Capital Investment

Firstly, the recovery is insufficient. A number of indicators of British economy now are worrying. On one hand, the problem is the fiscal deficit. In order to promote the economy to recover, Brown has increased government investment, will push the fiscal deficit to a record 178 billion pounds, accounting for 12.6% of GDP (Bernard, 2002). On the other hand, since the development of technology and production scale in the main industry field can not competitive with other development countries, even can not compete with some developing countries, such as China and Indian. The industrial competitiveness of UK is getting weakened gradually.

Secondly , the unemployment rate continued driven forces. Since the financial crisis, the United Kingdom unemployment rose again. Although the end of last November’s 3 months the number of unemployed was 246 million less than the previous 3 months 7,000 people a year and a half years to achieve, “the first time the unemployment rate down”, but unemployment remains high at 7.8% (Aitken , 2005).

Third, the strategy of accelerate the recovery of the follow-up is limited. In order to revitalize the economy, Brown’s government can be said to the utmost. Currently, the basic interest rate at a historic low of 0.5%, continue the quantitative easing policy, but the lower one-year consumption tax by 2 percentage points of the measure in January of this year has ended (Bernard , 2002).

Fourth, industrial structure is a important factors which affect the development of Britain’s economy. In Britain structure, the manufacturing accounted for a large proportion. If UK want to maintain the sustainable development, it must change the industrial structure. On one hand ,it should reduce the proportion of manufacturing. On the other hand, it should increase the proportion of service, especially the proportion of high-tech services.