ECONOMIC POLICIES
Economic policies generally refer to policies that affect economic growth, inflation, unemployment and fair distribution of income. The UK government expenditure is an estimated 400 billion pounds a year, funded primarily through taxation. A third of this money goes to welfare benefits such as pensions, unemployment benefits and other forms of income support, while the rest is spent on health, education, defence, roads, law and order and on supporting businesses and local communities. In supporting the latter, governments typically offer grants, subsidies, tax breaks and even advice.
Economic policies do not simply affect businesses. They have an impact on the population, as it affects unemployment rates, people's disposable income, their confidence in the future outlook of the economy, and hence, their propensity to spend. At times, confidence can also be affected by increased international risks, such as geo political unrest in the Middle East and uncertainty of governments, such as due to an upcoming election.
Based on March 2015 report provided by the Office for National Statistics in the UK, unemployment fall to 5.7% in the 3 months to Dec 2014 (down from 7.2% in 2013), while household income grew 1.9%. Since early 2013, the UK economy has been recovering at a relatively strong rate, and is expected to average around 2.5% in 2015, before easing slightly to around 2.3% in 2016. While employment rates seem to be recovering, productivity seems subdued, and this is critical for wages to remain or improve.
Economic policies do not simply affect businesses. They have an impact on the population, as it affects unemployment rates, people's disposable income, their confidence in the future outlook of the economy, and hence, their propensity to spend. At times, confidence can also be affected by increased international risks, such as geo political unrest in the Middle East and uncertainty of governments, such as due to an upcoming election.
Based on March 2015 report provided by the Office for National Statistics in the UK, unemployment fall to 5.7% in the 3 months to Dec 2014 (down from 7.2% in 2013), while household income grew 1.9%. Since early 2013, the UK economy has been recovering at a relatively strong rate, and is expected to average around 2.5% in 2015, before easing slightly to around 2.3% in 2016. While employment rates seem to be recovering, productivity seems subdued, and this is critical for wages to remain or improve.
EXAMPLES OF ECONOMIC POLICIES IMPLEMENTED BY THE UK
In 2011, the government announced a set of reforms designed to remove barriers to growth to achieve the following :
1. Create the most competitive tax system in the G20
2. Encourage growth of business, by makinge the UK the best place in Europe to start, finance and grow a business
3. Encourage investment and exports as a route to a more balanced economy
4. Improve employment rates and productivity by creating a more educated workforce that is the most flexible in Europe
Some of the actions taken are as follows.
1. Create the most competitive tax system in the G20
2. Encourage growth of business, by makinge the UK the best place in Europe to start, finance and grow a business
3. Encourage investment and exports as a route to a more balanced economy
4. Improve employment rates and productivity by creating a more educated workforce that is the most flexible in Europe
Some of the actions taken are as follows.
(i) Investing in infrastructure
The UK government made a commitment of over 100 billion pounds towards infrastructure investment, in key sectors such as transport, energy, communications, water, waste and science. Such actions will lead to improved infrastructure for citizens, multinational businesses to pump further investments into the UK, and job creation, just to name a few benefits.
(ii) Enhancing school curriculum
Education system required a reform, to address school leavers' level of literacy and numeracy, and readiness for the job market. Funding was therefore set aside for up to 180 new free schools, 20 new studio schools and 20 university technical colleges a year. Curriculum is revised to make education more relevant and address skills gaps that are required by the industry, such as by making the GCSEs and A levels more rigorous. Recommendations were also made to introduce a curriculum that gives schools and teachers flexibility to teach in the way they know works best and to ensure that all pupils acquire a core of essential basics in English, Mathematics and Sciences. Early childhood reading habits are to be introduced as well.
(III) SUPPORTING LOCAL GROWTH
The government set aside 2.85 billion pounds to help local businesses grow, while concurrently creating new jobs . Funding through the private sector is also in place, and such investments is expected to grow to 20 billion in the years to 2021. Businesses are also given greater access to financial assistance by offering incentives to banks to boost lending. Working with over 80 partners, it uses funds to unlock finance for thousands of small businesses in the UK.
Through the UK Trade and Investment, expert international trade advice and practical support is provided to UK-based companies who want to grow their businesses overseas. This will in turn generate economic growth in the UK.
Through the UK Trade and Investment, expert international trade advice and practical support is provided to UK-based companies who want to grow their businesses overseas. This will in turn generate economic growth in the UK.
IMpact of economic policies on birth rates in the UK
Similar to healthcare policies, economic policies alone may not necessarily impact birth rates, as other factors come into play as well.
In the more economically developed countries, such as the UK, the population are generally more educated, including women, and people are more concerned about financial well-being and standard of living. Children can therefore be perceived as a financial burden, as the cost of child dependency is a major factor in the decision to begin or extend a family. Tuition fees, and other costs associated with raising a child can deter people from having more children. To supplement family incomes, more women are entering the workforce. To juggle work and children can be physically and mentally demanding. In addition, social pressures can also give rise to the full-time housewife stigma, where women feel less confident compared to their peers who have successful careers.
The economic policies introduced by the UK government are focused on job creation, increasing productivity, and attracting investments into the UK, and helping businesses internationalise outside of the UK market. If this is sustainable, it will give people more confidence to have more children.
In the more economically developed countries, such as the UK, the population are generally more educated, including women, and people are more concerned about financial well-being and standard of living. Children can therefore be perceived as a financial burden, as the cost of child dependency is a major factor in the decision to begin or extend a family. Tuition fees, and other costs associated with raising a child can deter people from having more children. To supplement family incomes, more women are entering the workforce. To juggle work and children can be physically and mentally demanding. In addition, social pressures can also give rise to the full-time housewife stigma, where women feel less confident compared to their peers who have successful careers.
The economic policies introduced by the UK government are focused on job creation, increasing productivity, and attracting investments into the UK, and helping businesses internationalise outside of the UK market. If this is sustainable, it will give people more confidence to have more children.