British Industry and Economy Profile

The United Kingdom of Great Britain and Northern Ireland is the official name of the state situated on the British Islands. The British Isles enjoy a mixture of disparate cultures and life styles. Therefore, British society as a whole does not have a uniform cultural identity.

The United Kingdom has a fiercely independent, developed, and international trading economy. As in all European countries, its economic system is a mixture of private and public enterprises. The public sector includes the nationalized industries and public services provided by local and central government and employs about one-third of the national workforce. Hence, two-thirds of the economy is in the private sector.

The public sector consists of small private businesses which are owned by individuals; ‘public’ companies whose shares are sold to the general public through the Stock Exchange; and larger private companies whose shares are not offered for sale to the public. Private companies are important to the national economy because they generate 50% of the workforce. Some 10% of the economy is controlled by foreign private corporations, which employ 10% of the workforce.

British industries can be divided into three main groups:

a. Primary industries providing raw materials and food from the land and the sea (energy resources, agriculture) – 13%.

b. Manufacturing industries making finished goods from raw materials (electronics, aerospace, chemical) – 22%.

c. Service industries (banking, business, computing, tourism) – 65%.

Among the main trends of Britain’s economy have been:

a. The decline in the heavy industry.

b. The growth of the offshore oil and gas industry.

c. The rapid development of the electronic industry.

d. The continual rise in the service industries.

To make the British economy more efficient the government tries to stimulate innovation in industry; to encourage competition; to reduce taxes; to promote exports and to work for worldwide free trade.

It should be mentioned that the British industry raises nearly £120 000 million each year. Heavy industries include coal mining, engineering, manufacturing of cars, ships and aircraft, and steel and chemical production. Light industries include the manufacture of small electronic and household goods.

Britain has the largest energy resources in Europe and is a major world producer of oil, natural gas and coal. By successfully exploiting oil and gas from the North Sea Britain has become self-sufficient in energy. About 80% of offshore production of oil and gas is brought ashore by submarine pipeline. To the most perspective energy technologies belongs wind, tidal and solar power.

The United Kingdom has relatively limited supplies of economically valuable mineral resources: iron ore, tin, which supplies about half the domestic demand, and zinc. There are adequate supplies of nonmetallic minerals, including sand and gravel, limestone, dolomite, chalk, slate, clay and clay shale, kaolin (china clay), gypsum, etc. Sand, gravel, limestone, and other crushed rocks are quarried for use in construction.

The United Kingdom is unusual, even among western European countries, in the small proportion of its employed population (about 2 percent) engaged in agriculture. The most important farm crops are wheat, barley, oats, sugar beets, potatoes, and rapeseed. The main livestock products derive from cattle and calves, sheep and lambs, pigs, and poultry. Furthermore, the United Kingdom’s fishing industry now supplies only half the country’s total demand. The most important fish landed are cod, haddock, as well as lobsters, crabs, and oysters. Estuarine fish farming—mainly of trout and salmon—has expanded considerably.

In total the UK is a place that exerts a strong pull on a foreigner’s attitude to this country.

 

Read the text once more and try to fill the gaps from memory.

1. By exploiting oil and gas Britain has become … in energy.

2. For some people the country has been “the … of the world”.

3. Energy resources and agriculture are the branches of … industries.

4. Tin supplies about half the ….

5. Trout and salmon farming has … considerably.

6. British industry … nearly £120 000 million each year.

7. To be economically efficient, Britain tries to stimulate … in industry and to promote exports.

8. The main … derive from cattle and calves, poultry and the like.

9. The growth of the … and … industry has been the main trend of Britain’s economy.

10. Foreign private corporations … 10% of the workforce.

Answer the following questions using the information from the text. Use some additional material if necessary.

1. What has the UK been to different people?

2. What do the British Isles enjoy?

3. How can you characterize the UK’s economic system?

4. What does the public sector consist of?

5. Why are the private companies so important to the national economy?

6. What industries are there in the UK?

7. What are the main trends of Britain’s economy?

8. What measures does the UK take to improve its economy?

9. How can you characterize the two main kinds of British industry?

10. What are the most perspective energy technologies in Britain?

11. What mineral recourses is Britain rich in?

12. What are the main features of British agriculture?

 

Speak about Great Britain’s economy and industry (150-200 words). The above-mentioned questions and additional materials may help you.

 

Additional material

Economic Structure of Great Britain

As in all European countries, the economic system in Britain is a mixture of private and public enterprises. From 1945 until 1980 the general trend was for the state to have more and more control. Various industries were nationalized, especially those connected with the production and distribution of energy. So were the various forms of transport and communication services (as well, of course, as the provision of the education, social welfare and health welfare).

From 1980 the trend started going in the other direction. The government of the 1980s pursues the ‘let market force rule’ policy (which meant restricting the freedom of business as little as possible). State-owned companies were turned into companies owned by individuals (who became shareholders). Since 1980 a large number of companies have been privatized such as British Airways, British Gas, British Petroleum, British Steel and British Telecom and the water and electricity supplies. The government privatization programme has had a major effect on share ownership. In 1992 over one-fifth of the adult population in Great Britain owned shares, compared with one in thirteen in 1979.

Now the public sector (which includes the nationalized industries and public services provided by local and central government) amounts to one-third of the total goods and services in the economy, and employs about one-third of the national workforce. Two-thirds of the economy is in the private sector, although this will increase as more privatization is implemented.

The public sector consists of small private businesses which are owned by individuals; ‘public’ companies whose shares are sold to the general public through the Stock Exchange; and larger private companies whose shares are not offered for sale to the public. The majorities of companies in Britain are private and most are small or medium-size. They are important to the national economy because they generate 50 per cent of the workforce. Some 10 per cent of the economy is controlled by foreign private corporations, which employ 10 per cent of the workforce.

Two parallel developments have affected Britain slightly more than most other European countries. One is the increase in the service industries, as distinct from manufacturing ones. The other is the increase in the proportion of people in white collars as distinct from manual jobs.

There has been some growth in the number of people who work for schools and hospitals, social services, the police, and in public administration. But the bigger growth has been in finance, banking and insurance, along with other services, including the law, advertising, catering and entertainment.

Another recent change has been in the growth of self-employment, the number of people working for themselves has increased. Small businesses employ more than a third of the private sector workforce and are responsible for one-sixth of total turnover. The government provides financial assistance and guidance to help with problems facing small companies.

 

 

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