United Kingdom

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The Media: Radio, Television, and the BBC

Historically, broadcasting in Britain has been treated as a public service responsible to the people through Parliament. In recent decades broadcasting has been opened up to market competition. The British Broadcasting Corporation (BBC), set up in 1922, is a large public television and radio service that is primarily supported by license fees paid annually by each household. In 1955 Independent Television (ITV) stations were permitted and began to present some competition to the BBC. The government licenses and regulates broadcasting through the Independent Television Commission (ITC) and the Radio Authority. Today Britain has 5 terrestrial television channels and almost 200 radio stations. There are numerous satellite companies based in Britain, and an increasing number of cable companies.

BBC 1 and BBC 2 are complementary national television networks—one provides a range of programs meant to have a wide-ranging appeal, while the other broadcasts more innovative shows geared toward specific groups. The BBC carries no advertising and regularly transmits educational broadcasts. The proceedings of Parliament are freely broadcast on both radio and television. Britain also has three ITV channels that are licensed out to private television companies in 14 designated television regions. These private companies support themselves with advertising and sponsors, but are regulated by the ITC. Wales presents public broadcasts on a Welsh-speaking channel. These broadcasters face competition from digital satellite and cable television stations.

The BBC has five radio networks that broadcast throughout Britain. There are also three independent national radio services (classical music, rock music, and talk radio), and about 250 independent local radio services. These independent radio services are awarded licenses by the Radio Authority. BBC World Service Radio broadcasts around the world in English and 45 other languages, carrying extensive programs and high-quality news broadcasts.

In 1990 the Broadcasting Act was passed in an attempt to guarantee standards of decency, accuracy in news coverage, and balanced presentations of controversial topics, while encouraging more competition in television and radio. The Broadcasting Act passed in 1996 addressed the new digital technologies in broadcasting that would allow for more radio and television services to be made available to the public. To handle this increased broadcasting capability, the government allowed the licensing of at least 18 more national television channels and at least 12 more radio services. The Broadcasting Standards Commission was set up in 1997 to set standards for radio and television broadcasts, to monitor violent and sexual content, and to respond to complaints about broadcasts.

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The Press

Britain has one of the largest publishing industries in the world. There are ten morning daily newspapers and nine Sunday papers published nationally. In addition, hundreds of regional and local newspapers and some 7,000 periodicals, mainly weeklies and monthlies, are published in the United Kingdom. Noted weeklies include the Economist, the New Scientist, the New Statesman, the Spectator, and the Times Literary Supplement.

Britain is home to some of the oldest newspapers in the world. The Observer and the Times have both been published since the late 18th century. In the past newspaper publishing was concentrated in Fleet Street in London, but the national papers have moved their editorial and printing facilities away from Fleet Street or out of London. British newspapers range from “quality” papers that focus on the news to “popular” papers that emphasize entertainment. Quality newspapers, such as the Financial Times and the Guardian, include the most respected newspapers. The popular papers—the Sun, the Daily Mirror, and the Daily Star—are referred to as tabloids and are characterized by sensationalist stories, gossip, and lavishly illustrated stories. Other papers, such as the Daily Mail and Express, offer a middle ground between news and entertainment stories.

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Foreign Trade

Foreign trade has been vital to Britain for hundreds of years. Britain’s prominent position in world trade during the 18th and 19th centuries resulted largely from its geographical isolation from the wars and political troubles that afflicted the centers of trade on the European Continent. The development of trading companies, such as the East India Company and Hudson’s Bay Company; colonial expansion; and naval control of the seas also contributed to Britain’s preeminence.

Britain remained one of the world’s leading trading nations in the 21st century. It generally ran a large trade deficit, with imports exceeding exports. Visible exports, or trade in merchandise, account for only about half of Britain’s overall trade. Trade in services—including sea transport, civil aviation, travel, government services, investment income, transfers, and financial services—accounts for the other half. Much of Britain’s trade is with the European Union, especially Germany, France, and Netherlands. The United States is another major trading partner.

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Banking and Financial Services

Britain is one of the world’s leading financial centers. Banking, finance, insurance, and other business services accounted for about more than a quarter percent of Britain’s output in the early 2000s and more than 5 million people were employed in this sector.

The Bank of England, chartered in 1694, was nationalized in 1946 and is the only bank that issues banknotes in England and Wales. Several banks in Scotland and Northern Ireland issue currencies in limited amounts. After the Labour government was elected in 1997 the Bank of England was given operational independence in monetary policy. This means it can set interest rates independent of the government in power, much as the Federal Reserve does in the United States. There are more than a dozen major commercial banks in Britain, including Lloyds TSB, Barclays, National Westminster, and HSBC. The postal system, savings banks, and cooperative and building societies also provide some banking services.

Historically, the financial services industry has been based in the City of London in an area called the Square Mile. The City is a small part of the Greater London metropolitan area that surrounds it. Financial services are still concentrated in the City, although several provincial cities have developed their own financial centers. The City has the greatest concentration of foreign banks in the world and one of the world’s largest insurance markets. It is also the world’s main center for trading in stock of overseas companies. One of the world’s largest financial derivatives markets is in the City, as well. Financial derivatives are contracts to buy or sell, at a future date, financial documents such as stocks and bonds.

The London Stock Exchange, one of the largest exchanges in the world, has always been a focus of international trade. In 1986 it was substantially deregulated, an event known as the Big Bang in financial circles. This led to the rapid expansion of products, markets, and numbers of employees, a movement that slowed in the early 1990s but has since rebounded.

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Currency

The pound sterling (£1), consisting of 100 pence, is the basic unit of currency in Britain (£0.50 equal U.S.$1; 1996 average). Before Britain converted its currency to the decimal system between 1968 and 1971, the pound equaled 20 shillings and each shilling was made up of 12 pence. Bookkeeping had to be done using three columns and the decimal system could not be applied.

The European Union established the euro as its unit of currency, and other EU members made the transition to the euro between 1999 and 2002. However, the British government elected not to do so and instead retained the pound as its currency.