Britain

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Main Buckingham Palace Gate and Royal Coat of Arms

Apart from being the birthplace of Shakespeare, Harry Potter, soccer, golf and tennis, the United Kingdom (UK) is also Europe’s premier investment location and one of the world’s leading trading nations.

Economic and trade overview

The UK is the fourth-largest economy in the world with a GDP of $1.782 trillion, and accounts for almost 7% of the world’s trade in services and 5.5% of global trade in goods. Inflation within the UK is below the Organisation for Economic Co-operation and Development (OECD) and EU average, and is expected to remain low.

The UK is the world’s fifth-largest exporter of goods and the second-largest exporter of services. It is the largest exporter from the EU, the world’s third largest exporter of hi-tech equipment, and the second largest global recipient of overseas direct investment behind the US. The UK and US are the world’s two largest outward investors and are the largest investors in each other’s economies.

Tax and regulation

Canary Wharf

The UK’s business environment gives every incentive for companies to grow, innovate and compete in a global marketplace. The UK’s taxation rates, general business charges and social security payments for employers are among the lowest in Europe. The UK also benefits from having the cheapest utilities costs in the EU, and its telecoms industry is one of the most advanced in the world.

The regulatory environment is designed to encourage growth and profits. According to The Transatlantic Business Survey 2005, conducted by BritishAmerican Business Inc (BABi) and UK Trade & Investment, nearly 80% of respondents based in the US believe the UK has a compatible business environment with fewer regulations and restrictions than other EU countries.

Employment and education

The UK has a population of nearly 60 million, with an unemployment rate of only 4.7%. Labour market regulations in the UK, including working hours, are the most flexible in Europe, and staffing costs are highly competitive. The Transatlantic Business Survey 2005 also shows that 89% of respondents rated UK skills levels as either good or very good. The UK has a high standard of education with a strong emphasis on vocational education and training. In particular, the country has a strong science and technology base, with worldclass design and R&D disciplines.

Doing business in the UK

When establishing a business in the UK, the first major decision to take is what corporate structure to choose. There are four options:

• Shipping from the US direct to customers;
• Sales to the UK via a distributor or wholesaler;
• Establishing a branch;
• Forming an incorporated subsidiary in the UK.

It is advisable to seek professional advice about company formation in the UK. A range of initiatives and grants for companies, including assistance to companies within the area of research and development (R&D), are available. Small to medium-sized enterprises (SMEs) may be able to claim payable tax credits in cash from the Inland Revenue in certain circumstances.

London

The Big Ben

London is the headquarters of the UK’s banking, corporate finance and private equity sectors. It will also be home to the Olympic Games in 2012. Voted Europe’s best city for business for 16 consecutive years, the capital offers unrivalled opportunities. According to a report published by the Corporation of London in November 2005, London extended its lead as Europe’s pre-eminent financial centre thanks to the availability of skilled staff, flexible labour markets and comparatively light regulation.

Over 300 different languages are spoken in the capital, ensuring it is one of the most cosmopolitan cities in the world. A wealth of theatres, cinemas, museums, galleries and historic and contemporary architecture contribute to the quality of life, along with 8,000 acres of parkland, more than 3,800 pubs, and over 200 nightclubs.

BritishAmerican Business Inc (BABi)

BABi stands at the heart of the transatlantic business relationship with over 700 member companies from both the UK and US. Based in New York and London, BABi has business networks that extend to 60 other European and American cities. Each year, BABi publishes BritishAmerican Business: The Guide to Investing in the UK. This 156-page handbook includes information about investing in the UK, a profile of the UK’s regions and details of organisations that can help you do business in the UK.

Facts in brief

Britain’s location is Western Europe, islands including the northern one-sixth of the island of Ireland between the North Atlantic Ocean and the North Sea, northwest of France. Lies near vital North Atlantic sea lanes; only 35km from France and linked by tunnel under the English Channel; because of heavily indented coastline, no location is more than 125km from tidal waters

Natural resources include coal, petroleum, natural gas, iron ore, lead, zinc, gold, tin, limestone, salt, clay, chalk, gypsum, potash, silica sand, slate, arable land

Agricultural products are cereals, oilseed, potatoes, vegetables; cattle, sheep, poultry; fish

Industries include machine tools, electric power equipment, automation equipment, railroad equipment, shipbuilding, aircraft, motor vehicles and parts, electronics and communications equipment, metals, chemicals, coal, petroleum, paper and paper products, food processing, textiles, clothing, other consumer goods

Diplomatic representation in the US — Chief of mission: Ambassador David G Manning

Diplomatic representation from the US — Chief of mission: Ambassador Robert Holmes Tuttle

Contact Information

BritishAmerican Business
Inc (BABi)
United Kingdom
75 Brook Street
London, W1K 4AD, UK
T: +44 (0) 20 7467 7400
E-mail: info@babinc.org
Website: www.babinc.org

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