The UK has a partially regulated market economy. Based on market exchange rates, the UK is today the fifth-largest economy in the world and the second-largest in Europe after Germany. HM Treasury, led by the Chancellor of the Exchequer, is responsible for developing and executing the government's public finance policy and economic policy. The Bank of England is the UK's central bank and is responsible for issuing notes and coins in the nation's currency, the pound sterling. Banks in Scotland and Northern Ireland retain the right to issue their own notes, subject to retaining enough Bank of England notes in reserve to cover their issue. The pound sterling is the world's third-largest reserve currency (after the US dollar and the euro). Since 1997 the Bank of England's Monetary Policy Committee, headed by the Governor of the Bank of England, has been responsible for setting interest rates at the level necessary to achieve the overall inflation target for the economy that is set by the Chancellor each year.
The United Kingdom does not have a single legal system as Article 19 of the 1706 Treaty of Union provided for the continuation of Scotland's separate legal system. Today the UK has three distinct systems of law: English law, Northern Ireland law and Scots law. A new Supreme Court of the United Kingdom came into being in October 2009 to replace the Appellate Committee of the House of Lords. The Judicial Committee of the Privy Council, including the same members as the Supreme Court, is the highest court of appeal for several independent Commonwealth countries, the British Overseas Territories and the Crown Dependencies.
More InfoNonetheless, "Britain was a very wealthy country, formidable in arms, ruthless in pursuit of its interests and sitting at the heart of a global production system." After Nazi Germany invaded Poland, Britain entered the Second World War by declaring war on Germany in 1939. Winston Churchill became prime minister and head of a coalition government in 1940. Despite the defeat of its European allies in the first year of the war, Britain and its Empire continued the fight alone against Germany. Churchill engaged industry, scientists and engineers to advise and support the government and the military in the prosecution of the war effort. He formed a Special Relationship with the United States, and won their agreement to a Europe first grand strategy for the Allies. In 1940, the Royal Air Force defeated the German Luftwaffe in a struggle for control of the skies in the Battle of Britain. Urban areas suffered heavy bombing during the Blitz. There were eventual hard-fought victories in the Battle of the Atlantic, the North Africa campaign and the Italian campaign. British forces played an important role in the Normandy landings of 1944 and the liberation of Europe, achieved with its allies the United States, the Soviet Union and other Allied countries. The British Army led the Burma campaign against Japan and the British Pacific Fleet fought Japan at sea. British scientists contributed to the Manhattan Project which led to the surrender of Japan.
More InfoAfter the end of the Second World War in 1945, the UK was one of the Big Four powers (along with the U.S., the Soviet Union, and China) who met to plan the post-war world; it was an original signatory to the Declaration of the United Nations. The UK became one of the five permanent members of the United Nations Security Council and worked closely with the United States to establish the IMF, World Bank and NATO. The war left the UK severely weakened, but it was spared the total war that devastated eastern Europe, and it depended financially on the Marshall Plan. In the immediate post-war years, the Labour government initiated a radical programme of reforms, which had a significant effect on British society in the following decades. Major industries and public utilities were nationalised, a welfare state was established, and a comprehensive, publicly funded healthcare system, the National Health Service, was created. The rise of nationalism in the colonies coincided with Britain's now much-diminished economic position, so that a policy of decolonisation was unavoidable. Independence was granted to India and Pakistan in 1947. Over the next three decades, most colonies of the British Empire gained their independence, with all those that sought independence supported by the UK, during both the transition period and afterwards. Many became members of the Commonwealth of Nations.
More InfoThe UK was the third country to develop a nuclear weapons arsenal (with its first atomic bomb test in 1952), but the new post-war limits of Britain's international role were illustrated by the Suez Crisis of 1956. The international spread of the English language ensured the continuing international influence of its literature and culture. As a result of a shortage of workers in the 1950s, the government encouraged immigration from Commonwealth countries. In the following decades, the UK became a more multi-ethnic society than before. Despite rising living standards in the late 1950s and 1960s, the UK's economic performance was less successful than many of its main competitors such as France, West Germany and Japan.
More InfoAfter the defeat of France at the end of the Revolutionary and Napoleonic Wars (1792–1815), the United Kingdom emerged as the principal naval and imperial power of the 19th century (with London the largest city in the world from about 1830). Unchallenged at sea, British dominance was later described as Pax Britannica ("British Peace"), a period of relative peace among the Great Powers (1815–1914) during which the British Empire became the global hegemon and adopted the role of global policeman. By the time of the Great Exhibition of 1851, Britain was described as the "workshop of the world". The British Empire was expanded to include India, large parts of Africa and many other territories throughout the world. Alongside the formal control it exerted over its own colonies, British dominance of much of world trade meant that it effectively controlled the economies of many regions, such as Asia and Latin America. Domestically, political attitudes favoured free trade and laissez-faire policies and a gradual widening of the voting franchise. During the century, the population increased at a dramatic rate, accompanied by rapid urbanisation, causing significant social and economic stresses. To seek new markets and sources of raw materials, the Conservative Party under Disraeli launched a period of imperialist expansion in Egypt, South Africa, and elsewhere. Canada, Australia, and New Zealand became self-governing dominions. After the turn of the century, Britain's industrial dominance was challenged by Germany and the United States. Social reform and home rule for Ireland were important domestic issues after 1900. The Labour Party emerged from an alliance of trade unions and small socialist groups in 1900, and suffragettes campaigned from before 1914 for women's right to vote.
More InfoWe don't show ads. Help us keep it that way.