World Country Guide

Business Profile

Economy
The UK is a member of the G7 group of the world’s leading industrial nations. Since the end of World War II, the UK has followed the trend among all major economies away from industrial production towards service industries, that now account for three-quarters of national income. The transition has often been painful, and although the UK is not unique in this respect – most Western European economies have undergone a similar process during the past 20 years – a worse situation might have occurred without the cushion of revenues from North Sea oil. The UK’s traditionally strong agricultural sector has suffered a number of serious setbacks, largely the result of dubious practices that appear to have been rife throughout British agriculture. These undoubtedly contributed to two major outbreaks of disease (BSE and foot-and-mouth) which have caused havoc in the industry and the loss of billions of pounds in export income. Engineering (especially of military products), chemicals, electronics, construction and textiles are the main components of the industrial sector. Among service industries, tourism, media, retail, financial services, telecommunications and computer services are the most important and have undergone rapid growth, while heavy industries have suffered relative decline. The Conservative administration of the 1980s and early 1990s was the first in Western Europe to dismantle the mixed economy of private and state-owned industries that had become the standard model for members of the EU. Many former state-owned industries including oil, telecommunications, gas and electricity, were sold to private shareholders, while the Government imposed tight fiscal controls and enacted pro-business legislation. Controls on trade and on the movement of capital were removed. The model has since been adopted throughout both the industrialised and developing worlds; it has been maintained and then extended by the Labour administration, which took office in 1997.
Britain’s economic performance in the last few years has been reasonable, although some cracks are beginning to show as the government has been forced to plan for a much higher level of borrowing than anticipated. A slump in manufacturing industry has pushed unemployment up to 1.5 million (5.2 per cent of the workforce). Both GDP growth (2.1 per cent) and inflation (1.8 per cent) are slightly below the EU averages. The UK’s external economic relations are now dominated by the EU (which accounts for 70 per cent of all UK trade), although there are other important trade links with the USA, the Far East and with members of the Commonwealth. Nonetheless, Europe dominates the economic agenda and the overriding issue facing present and future governments is the extent to which they are willing to integrate into the European economy. The argument is now focused on whether Britain should adopt the single European currency, the Euro. Although the economy met the necessary criteria, the Government chose not to join up when the currency was introduced in 1999. The Government has since remained firmly on the fence; while many political and business leaders favour membership, there is huge opposition in the country at large. The conclusion of the debate may be decisive to Britain’s economic future.

Business
Businesspeople are generally expected to dress smartly (suits are the norm). Appointments should be made and the exchange of business cards is customary. A knowledge of English is essential. Office hours: Mon-Fri 0900/0930-1700/1730.

Commercial Information
The following organisation can offer advice: The British Chambers of Commerce, 65 Petty France, St James's Park, London SW1H 9EU (tel: (020) 7654 5800; e-mail: info@britishchambers.org.uk; website: www.chamberonline.co.uk).

Conferences/Conventions
The UK conference scene is well organised with several publications comprehensively listing every possible kind of venue (including dedicated centres, hotels, universities, football grounds, race courses, manor houses, castles and theatres). In addition, regional and local tourist boards promote their own areas vigorously. Birmingham and London have an international reputation; there are several excellent conference venues. There are other towns with facilities of near comparable size, and comprehensive back-up services are available everywhere. Bristol, Glasgow, Manchester and Newcastle are among the cities offering a variety of venues, whilst smaller towns such as Chester, Inverness, Llandudno, Salisbury and York offer uniquely attractive environments without sacrificing efficiency. The large political parties of the UK traditionally hold their conferences in seaside towns during the winter; locations include Blackpool (the famous Winter Gardens), Bournemouth and Brighton. Those looking for conventional venues will find the maximum seating capacity (19,000 persons) in London; however, if organisers wished to book Wembley Stadium they could probably do it, so, effectively, there is no upper limit. All parts of the UK are easily accessible by rail and air from London. The British Conference Destinations Directory gives brief regional details and is published by the British Association of Conference Destinations, 6th Floor, Charles House, 148-149 Great Charles Street, Birmingham B3 3HT (tel: (0121) 212 1400; fax: (0121) 212 3131; e-mail: info@bacd.org.uk; website: www.bacd.org.uk).