owns key infrastructures such as bus services.[214]
The economy in Liverpool is dominated by service sector industries, both public and private. In 2007, over 60% of all employment in the city was in the public administration, education, health, banking, finance and insurance sectors.[215] Public administration, education and health are combined, the single largest employment sector within Liverpool's economy, accounting for approximately 40% of all jobs in the city.[216] The level of employment in these sectors remains higher than the average for the other core cities of England.[216] The banking, finance and insurance sectors are one of the fastest growing areas of Liverpool's economy with a 5.3% increase in jobs in these areas 2006/07.[217] Major private sector service industry concerns have also invested in Liverpool especially the financial services sector with Barclays, JPMorgan, Alliance & Leicester, Royal Bank of Scotland Group and the Bank of Ireland either opening or expanding their sites, a number of major call centres have opened in recent years too and the professional advice sector.
Birmingham is an important manufacturing and engineering centre, employing over 100,000 people in the industry and contributing billions of pounds to England's economy. Research at the University of Birmingham, both theoretical and practical has contributed to the success of the city and the West Midlands region and had worldwide impact for more than a century. The university ranks as high as 10th in the UK according to the QS World University Rankings.[218] Scientific research including research into nano technology at the University of Birmingham, is expanding in the city and will possibly play a part in the city's economic future.[219] In 2011, Birmingham's financial and insurance services industry was worth £2.46 billion, the 4th largest in the United Kingdom.[220] Birmingham has the two largest sets of barrister's chambers in the country; a local law society; 50 major property firms and one of Europe's largest insurance markets.[221]
Leeds is the most diverse economy of all of England's main employment centres and has seen the fastest rate of private-sector jobs growth of any UK city and has the highest ratio of public to private sector jobs of all the core cities of England. Leeds has the third-largest jobs total by local authority area with 480,000 in employment and self-employment at the beginning of 2015.[222] Leeds is the largest legal and financial centre in England outside of London.[222] Its financial and insurance services industry was worth £2.1 billion,[222][223] with more than 30 national and international banks located in the city. Leeds has nearly 1,800 companies engaged in a diverse range of manufacturing activities, including specialised engineering, print, food and drink manufacture, chemicals and medical technology.[224] Both the University of Leeds and Leeds Metropolitan University have established business schools, their presence being supported by businesses in the city.[225]
The economy in Bristol has long connections with the sea and its ports. In the 20th century aeronautics played an important role in the economy, and the city still plays a role in the manufacture of aircraft. Bristol was the first UK city to be named European Green Capital. Its modern economy is built on the creative media, technology, electronics and aerospace industries. Bristol is also a tourist destination, and has significant media, information technology and financial services sectors.[226] Reports released in 2018 showed that the city is growing exponentially with a projected 2.3 percent annual growth rate.[227]
In 2008, Sheffield ranked among the top 10 cities in the UK as a business location,[228] and aims to regenerate itself as a modern technology and sports based city. Sheffield was the first National City of Sport, with a range of high quality facilities.[229] Sheffield has an international reputation for metallurgy and steel-making. It was this industry that established it as one of England's main industrial cities during the 18th, 19th and 20th centuries. High technology businesses such Fluent, Inc. have chosen Sheffield as the centre for their international operations and so has Jennic, specialists in semiconductor design for the home automation, commercial building automation, and industrial process monitoring and control markets. The University of Sheffield supports the growth of technology transfer in the Sheffield City Region through the innovation centers which houses enterprises as well as startup companys working in similar areas alongside the University of Sheffield. Organised by the Sheffield Chamber of Commerce and Industry, the Sheffield Business Awards is an awards ceremony held on an annual basis to help highlight and promote business and industry in Sheffield and boost the economy of the region.
Newcastle played a major role during the 19th-century Industrial Revolution, and was a leading centre for coal mining, shipbuilding, engineering, munitions and manufacturing. Heavy industries in Newcastle declined in the second half of the 20th century; with office, service and retail employment now becoming the city's staples. Newcastle is the commercial, educational and the cultural hub of North East England. Newcastle's economy contributes around £13 billion to the UK GVA.[230] This figure is mostly produced by corporate activity in Newcastle's Central Business District, located in the centre of the city (bounded by the Haymarket, Central Station and the Quayside areas). The city's thriving nightlife is estimated to be worth £340 million per year, and consequently is seen as a major contributor to Newcastle's economy.[231] The UK's first biotechnology village, the Centre for Life, is located by Central Station. The village is the first step in the City Council's plans to transform Newcastle into a science city.[232]