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ENGLAND

Economy

Parallel to the global economy, the British economy has weakened over the last couple of years. Nevertheless, unemployment is at a 27-year low and average earnings are up 4.4% as at May 2006. Furthermore, the UK is crying out for specific skills, to fill vacancies in areas such as IT, nursing, teaching, and other professions.

London is at the heart of Britain's economy. More than one-third of Britain's population and economic activity is concentrated in southeastern England, in and around London. The annual size of London's economy, estimated in 1997 to be about $122 billion, is comparable to the economies of industrialized nations. More than a hundred of the world's major companies have their headquarters in London. What Londoners do for a living has changed considerably since the city was a commercial and industrial center in the 19th century. Manufacturing has steadily declined and today accounts for only 10 percent of total employment. The printing and publishing industry is now a leading employer. Also important are electrical and electronic engineering; food, drink, tobacco, chemicals and synthetic fibers. The service sector today employs 85% of London’s workforce.

Value Added Tax (VAT): VAT is a tax on the final consumption of certain goods and services in the home market and is currently levied at 17.25%. All prices displayed in shops will be tax inclusive.
Income Tax: Income tax is 20% on average and the highest personal income tax rate is 40%. Personal income tax is leaned on a progressive scale.
Corporate Tax: rate is 30%.
For more information: http://www.direct.gov.uk and http://www.uktax.demon.co.uk/

Cost of living: The cost of living in the UK is very high and is dependent on your geographical location. It has been suggested that a student will need about £8,000 - £10,000 to meet the basic expenses of living in London (excluding tuition fees) and a couple will need about £12000 - £15000 a year, with at least an extra £2000 per year for each child.

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Figures are approximate, in US dollars as at August 2006
Exchange rate: 1 Pound Sterling = $US 1.90 as at August 2006

ENGLAND