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  Constitutional monarchy.
 : Unwritten; partly statutes, partly common law and practice.
   V XXmonarch (head of state), prime minister (head of government),

  ?  : House of Commons, House of Lords;

Scottish Parliament, Welsh Assembly, and Northern Ireland Assembly.

magistrates' courts, county courts, high courts, appellate courts, House of

Lords, Supreme Court.

    Scotland, Wales, Northern Ireland (municipalities, counties, and
parliamentary constituencies).
?     : Conservative, Labour, Liberal Democrats, UK Independence Party,
British National Party, Green Party; also, in ScotlandXXScottish National Party. WalesXX
Plaid Cymru (Party of Wales). Northern IrelandXXUlster Unionist Party, Social Democratic
and Labour Party, Democratic Unionist Party, Sinn Fein, Alliance Party, Progressive
Unionist Party.

  British subjects and citizens of other Commonwealth countries and the Irish
Republic resident in the U.K., at 18.
R     (Margaret Thatcher and John

  that had been in power first under
Prime Minister Tony Blair and then under his successor, Gordon Brown,
lost its majority in the House of Commons in the May 6, 2010 election

?  —   
X ueen Elizabeth II
?     — )XXDavid Cameron (Conservative


Nick Clegg (Liberal Democrat Party)

     .XXNigel Sheinwald
XMark Lyall Grant

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lThe first country in the world to industrialise in the 18th and 19th centuries.
l The extensive war efforts of both World wars in the 20th Century and the
dismantlement of the British Empire also weakened the UK economy in global
l The 6th largest economy in the world by nominal GDP
l The capital,   , is a major financial centre for international business and
commerce. The British economy is substantially boosted by      
 , worth an estimated       .
l In 1973, the UK acceded to the V
  which is now
known as the V
    after the ratification of the Treaty of Maastricht in
lThe UK entered its worst          .
l . In response to the financial crisis, the British Government implemented a

          that included a    


The UK economy grew by 1.1 per cent in 2 of 2010, the fastest growth in 4
years, accelerating from the 0.3 per cent growth recorded in 1 of 2010 and 0.4
per cent growth in 4 of 2009. The annual rate of growth was 1.6 per cent in 2
—?š2.183 trillion (2009) (nominal;6th)
š2.159 trillion (2009) (PPP; 6th)
—? 1.6% (2009/10)
—?   š32,798 (2009) (nom; 22nd)
š35,286 (2009)(PPP; 19th)
—?  Agriculture (1.2%), Industry (23.8%), Services (75%) (2009   
(CPI)3.2% (March 2010)
     14% with household income below 60% of UK
median income (2006.)
—   34 (2005)
  31.25 million (2009 est.) (17th)
Agriculture: 1.4%; Industry: 18.2%; Services: 80.4% (2006)   7.8%
( 4 2009)
 machine tools, industrial equipment, scientific equipment,
shipbuilding, aircraft, motor vehicles and parts, electronic machinery, computers,
processed metals, chemical products, coal mining, oil production, paper, food
processing, textiles, clothing and other consumer goods.
V š351.3 billion (2009 )
V  manufactured goods, fuels, chemicals; food,
beverages, tobacco
   United States 13.8%, Germany 11.5%,
Netherlands 7.8%, France 7.6%, Ireland 7.5%, Belgium 5.3%,
Spain 4.1% (2008)
 š473.6 billion (2009 .)
  manufactured goods, machinery, fuels;
    Germany 13%, United States 8.7%,
China 7.5%, Netherlands 7.4%, France 6.8%, Norway 6%,
Belgium 4.7%, Italy 4.1% (2008)
 š1.025 trillion (31 December 2009 )
—  š9.088 trillion (30 June 2009) (2nd)
  —  .


