how much money has been spent on furlough schemes
Over £70 bn is being spent on support for jobs. This may mean the economy may experience a period of austerity as a result.
current unemployment levels in the UK
- 8%
0. 9% higher than before the pandemic
What is the base rate on the uk
The Bank of England base rate is currently 1%
Many commercial banks offer the same interest rate
define base rate
A base rate is the interest rate that a central bank – such as the Bank of England or Federal Reserve – will charge commercial banks for loans
Whats the debt of UK in as a percentage of GDP
94%
the highest it has been since the 1940s
What is inflation in the uk
Inflation in the uk is 9%
highest since the 1990s
what is a current account
records the value of exports and imports
What is the current account position of the UK
There is current account deficit which is £24 billion in Q1 2021
https://commonslibrary.parliament.uk/research-briefings/sn02815/
Why is a current account deficit common in the Uk
The UK has a high marginal propensity to import. Firms may choose to import goods is to try and cut costs. High taxes, wage minimums, and material costs in certain countries make it more useful to import products from a country where fees, wages, and material costs are considerably lower.
growth rate
7.4 %
what industry occupies the highest percentage of UK GDP
79% SERVICES
14% manufacturing
6% construction
1% agriculture.
unemployment in the UK
3.8%
voluntary unemployment rate
21.4% this is higher than pre covid levels
wage inflation in the UK
5.4%
what’s the national min wage in the UK
£9.50 for 23 year olds and over
how much has been invested on the NHS
autumn spending review
- £2.3 billion on improving diagnostic capacity in the NHS
with increased spending on the diagnostic capacity patients can make appointments sooner and as a result they can be diagnosed quicker. this may mean the correct medicine and treatment can be assigned and the health of the workforce may improve as a result
how much has been invested on Education in the UK
autumn spending review
- £4.7 billion has been spent on lost learning as a result of the pandemic and schemes such as the multiply programme aimed to improve numeracy skills in adults
improve the quantity and quality of the workforce giving them increased transferable skills which may be especially important in an industry such as engineering
how much has been invested on vocational training (apprenticeships) in the UK
(autumn spending review)
- 2.7 billion
improve the quantity and quality of the workforce giving them increased transferable skills which may be especially important in an industry such as engineering
how many new homes are being built
autumn spending review
180,000 affordable homes are being built
this increases the supply of homes which may result in the cost of homes to fall and residents can spend a lower proportion of their income on mortgage repayments and increase spending on non material and material well being.
this may also reduce geographical immobility and structural unemployment may fall as a result
give an example when income taxes were lowered in the UK
Margret thatched lowered income taxes in 1978 in order to increase the incentive to work
examples of contractionary fiscal policy implemented in the UK
- national insurance (tax on having a job) is increasing by 1.25%
- corporation tax is increasing from 19% to 25%
- income tax is frozen to benefit from fiscal drag
how much will the government earn by freezing the tax bands
8 billion pound increase in tax revenue if tax brackets remain fixed
what’s the interest rate in swizerland
its -0.75%
savers in SWITZERLAND may choose to save in a UK bank such as Barclays over Julius Baer as they can get a higher rate of return on savings.
what’s the interest rate in turkey
14%
- savers who are not inert may be encouraged to save with a Turkish bank such a Isbank as they may be able to get a better return on their savings
- in doing so they have to buy dollars as pounds have little value in the US and sell their poundds
- this results in an increase in supply and a depreciation of the exchange rate
