Britain’s economy is soaring past its European counterparts thanks to an employment boom, a major new report says today – but education and health standards are slipping to the bottom of the league table.
The research was conducted for the Legatum Institute’s annual Prosperity Index, which measures its results by looking at the economic success and well-being of 142 countries across eight different categories: Economy, Entrepreneurship & Opportunity, Governance, Education, Health, Safety & Security, Personal Freedom, and Social Capital.
The index noted the UK has reached the highest level of economic success ever recorded, climbing nine places from 2014 to secure 19th place in the Economy category, while also being ranked as the 15th most prosperous country in the world.
The UK ranked sixth, up from eighth last year, according to opportunities for entrepreneurs, which looks at the countries where citizens are encouraged to be entrepreneurial, innovative and seek opportunities for a higher level of income and well-being. Knocking on the door of the top global five, it is considered one of the best places in Europe to start a business.
Low costs associated with setting up a business combined with people’s perceptions of the UK’s entrepreneurial environment contributed to the country’s high ranking. The data showed that 88 per cent of Britons believe that if you work hard you can get ahead in life, up from 84 per cent last year, and 78 per cent in 2010 – the highest in the EU. The UK also retains the third lowest start-up costs in the world at just £81.45 in 2014.
But in many of the other categories the index measured, including education and health, Legatum saw the UK falling behind most major developed economies.
Legatum authors noted that while the UK ranks in the top three per cent worldwide for the number of children in primary school, it has fallen into the bottom fifth for pupils in higher education or vocational training.
For health, Legatum placed the UK 20th, compared to the United States (11th) and Germany (6th).
“Britain’s real success has been its recent economic transformation. Since the financial crash, the government has prioritised getting people into work. And the results are quite incredible,” said Nathan Gamester, programme director of the Prosperity Index.
A different survey by the World Bank also ranked the UK as the sixth best place to do business recently as measured by regulations that enhance business activity across 189 countries.
However, a similar list called the 2015 Index of Economic Freedom, compiled by The Wall Street Journal and the Heritage Freedom, ranked the UK much lower, in 13th place.
