UK jumps two places to become the 6th place in the world to do business
Posted on by Cindy Yip
Estimated read time: 4 mins
The Doing Business 2015 report is an annual report in its 12th year which compares the ease of doing business for domestic firms in 189 economies. It investigates the regulations that enhance business activity and those that constrain it in 11 areas of the business life.
The focus of economic policy is mainly on budgeting, monetary interventions and other government actions related to financial measures. When the economy performs poorly, a disproportionate amount of the debate centres on liquidity easing or tightening; what gets much less attention than it should are the nuts and bolts that holds the economy together and the plumbing that underlies it. The laws that determine how easily a business can be started, rules of administration and ease of getting permits are examples of nut and bolts that are rarely visible in the limelight but play a critical role. The malfunctioning of any of these can hinder the effectiveness of any fiscal or monetary policy. This is why the analysis of the areas of business life around the world forms the basis of an economy’s day to day effective development and functioning.
Below you can see the top 10 countries in the rankings of ease of business along with the 10 areas they were assessed against. United Kingdom climbed two places proving the government’s continued commitment to de-regulate and make it easier to start and grow a business is taking effect.
Business Secretary Sajid Javid said: “The UK has once again climbed up the rankings and is one of the top places in the world to do business, getting closer to the Government’s target of reaching the top five. This is international recognition of the UK’s strong and stable business environment, competitiveness and entrepreneurial spirit. Our economy is now growing faster than any other G7 nation.
“The Government is taking steps to ensure that every part of Britain benefits from the growing economy and that everyone who works hard gets the opportunities they need to succeed.”
Future Government actions to improve the ease of doing business include:
- Commitment to cut £10 billion of red tape in order to back British business and put resources to more productive use.
- Cutting tax – at 20 per cent, the UK already has the joint lowest corporate tax rate in the G20, but it will be cut further to 18 per cent in 2020, making it the lowest in the G20.
- Boosting skills and productivity by raising the quantity and quality of apprenticeships in England to three million starts by 2020.
- Investing £6.9bn in UK research infrastructure up to 2021 – improving knowledge, expertise and productivity.
- Building stronger trading links with emerging markets, especially China, India and Brazil; and delivering a Europe that is more dynamic and outward focussed as part of our renegotiation.
An economy with an efficient bureaucracy and rules of governance that facilitates entrepreneurship and creativity among individuals, and provides an enabling atmosphere for people to realize their full potential, can enhance living standards and promote growth and shared prosperity.