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/