Overall Score: 75.8 World Ranking: 13
In April this year, the Competition and Markets Authority (CMA) became fully operational in its role as the UK’s lead competition and consumer authority. The new body was the result of a merger between some functions of the Office of Fair Trading (OFT) and the Competition Commission (CC), as set out in the Enterprise and Regulatory Reform Act of 2013. The Competition Act 1998 and the Enterprise Act 2002 are the most important statutes for cases with a purely national dimension.
The Financial Services Act 2012 established an independent Financial Policy Committee (FPC), a new prudential regulator as a subsidiary of the Bank, and created new responsibilities for the supervision of financial market infrastructure. The labor market is relatively efficient, and non-salary costs are moderate. Inflation has fallen rapidly, reflecting the end of administered price increases, and the government has pledged to end subsidies for onshore wind farms.
Low Tax Rates
The top individual income tax rate is now 45 percent, and the top corporate tax rate is now 21 percent. Other taxes include a value-added tax and an environment tax. The overall tax burden equals 35.2 percent of the domestic economy. Public expenditures amount to 48.2 percent of domestic output, and government debt equals 90 percent of gross domestic product.
United Kingdom Economic Growth Forecast Raised By IMF
The International Monetary Fund (IMF) has sharply increased its growth forecast for the UK economy. It now expects the economy to grow 2.4% this year - faster than any other major European economy - against its previous forecast of 1.9%. In 2015, it expects growth of 2.2%. The Treasury said the new UK forecast was further evidence that the government's economic plan was working. The IMF also raised its global growth outlook slightly to 3.7%.