To ask where our money comes from in UK?

[timegoesbysoso]

I keep hearing of the need to make buildings net zero, how it will create new jobs. How AI will revolutionise the country and so on. Lots of plans for expenditure.

But how do we make money? I have no clue about this? We don't seem to have any products to sell or any manufacturing etc

It can't just be massive money laundering (joking, I think).

Anyone know?

It would still be necessary to sift the fact from the bullshit though.

we have a huge creative arts sector - the creative economy (music, video games, film, books, theatre, cinema etc) is worth €110Bn a year - which is a useful stat to trot out to any philistines who think that studying art, drama and music at school is a waste of time

Hear hear 😎

I am an avid theatre/concert/opera/ballet goer and I always hear lots of foreign accents at these event. Often I get talking to some of these people and find that they've come to London specifically for these events. Many will travel elsewhere in the UK, either to go to the theatre, e.g. RSC at Stratford-on-Avon or the Edinburgh Festival, or to visit Bath, the Lake District, Scottish highlands, connect with their (distant) roots, etc.

Locally to me we make whisky, Irn Bru, lots of other food/drink, video games like Grand Theft Auto, tweed,

I bought my leather Chesterfields from a sofa manufacturer based in Bolton. Top quality materials, reasonably(ish) priced and I loved that they drove down to London straight from the factory to deliver them to me!

And still can't afford enough for our armed services

I had forgotten this was a big sector for us (haven't checked updates, though). I remember the strongly mixed feelings evoked by the big annual arms fair in London!

What a great question, OP and respondents. Thanks.

Yes I thought that was the case re higher quality. It’s certainly the case with what remains of the wool industry- really lovely high quality stuff like Abraham Moon.

I'm not dissing people's answers but I'm not really counting food and drink, I feel it should be a given a country produces those. I'd forgotten about wool etc, I do have some nice Harris tweed. Bizarrely we have some British wool pillows but they actually made in eastern Europe. So we shipped wool there, then back again inside a pillow?!

We ship merino from elsewhere, weave it and then export it again.
Still, in the 19th century we used to import cotton, spin and weave it then send it out all over the world including the places it came from in the first place.

Interesting thread - makes the UK sound quite dynamic. Then you wonder why the UK economy is so stagnant with no growth for years

And yet up here in Scotland, many people still want independence 🫠🫠

Net zero? There are thousands and thousands of properties that need to be retrofitted with energy efficiency measures. That creates a skilled workforce that we currently do not have. Net zero done properly has the potential to revamp the uk economy - Boris had a plan for it actually but like everything political gets put on the back burner once their not in favour anymore.

Because this thread is only looking at one side of the equation. There is what we export, and also what we import.

GDP growth is way below pre-referendum forecasts, and is almost stagnant currently.

Lots of little bits and pieces. Agricultural and forestry engineering and tech for example- Ifor Williams, Redrock, Timberwolf,etc. Not huge companies but they export quite a bit. My sister works for a company that sells livestock management software all over the world. A parent at school works for a company selling marine navigation systems all over the world. I know a few people working oil rig engineering, some from here, some from abroad working for UK companies in this field. Ditto medical research.
Other niche things like oil sheikhs spending squillions breeding and racing horses in Newmarket- the highest rated racehorse in the world ever, Frankel, stands at stud there for £350,000 per shag, 150-200 shags a year. Dubawi, another stallion in Newmarket, costs the same per mating. Racehorses in training quite often get sold to Hong Kong or Australia.

Over the last 5 years I believe the UK has stepped up in terms of manufacturing.

Ayeup @Beezknees I reckon we are neighbours.

We sell arms

We sell them to the USA, India, Europe, Oman, South Africa, South Korea, Israel, the United Arab Emirates and Saudi Arabia.

We are one of the most successful weapons manufacturers in the world.

Financial services

Financial services.

Over a trillion pounds of borrowing.

As for net zero, it’s a scam, sorry, lobbying effort by early entrants into this industry to get their hands on taxpayers cash.

@timegoesbysoso

Here's an overview of some key sources of income for the UK:

Services Sector: The services sector is the largest contributor to the UK's GDP. This includes industries such as finance, insurance, real estate, professional services, information technology, healthcare, education, and hospitality. London, in particular, is a global financial hub, attracting businesses from around the world.

Finance and Banking: The UK has a significant presence in the global finance and banking industry. The City of London is renowned for its financial services, including banking, asset management, insurance, and foreign exchange trading. Revenue from financial services contributes substantially to the UK economy.

Technology and Innovation: The UK is a leader in technology and innovation, with a thriving tech sector that includes startups, established companies, and research institutions. Artificial intelligence, biotechnology, fintech, and other emerging technologies play a crucial role in driving economic growth and creating new opportunities for revenue generation.

Manufacturing and Industry: Although the UK's manufacturing sector has declined in recent decades, it still plays a significant role in the economy. Industries such as aerospace, automotive, pharmaceuticals, and advanced manufacturing continue to contribute to GDP and export earnings.

Exports and Trade: The UK exports goods and services to countries around the world, generating revenue from international trade. Key export sectors include machinery, vehicles, pharmaceuticals, financial services, and creative industries such as film, music, and design.

Investment and Capital Flows: The UK attracts foreign investment in various forms, including foreign direct investment (FDI), portfolio investment, and venture capital. Foreign investors contribute to the economy by funding businesses, infrastructure projects, real estate developments, and other initiatives.

Natural Resources and Energy: While the UK is not a major producer of raw materials, it still extracts and exports resources such as oil, natural gas, coal, and minerals from the North Sea and other regions. Renewable energy sources such as wind, solar, and biomass also contribute to the energy sector.

Tourism and Hospitality: The UK's vibrant tourism industry attracts millions of visitors each year, contributing to economic activity through spending on accommodation, dining, transportation, entertainment, and retail. Famous landmarks, cultural attractions, historical sites, and events such as the Olympics and music festivals draw tourists from around the world.

We punch massively above our weight in terms of scientific research- we have the 2nd highest number of Nobel prizes in the world

Apparently Trinity College Cambridge alone has more Nobel winners than the whole of France.

The UK is the largest producer of medicinal cannabis in the world. The biggest greenhouse is in Norfolk owned by British Sugar.

A major problem with our economy is that a lot of it is based on extracting rents (enclosing scarce resources and then getting people to pay for them). Think about water companies, train companies, oil and gas extraction, housing rental, long government contracts etc.

This works against innovation, since rentiers just want to preserve their monopoly rather than change their practices to become more competitive.

Good article in the Guardian here.

The comment about Trinity vs France is interesting but of course in the first half of the twentieth century Trinity quite rightly picked up a stack during the heady days of atomic Physics (Bohr, the Braggs, et al).

UK vs. France recently has been a bit more balanced.

And the Managing Director of British Sugar is married to the Health Secretary.

All the posts on weapons - maybe it depends on how you count it but I don’t think we’re top five these days. Top ten, yes.