The paper 'International Business Environment 'is a great example of The UK economy is under pressure from the extended impacts of economic recession. The rising level of unemployment in the UK is a major concern to policymakers. This paper presents an analysis of current policies that the English government can introduce to mitigate the economic impacts of the recession. This paper presents a background of the state of affairs in the Northeast of England and in Scotland. The paper develops into view into theories about the optional development of economies before analyzing the recent government efforts employed in the two separate countries. Background The divide between the north and south of Britain has significantly widened since the start of the 2008 recession, and the trend is likely to worsen as the household's worst hit by the increasing unemployment and falling house prices hail from Northeast of England.
According to an economist report from the Price water-house Coopers on a regional financial index, rising taxes, stalling wage growth, and personal insolvencies also increase the pressure on people. As the unemployment rate increases, it is once again North East Britain is enduring the worst global economic recession, compounded with crude and austerity measures employed by the government.
According to the OECD report, the extended global recession in Northeast of Britain might extend until the next spring. The northern economy is experiencing weak demand for its exports. In addition, the unemployment rate in the public sector has markedly increased resulting in large amounts of delayed pensions. The unemployment rate in the North East stands at 12%, the highest in Britain, and well above the national rate of 8.4% (.. .). Reports by accountancy firm, Begbies Traynor has revealed that the impacts of cuts in public spending are leading to a growing divide in levels of business distress between the north and south.
Companies located in the north-west, the Midlands, Yorkshire, Wales and the east of England face increasing financial pressure, while the southeast and London are getting off relatively lightly. The northeastern region was the worst hit by the knock-on effects of heavy reliance on the public sector following disproportional squeezing of many small and medium-sized enterprises by the austerity programs introduced by the government.
The austerity measures introduced by the government have worsened the economies of many northeastern cities. The cuts on public spending have worsened the conditions in the region already struggling with high levels of unemployment, shrinking job markets, and feeble economic growth, not forgetting poor health and poverty that is also escalating. The region is relatively dependent on the public sector, with more than 25% of jobs in the public sector. According to a report released by Fiscal Studies in 2012, the overall cut on local government spending in the region is some of the largest in the UK.
With relatively low business start-ups and stocks, both at around 65% of national rates, increasing employment rates and growth in the private sector will prove difficult in many areas across the region. Notwithstanding the recession, there has been positive progress in some areas. Newcastle's economy received strong growth prior to 2008 with employment growing rapidly than in any other major city in and outside London. In addition, there is evidence of investment and confidence despite the economic slowdown including the establishment of Virgin Money headquarters in Newcastle; private sector investment of £ 100million on the North Bank; completely pre-let major city center retail extension; and new office rentals across the city center.
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