Economy
Currency
Monetary unit: 1 pound sterling = 100 pence
Symbols: GBP or £
Exchange Rate: 1 GBP = 1.97 USD (Average of January 2008)
The UK is a member of the EU, but it has chosen to remain outside the Economic and Monetary Union.
Economic Data
| Year | Unemployment Rate | Annual Inflation Rate* | GDP (million) |
|---|---|---|---|
| 2001 | 5.3% | 1.2% | $2,056,759 |
| 2002 | 5.1% | 1.3% | $2,164,376 |
| 2003 | 5.2% | 1.4% | $2,292,402 |
| 2004 | 4.9% | 1.3% | $2,427,807 |
| 2005 | 4.7% | 2.1% | $2,529,651 |
| 2006 | 4.9% | 2.3% | $2,664,225 |
*Consumer Prices Index (CPI), percentage change over 12 months
Sources: Office of National Statistics, HM Treasury
U.S. Exports to and Imports from the UK
The UK is the world's fifth largest economy and the fifth largest export market for the U.S.
| Year | Exports to UK (million) | Imports from UK (million) |
|---|---|---|
| 2001 | $40,714 | $41,368 |
| 2002 | $33,204 | $40,744 |
| 2003 |
$33,827 |
$42,795 |
| 2004 | $36,000 | $46,273 |
| 2005 | $38,587 | $51,032 |
| 2006 | $45,393 | $53,437 |
Source: U.S. Census Bureau
All Export Commodities: FAS Value by FAS Value For United Kingdom
Note: all figures in millions of U.S. Dollars
| HTS Number | Exports | Change 05-06 |
|---|---|---|
| 7108 - Gold, unwrought, semi-manufactured or powder forms | $2,823 | 200.9% |
|
8411 - Turbojets, turbopropellers, gas turbines and parts |
$2,764 | 4.6% |
| 3004 - Medicants (except vaccines etc., bandages or pharmaceuticals) | $2,742 | 27% |
| 8803 - Parts of balloons, dirigibles, gliders, airplanes, other aircraft, spacecraft and spacecraft launch vehicles | $1,924 | 11% |
| 8471 - Automatic data processing machines and units; magnetic or optical readers, machines for transcribing and processing coded data | $1,393 | 1.7% |
| 9880 - Estimate of non-canadian low value export shipments; compiled low value shipments to Canada; and shipments not identified by kind to Canada | $1,260 | 22.3% |
| 8473 - Parts and accessories nesoi suitable for use solely or principally with the machines of headings 8469 to 8472 | $1,205 | -5.4% |
| 8703 - Motor cars and other vehicles designed to transport people (other than public transport type) | $1,058 | 20.7% |
| 9701 - Paintings, drawings and pastels, executed by hand as works of art; collages and similar decorative plaques | $951 | 5.5% |
| 8802 - Aircraft, powered (e.g. helicopters, airplanes); spacecraft (including satellites) and spacecraft launch vehicles | $829 | -23.7% |
*Information for the calendar year 2006.
Source: United States International Trade Commission
British Business Practices
Business Hours
Normal working hours are from 9.00am to 5.00pm.
Retail opening hours are unrestricted Monday through Sunday,
except for large stores (over 280 sq meters), which can only open
for six continuous hours on Sunday and must stay closed on
Easter Sunday.
Labour
By EU standards, the UK operates a highly liberal labour market with relatively little legislative intervention and administrative 'red tape'.
About 32 percent of full time British employees belong to a union, a low proportion by UK historical standards, but still quite high to an employer used to a much lower American percentage.
As of October 2006, the minimum wage is £5.35 ($10.97) for adults (22+) and £4.45 ($9.12) for young people (18-21) and £3.30 ($6.77) for workers aged 16 and 17.
The European Working Time Directive creates an average work-week limit of 48 hours and a minimum of 20 working days annual paid holiday. However, the UK Government has negotiated a special provision under the directive that allows employees to opt out of the work week limitations. An EU proposal close to adoption would gradually add the UK's eight national bank holidays to the 20 days, making 28 days paid leave, by October 2008.
As part of the Work and Families Act 2006, Statutory Maternity Pay (SMP) has been extended from 26 weeks to 39 weeks.
From October 2006 the Employment Equality (Age) Regulations made it unlawful to discriminate because of age. The regulations cover recruitment, terms and conditions, promotions, transfers, dismissals and training. This was in addition to existing anti-discrimination legislation covering race, gender etc.
Tax
Value Added Tax (VAT)
Currently there are three rates of VAT:
- Standard rate of 17.5%
- Reduced rate of 5% for a few products and services such as domestic fuel and children's car seats
- Zero rate on some products and services such as young children's clothing, books and newspapers
You must register your business for VAT if you supplied taxable goods and services amounting to more than £64,000 in the last 12-month period, or if you anticipate supplying taxable goods and services amounting to more than £64,000 in the next 30-day period alone.
For further details and to register for VAT, please visit the HM Revenue & Customs website.