UK Knowledge

Question 1

What monetary policies have been used?

Answer 1

Interest rates decrease from 4.75% to 4.5% (April 2025)
£450 bn QE used in covid

Question 2

What fiscal policies have been used?

Answer 2

Increased Capital gains tax: 10% to 18% for lower earners and 20% to 24% for higher earners
Spent £1bn on low income households to Household Support Fund (HSF) to financially support them (2023)

Question 3

What market based policies have been used?

Answer 3

CMA used deregulation by reducing reporting requirements a firm makes (2021-2023) to reduce red tape allowing more efficiency and competition

Question 4

What interventionist policies have been used?

Answer 4

Spent £110bn on High Speed 2 Connecting London to brum, Liverpool, Manchester, Scotland but was too expensive due to opp. cost and only phase 2 (London to brum) was carried on
£557mil subsidies to offshore wind sector deal (2019-2030) but whole amount of £40bn

Question 5

5 key stats

Answer 5

Inflation - 2.8% (Feb 2025)
Trade deficit - £32bn (2024)
Unemployment - 4.3% up from ( 3.7% in 2023)
Debt - 97.7% of GDP (2023)
Avg growth per year - 0.3% (2010-2024)