The Good and Bad of London’s Economic Boom: 3 Consequences for UK Plc
A recent research piece from Randstad CPE has found that London has risen past the economic bubble and the 2007 financial crash to become once again one of the leading economic centres in the world. The boom from 1997 to 2006 saw a significant increase in the UK’s growth. The years after the crash of 2007 have been prosperous for 20 percent of the income earners in the UK and have brought an economic boom to London.
London’s Economic Boom is an International Cause and Effect
The current prosperity of London is an international cause and effect that seems to be resting on the shoulders of a few within the London economic scene. London and the southeast portion of the UK have prospered while the rest of the country seemed to be at the height of a financial panic.
London’s Upscale Property Market Has Advanced
Research shows that a quarter of the UK population is responsible for half of the country’s growth. The remaining three quarters of Britons are left to share the remainder of the goods and services. London’s upscale property market has been positively affected by this change in the overall economic environment. The larger and more expensive homes have become attractive investment properties for those who have been positively affected by this economic imbalance.
Many Growing Pains and Economic Scandals Have Emerged
The UK has seen a growing imbalance in income distribution and a regional imbalance for its middle class citizens. The middle class of the UK have become more and more restricted financially, and their incomes are not covering basic costs. The higher 20 percent earners are seeing a lopsided advantage. Here are some important factors to keep in mind:
- The UK economy is presently lopsided and regional.
- Painful cuts in government spending have significantly affected the middle class.
- Banks are hesitant to lend out to small businesses.
- The bottom 20 percent of the UK population has been helped with government assisted increases in the minimum wage amount.
- The imbalance in the UK economy seems to be hitched to a few industries in one corner of the country.
Consequences for London and the UK
London’s economic boom seems to be a function of its position within the international financial markets. The higher earners in this region are producing 48 percent of the country’s growth, and this growth is attached to a few modern and technologically based industries. The new UK economy is focused in London and in this region of the country. The consequences for the UK include a significant imbalance for the rest of the country.
A quarter of the UK’s population is responsible for half the country’s growth. This leaves the remaining three quarters of the UK with consequences including a regional imbalance and a growing divide between the top earners and the remainder of the country. The UK economy is presently lopsided with a booming economy in London, and the rest of Britain has been left behind. There is a top 20 percent of the UK population with a 48 percent share of the profits within a burgeoning and technological group of modern industries.
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