The government was elected in a landslide victory in July 2024 on a promise not to raise taxes on income for working people, and Reeves acknowledged that some of the budget’s £26 billion ($34 billion) in tax hikes broke the spirit of that pledge and would face criticism. Since leaving the EU most disputes under UK-EU agreements are addressed through consultation between the parties. In 1982 Argentina invaded the British territories of South Georgia and the Falkland Islands, leading to the 10-week Falklands War in which Argentine forces were defeated. The inhabitants of the islands strongly favour British sovereignty, expressed in a 2013 referendum. From 1984 the British economy was helped by the inflow of substantial North Sea oil revenues.114 Another British Overseas Territory, Gibraltar,115 is a key military base; a referendum in 2002 on shared sovereignty with Spain was rejected.
Wales, a congeries of Celtic kingdoms lying in Great Britain’s southwest, was formally united with England by the Acts of Union of 1536 and 1542. Scotland, ruled from London since 1603, formally was joined with England and Wales in 1707 to form the United Kingdom of Great Britain. (The adjective “British” came into use at this time to refer to all the kingdom’s peoples.) Ireland came under English control during the 1600s and was formally united with Great Britain through the Act of Union of 1800. The republic of Ireland gained its independence in 1922, but six of Ulster’s nine counties remained part of the United Kingdom as Northern Ireland.
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Scotland, occupying northern Great Britain, includes the Orkney and Shetland islands off the northern coast and the Hebrides off the northwestern coast. United Kingdom, island country located off the northwestern coast of mainland Europe. The United Kingdom comprises the whole of the island of Great Britain—which contains England, Wales, and Scotland—as well as the northern portion of the island of Ireland.
Inflation in the UK
Despite having one of the highest levels of income inequality in the OECD,268269 the UK has a very high HDI ranking, including when adjusted for inequality. As of 2025 the UK unemployment rate is 4.7%,270 which is moderately low by European standards. The United Kingdom has made significant contributions to the world economy, especially in technology and industry.
In the three months to September 2025, average weekly earnings in the United Kingdom grew by 4.6 percent. In the same month, the inflation rate for the Consumer Price Index was 3.6 percent, indicating that wages were rising faster than prices that month. Inflation is an important measure of any country’s economy, and the Retail Price Index (RPI) is one of the most widely used indicators in the United Kingdom, with the rate expected to be 4.1 percent in 2025, compared with 3.6 non gamstop casinos percent in 2024. This followed 2022, when RPI inflation reached a rate of 11.6 percent, by far the highest annual rate during this provided time period. In 2024, the annual inflation rate for the United Kingdom was 2.5 percent, with the average rate for 2025 predicted to rise to 3.5 percent, revised upwards from an earlier prediction. The UK has only recently recovered from a period of elevated inflation, which saw the CPI rate reach 9.1 percent in 2022, and 7.3 percent in 2023.
Annual inflation rate of the Consumer Price Index in the United Kingdom from 2019 to 2030
The entire contents of the budget were leaked half an hour before Treasury chief Rachel Reeves delivered the budget statement in the House of Commons. Prof Peter Murphy says working together would give the islands more influence in negotiations. The possibility of redesigning the Union Flag to include representation of Wales was discussed in 2007.541 The national anthem of the United Kingdom is “God Save the King”, with “King” replaced with “Queen” in the lyrics whenever the monarch is a woman. The UK has many gastropubs and is the birthplace of many alcoholic drinks including several beer styles such as pale ale, India pale ale, bitter, brown ale, porter, and stout. The number of craft beers and microbreweries has expanded rapidly in the last two decades.512 Other popular alcoholic drinks produced in the UK include Scotch whisky, English wine, gin, perry and cider.
- Inflation nevertheless remains elevated, fueled not only by high food inflation, but also by underlying core inflation.
- A quirky seaside city filled with diverse cuisine, vintage shopping and adrenaline-fuelled adventure.
- Northern Ireland also has symbols, many of which are shared with the Republic of Ireland.
- England, Wales and Scotland each have their own national symbols, including their national flags.
- The next election doesn’t have to be held until 2029, and the government continues to hope that its economic measures will spur higher growth and ease financial pressures.
There also still exists a noticeable gender pay gap in the UK, which was seven percent for full-time workers in 2024, down from 7.5 percent in 2023. Lastly, the monthly earnings of the top one percent in the UK was 15,887 pounds as of November 2024, far higher than even that of the average for the top five percent, who earned 7,641 pounds per month, while pay for the lowest 10 percent of earners was just 805 pounds per month. On November 4, Reeves made a speech to prepare the public and markets for a hike in income tax rates, which would break a key election promise. After an outcry among Labour lawmakers, and a better-than-expected update on public finances, she reversed course, opting for a smorgasbord of smaller revenue-raising measures.