Valu %ge
e Rise/
Product bn# fall
Medicines 16.9 16.1
Petrol 12.4 25.6
Cars 11.8 23
Other oils 9.9 22.4
Motors 9.6 22.5
Aerospace 7.6 0.5
Telecoms 5.6 10.6
compounds 5.3 47.4
Instruments 4.8 1.6
Beverages 4.6 6.6

The European Innovation Scoreboard 2008 ranks the UK one of the innovation leaders,
with innovation performance well above that of the EU average and all other countries.
(Source: European Innovation Scoreboard, 2008).
The UK has claim to 23 Nobel prizes in the    . (medicine and chemistry). UK
researchers produce 16 research papers per USš1 million of research funding
(compared with 9.2 papers in the U.S. and 3.6 in Japan). Source: ABPI 2008


Research and development (R&D) tax credits are available for large
corporations and SMEs investing in R&D:
± › 

In addition to the normal 100 per cent deduction, large companies are
entitled to a further deduction from their taxable income of 30 per cent
of their current spending on qualifying R&D. For example, if a company
spends £100,000 on qualifying R&D, it will be able to deduct £100,000
from its taxable income under ordinary tax rules and an additional
£30,000 under the R&D tax credit.

In addition to the normal 100 per cent deduction, SMEs are entitled to a
further deduction from their taxable income of 75 per cent of their
current spending on qualifying R&D (for the purposes of this scheme
only, an SME is defined as a company employing up to 500 people).
— VV —   — VV
Parliament Primary The Scottish Parliament; Local authorities
legislation the Welsh Parliament; the London boroughs
Northern Ireland Assembly

Cabinet office Public service Social Exclusion Task

reform Force
The Treasury Economic policy Her Majesty's Revenue
and Customs (taxation;
tax credits and social
security contributions)

LEGAL Department of Health care National Health Service Community care   
FACTOR Social Services 
Department for National Pensions, Disability and
Work and Pensions Insurance Carers Service (formerly
the Benefits Agency);
Social Assistance Child Support Agency ;

Employment JobCentre Plus (formerly

Benefits Agency/
Employment Service)

Department for Local Planning; housing;

Communities and government; environmental
Local Government Urban policy; health
Ministry of Justice Law and order Probation service; Police
immigration service;
prisons Fire

Department for Education Schools; Education

Children, Schools welfare; Learning
and Families disability (5X18);
children's services
  V? V V—  

     R  This makes it illegal for a business
to provide false or misleading descriptions of their products, services,
accommodation and facilities.
  —  R R This stated that unsolicited goods
become the property of the recipient if the sender does not retrieve
them from the recipient within 30 days of notice.
  R  This states that any business which
offers credit facilities must obtain a licence from the DirectorXGeneral
of Fair Trading  must also display the annual percentage rate
(A.P.R) that will be charged.
  —  R   This states that goods must be of
merchantable quality, as described in their advertisements and fit for
their purpose.
?    R  This states that it is an offence
for a business to give a false or misleading price indication on its
product(s) AND businesses are liable for any damage and injury that
their defective products cause to consumers.
   R  This states that it is an offence for a
business to sell food if it is not registered to do so and also if those
handling the food have not been appropriately trained. It also states
that the food must be of the expected nature and quality that is
demanded by the consumer.
V  ?      
RV     R          
V    R   

?  R           






RV  V VV— 
Protecting the environment is a key focus for the UK Government.

         (compared to
1990 levels)
  recover   of packaging waste 


  in England possibly as a
result of more          being introduced.

Despite increased awareness of environmental

issues, nearly oneXquarter (24 per cent) of adults aged 16 and
over in England in 2007 left their television on standXby
Within the UK, the key environmental regulators are:
í in V

í in ÷  
  the Northern Ireland Environment Agency
í in  
 : the Scottish Environment Protection Agency
V V VV— 
A)The key environmental regulations in the UK cover the
following areas:
a) Air
b) Hazardous substances
c) Land
d) Packaging
e) Waste and recycling
f) Water

B)Environmental permits or licences FOR

a) The discharge of liquid waste to public sewers,
b) The handling or storage of hazardous waste
c) The emission of specific substances.









