Tag Archive for Taxation in the United Kingdom

The Fall and Rise of the British Economy

Chart 1: demonstrates the decline in manufacturing as a share of economic output (GDP) from 1970 to 2000 using official data and then forecasts from 2009 to 2020.UK National Output 1970-2000

This chart demonstrates the changes in the British Economy as it has moved away from an economy of ‘making things’ to becoming an economic culture based upon provision of services, notably financial services.

There was a time when millions of workers streamed into factory gates within the length and breadth of the United Kingdom every day, every morning and home again later in the day. Our manufacturers made products surplus to home nation demand and the nation became a leading exporter of manufactured goods to the rest of the world.

Most people expected to have a job for life in their local community’s dominant industry, just like their parents and grandparents.

Chart 2: using official data shows a similar pattern for employment from 1980 to 2009.

UK employment from 1980 to 2009.

As employment in manufacturing declined the employment of Britons in The Public Sector ballooned and there was a steady increase in employment within the  Financial and others Service Sector.