History of UK Finance
“I am prepared for the worst, but hope for the best” – Benjamin Disraeli
World War 1
1914-1918
During World War 1, the UK saw declines in production due to the reallocation of resources into munitions. The country received vast financial support from the US amongst other countries.
World War 2
1939-1945
During WWII, the UK funded munitions, oil and raw materials through its gold reserves and dollars from the US. The UK lost 2/3 of export trade compared to before the war, whilst receiving $31.4 billion from the US over the course of WWII.
World War 2
Brexit
2016-2020
The UK officially left the EU on 31st January 2020, having been part of the EU since 1973. Brexit was seen as a key contributor to the cost of living crisis in the UK. It is estimated that the average Brit is £2000 worse off due to Brexit
COVID
2020
The impacts of COVID are still being felt in the UK today. In 2020, the UK stock market fell to its worst point since the 2008 financial crises. Household spending fell 20% and unemployment rose. Measures were taken to boost the UK economy, including reducing the cost of borrowing to encourage business loans, as well as schemes including ‘eat out to help out’.
COVID
For more detailed information on the UK’s financial history, read here!
Key Terms:
| Export Trade – The action of foreign countries purchasing your goods, for example the US purchasing UK produced cars.
Cost of borrowing – The rate it costs for businesses to take out loans. |
