The twenty-first edition of the Heritage Foundation's popular survey of economic liberty
This 21st edition of the Index analyses economic policy developments in 186 countries and territories since the second half of 2013. Economies in six regions have been graded and ranked on 10 aspects of economic freedom that evaluate the rule of law, the intrusiveness and size of government, regulatory efficiency, and the openness of markets.
The United Kingdom’s economic freedom score is 75.8, making its economy the 13th freest in the 2015 Index. Its score has increased by 0.9 point since last year, reflecting improvements in half of the 10 economic freedoms, including fiscal freedom and labor freedom, that outweigh declines in business freedom and freedom from corruption. The U.K. is ranked 5th out of 43 countries in the Europe region, and its overall score is above the world and regional averages.
Over the past five years, economic freedom in the U.K. has advanced by 1.3 points. Led by a sizeable improvement stemming from corporate tax rate cuts in recent years, score improvements have occurred in four of the 10 economic freedoms, including fiscal freedom and property rights.
Historically a champion of economic freedom in Europe, the United Kingdom has developed its economy based on a strong rule of law, an open trading environment, and one of the world’s most advanced financial sectors. A relatively liberal labor market by European standards complements one of the world’s most efficient business environments. Large government spending, which still takes up nearly half of the domestic economy, has consumed resources that could have enabled additional private-sector growth.
For the full index, go to the Heritage Foundation.
Published by the Heritage Foundation in association with the IEA, 2015