V       !    




What makes the UK Europe¶s leading investment destination for companies relocating and developing their global
We look at 20 of the top reasons setting the UK apart from other countries.
  The World Bank found that it takes 13 days to set
up a business in UK, compared to the European average of 15 days. It ranks the UK first in Europe and fifth in the
world to operate a business. Source: Doing Business 2010.
2.                 The top corporate rate is 28 per cent,
the lowest in the G7 and below most of the UK¶s core competitors. The UK has reduced its corporate tax rate from
over 50% in the early 1980s, down to one of the lowest in the industrialised world. The UK¶s highest personal tax
band, at 40 per cent, is one of the most competitive in Western Europe. Source: Deloitte, 2009. Ernest & Young/
Forbes, 2009.
3.    V
 The World Bank¶s Doing Business 2010 ranks the UK fifth in
the world on ³Ease of Doing Business´ making the highest ranking country in Europe. Source: World Bank. Doing
Business 2010.
   : The OECD noted that the UK is fifth in the
world for Product Market Regulation, has the least barriers to entrepreneurship in the world and has the third least
barriers to trade and investment in the world. Source: OECD, 2008.
5.       : The European Innovation Scoreboard 2008 ranks the UK one of the innovation
leaders, with innovation performance well above that of the EU average and all other countries. (Source:
European Innovation Scoreboard, 2008).
6. One of the most        to do business ( ?V   
—  According to Transparency International, the UK is one of the most transparent
(least corrupt) countries in the world. It has a higher rating than France, Belgium, USA
and Japan.
    : The UK has a consultative approach to the
formulation of regulation, so there are no surprises for business.
8. One of the easiest countries to     : To register a property, the UK is
ranked above USA, Japan, France, Germany, Italy and Canada. Source: World Bank.
Doing Business 2010
9. Speaking in      
 : operating in English gives
firms in the UK a natural advantage when communicating globally.
10. Progressive 
   : The UK has the most extensive broadband
market among the G8 countries and one of the strongest ICT infrastructures in the
world. (Source: OECD Broadband Portal).
11. Home to Europe¶s 
  for the 20th year running in 2009
by the European Cities Monitor: London is the world's leading financial services centre
on a number of key performance indicators and was voted top in Europe.
12.   : According to the Times Higher Education Supplement (THES), the UK
has the top five universities in Europe and two of the top four globally. (Source: The
Times Higher Education Supplement, 2009)
13.    V
 : The UK is the number one gateway to Europe, giving easy
access to the 27 member states of the European Union, the world's largest single
market, with its population of nearly 500 million.
14. The UK has claim to 23 Nobel prizes in the    . (medicine and chemistry).
UK researchers produce 16 research papers per USš1 million of research funding
(compared with 9.2 papers in the U.S. and 3.6 in Japan). Source: ABPI 2008
15. Number one location for V
: More overseas companies set up
their European headquarters in the UK than anywhere else. (Source: European
Investment Monitor)
  : London will host the Olympic Games in 2012. Procurement
started in 2007. Contracts are available for firms of all sizes and the total budget will run
into billions.
17. Outstanding    : The UK offers world class transport links. Heathrow's
new Terminal 5 is now open and working efficiently. Additional expansion is planned for
international airports at Stansted and London City; for sea container terminals at London
Gateway and Felixstowe; and for the rail network, with investment in London Cross Rail
and rail freight infrastructure.
18. High 
    : UK residents enjoy a high standard of living, education and
recreation. Personal taxes are low, publiclyXfunded health is free to all and there is a rich
cultural heritage and abundance of leisure facilities.
19. Magnet for    : In 2009, the UK attracted 432 new investments and
expansion of existing investments, the highest in Europe. (Source: European Investment
Monitor, December 2009)
20. ? 
   rapidly increasing: Historically, the UK had lower productivity than its
main competitors, but this is changing and the UK has closed the gap with many
countries and overtaken others