Business Cycle or Economic Growth in the UK Essay

Business Cycle or Economic Growth in the UK - Essay Example In the United Kingdom, economic growth has been driven by investment in infrastructure, investment in science and technology, increased access to business finance, increased exports and support for inward investment, reduction of corporation tax, simplification in business regulations, educating the workforce, tackling long term housing market issues and government support for local growth. This paper discusses economic growth in the United Kingdom with particular focus on the causes of economic growth, longstanding policies and their effect on balanced economic growth and gives recommendations on how the United Kingdom can promote further economic growth. For nations to succeed in the competitive global economy, the respective governments must take action. The government of the United Kingdom has not been left behind. It has taken initiatives to encourage economic growth and at the same time, it continues to support hardworking citizens who want to succeed in life. For stable and continuous economic growth, the initiatives taken by the United Kingdom government include: A nation cannot run effectively without economic infrastructure. For this reason, the government of the United Kingdom has placed economic infrastructure development at the heart of its economic growth policies. Economic infrastructure not only promotes economic growth but also creates employment. Examples of economic infrastructure include construction of power plants, airports, railways and roads, and provision of support services such as security systems and street lighting. Over the years, the United Kingdom has developed its infrastructure networks. According to a finding by OECD, â€Å"between 1970 and 2005, investment in UK roads, rail and electricity generating capacity had a stronger positive effect on the level of GDP per capita, and on short term growth, than other types of capital investment† (HM Treasury and Infrastructure UK, 2010). In 2009, the United Kingdom government created