According to the World Bank, Britain has topped the US from being the top country in the G7 to do business.
The United Kingdom has jumped two places up in the annual Doing Business report. They are now the 6th easiest country in the world for business startups and operations; thereby bringing the goal of the UK government to be in the 5th spot within sight. This would also mean that they are the best country in the G7 for having a quality and efficient regulation, putting them ahead of the top advanced economies in the world like Canada and Germany.
The World Bank says that countries like Singapore, that retained the top spot for 2016, and the UK, that moved up, had taken actions on cutting the red tape and made it easier for entrepreneurs to do business in their respective countries.
The agency even praised the government of the UK for its drive to reduce the rate of corporation tax and reduce the employer’s national insurance bills.
Research shows that the number of days it would take to start a business in UK on average is currently at 4.5 days compared to 6 days last year. This is against the average of 20 days throughout the world. This, then, propelled the rankings of Britain to the 17th spot according to the ease of new business startup from the 45th place in 2014.
Sajid Javid, the Business Secretary, said, “This is international recognition of the UK’s strong and stable business environment, competitiveness and entrepreneurial spirit.”
The World Bank, however, noted that UK had room for improvement in their judicial system. They also suggest that UK should do more to make it a lot easier to trade with other countries overseas.
In addition, the World Bank also emphasized that the top countries are not those that have no regulation but those who was able to balance their rules and the growth of the private sector.
Kaushik Basu, the chief economist and senior vice president of the World Bank, said, “A modern economy cannot function without regulation and, at the same time, it can be brought to a standstill through poor and cumbersome regulation.”
He adds that, “The challenge of development is to tread this narrow path by identifying regulations that are good and necessary, and shunning ones that thwart creativity and hamper the functioning of small and medium enterprises.”