利率在一个国家的发展和经济扩张中起着至关重要的作用。对各行业或领域的直接投资在很大程度上取决于利率，因为这有助于投资者利用银行的资金获得投资的便利。利率也是经济体内的价格管制者，为了改善经济状况，通货膨胀和货币供应量，央行采取强有力的决策降低利率。在英国，英国央行（Bank of England）列出了看到经济条件的利率。
政府的整体财政状况由政府收入和支出来通知。两者的平衡决定了经济是否处于过剩状态或经历了赤字。在英国，政府的支出超过了它的收入（Marks and Sweet，2013）。自1980年以来，政府收入低于导致英国赤字的支出。
Interest rates have vital role in development and economic expansion of a country. Direct investment in various industries or sectors largely depends on interest rates as it helps investors to get ease in their investment using finances from banks. Interest rates are also a price controller within the economy as in order to improve economic condition, inflation and money supply, central banks take strong decisions to lower down interest rates. In the UK, Bank of England sets out interest rates seeing conditions of the economy.
From the figure above by ONS, it can evident that interest rates were ranging from 6 % to 5% during 1993 to 2008. However, since March 2009, bank interest rate has been 0.5% which is very low as compared to all time historical trends (ONS, 2015). Low interest rate was aimed to improvise investment in the economy and boost up consumer spending by reducing cost of borrowing.
Government Spending in the UK
Overall financial position of the economy is notified by the government income and its spending. Balance of both determines whether the economy is in surplus situation or experiencing deficit. In the UK, government has spent larger than what it has earned (Marks and Sweet, 2013),. Since, 1980, government income is less than expenditure that has resulted in UK deficit continually.