U.K. #5

Taxation in the U.K. involves payments to a minimun of two different levels of government: the central government and local government.
The central government revenues come primarily from income tax, national insurance contributions, value added tax, corporation tax and fuel duty.
The local government revenues come from grants from central government funds, business rates in England, Council Tax, and from fees and charges such as those from on-street parking.

Most of the developments in UK taxation have been in line with following things.

1. the share of revenue provided by VAT has greatly increased, while the share provided by taxes on specific goods has fallen by a similar amount.
2. basic and higher rates of income tax have been cut.
3. new environmental taxes have been introduced.

But there are some unusual things.

1. the UK applies a zero rate of VAT to many more goods than most other countries.
2. an unusually small share of UK tax revenue comes from social security contributions but an unusually large share comes from recurrent tax on buildings( council tax and business rates).

A Land Tax was introduced in U.K. in the late 17th century. This was the main source of government revenue throughout the 17th, 18th, and 19th century. 

And income tax was introduced by William Pitt the Younger in 1799, to pay for weapons and equipment in the preparation for the Napoleonic Wars. Income tax was levied under five schedules: Schedule A- tax on income from U.K. land

Schedule B-tax on commercial occupation of land

Schedule C-tax on income from public securities

Schedule D-tax on trading income, professions, vocations, overseas income

Scheduel E- tax on employment income

But Pitt's income tax was abolished by Henry Addington during the Peace of Amiens.

http://www.hmrc.gov.uk/rates/it.htm

http://www.ifs.org.uk/mirrleesreview/dimensions/ch1.pdf

U.K. # 4

U.K. is based on constitutional monarchy, which is can be broken down into three parts: the sovereign, the upper chamber/house, and the lower chamber/house. Her Majesty's Government is the central government of the U.K. The government is led by the Prime Minister, David Cameron, who was appointed by Queen Elizabeth II.
There are 4 main problems that U.K. is facing: decline in GDP, rise in unemployment, bank lending, and rise in government borrowing.
Since the recession started, UK GDP declined about 3.8% since 2009, which makes the recession very deep.
Unemployment also rose from 2 mil. in 2009 to 3.mil. in 2010. Unemployment is the biggest cause of poverty in the UK.
Due to global credit constraints, bank have cut back on lending to firms, households and for mortgages. It has effected investment and demand for housing.
The 2009 recession caused a rapid rise in the government borrowing. Public sector debt has risen to 47% of GDP and rose nearly 60% of GDP at the end of the recession. Higher government borrowing caused the weaker Pound and raised the prospect of future tax rises.
One interesting fact is that immigration is regarded as the biggest issue facing British society. Over the past two decades, both immigration and emigration increased, with those entering the country exceeding those leaving by more than 100,000 in every year.

http://www.state.gov/r/pa/ei/bgn/3846.htm
http://www.guardian.co.uk/uk/2013/jan/13/immigration-british-society-biggest-problem
http://notayesmanseconomics.wordpress.com/2010/05/12/the-economic-issues-facing-the-new-uk-government/
http://www.economicshelp.org/blog/1426/economics/main-problems-in-uk-economy/