Sample Solution

    The United Kingdom is one of the most developed and advanced countries in the world. It has been an increasingly important economic powerhouse for many years as it ranks among the top five nations with the highest gross domestic product (GDP) in Europe and holds a leading role in international trade. Despite its stability, however,

UK faces some fiscal issues such as recurring deficits which have become a prominent concern since 2008 when it fell into recession after being hit by global financial crisis. The main causes of excessive deficits in the UK are weak tax collection, high levels of public spending, lack of economic growth and slow labor market productivity. Weak tax collection has been one of major factors causing large budget deficit. In recent years, government revenues from taxation have not kept up with total expenditure resulting to decrease in fiscal space available for public services delivery or infrastructure investment. This can be largely attributed to low corporate taxes rate as well lenient approach towards wealthy individuals who employ various strategies to reduce their liability through loopholes or legal avoidance schemes. Another issue related to taxation is regressive nature where taxes are proportionately higher on lower income households compared to those earn high incomes due to lack of progressive tax system which adopt progressive categorization based on different income levels along with wealth disparities throughout society because rich tend pay less than what they owe while poor shouldering heavier burden by paying more than they should actually be paying. Apart from weak taxation system, excessive public spending also contributes significantly toward rising budget deficit within UK economy especially during times when there is limited revenue being collected or economy facing downturns. Primarily this happens due government’s continuous reliance on debt-financing rather than cutting down expenditures resulting accumulation of large amount liabilities over time that need servicing thus further stretching already tight budgets allocated for essential services like health care, education etc.. Furthermore welfare payments like pension benefits also constitute considerable portion expenses thereby intensifying existing problems even more so if not managed properly could lead into dangerous spiral leaving country no choice but increase borrowing limit continually just keep going until complete collapse occurs eventually unless other steps taken avert these dangers immediately before becomes too late stop outflow resources completely prevent any future occurrences same kind situation happening again sometime near future (elevated national debt). In addition absence economic growth combined slow labor market productivity adds insult injury creating additional complications making matters worse instead improving them solve underlying problem root cause behind financial woes troubling nation currently facing due continuing uncertainty lingering air both external internal environments having direct adverse effect upon business prospects contributing badly towards morale sentiment people living working inside borders thus indirectly impacting performance overall annual GDP totals made year end reports indicating magnitude extent losses incurred past twelve months was far beyond expectations proving yet another evidence damage inflicted continues entire population losing faith authorities' ability handle challenging situation properly safely bring about positive outcome at earliest possible convenience soonest advantage whole union benefit peacefully way possible allowing everyone breathe sigh relief knowing everything will turn out fine eventually despite current conditions looking rather daunting especially given circumstances surrounding volatile atmosphere found almost every corner world today! Last point worth noting here involves aging demographics affecting labour markets across England Scotland Wales Northern Ireland - ageing cohorts make up majority workforce meaning fewer younger workers entering replaced older ones retiring retirement age leading reduced output per worker hours worked ultimately diminishing efficiency gains experienced previous periods time; firms face increased costs replace staff vacancies faster order remain competitive produce products/services required customers demand level quality desired supply side constraints emerge result slowdown effecting potential growth potentiality reach full utilization capacities easily achieved anymore without significant investments training retraining workers provide needed skillsets efficiently quickly enough ensure continuity operations longer term run without interruption expected interruptions caused unavoidable circumstances particularly recently under Brexit uncertainties & other geopolitical tensions still playing out within region geopolitical context wider world stage today.