[MoF] Understanding the UK's Financial Landscape: May 2023 Report

Day 5,666, 05:34 • Published in United Kingdom United Kingdom • by Bank of England

Introduction

As a citizen of the United Kingdom, it's important to have a clear understanding of the country's financial landscape. It's been a while since I published a report and I'm going to break from my past report style and do a little more of guide and report than one full of tables and figures.

This guide aims to break down some of the complexity and provide an overview of the UK's financial situation, including revenue sources, program costs, and other important financial indicators. By exploring these details, we can gain a clearer understanding of how our economy functions.


Revenue Sources: Funding the Nation

The UK generates revenue through various sources that support our national economy. Let's explore these sources in more detail:

Work as Manager: Income earned by UK citizens working in their own companies, which amounts to an average of £37,600 per day.

Resource Concession Fee (to the UK): The UK receives a concession fee for iron and fish resources rented to Spain, generating approximately £24,250 per day. However, it's important to note that as part of our agreements with Spain, the UK returns 85% of the Resource Concession Fees (RCFs) to Spain. This means that the income source for the UK has about £6,850 per day however is slightly increasing to £9,166 due to our new agreements.

Value Added Tax (VAT): VAT is a consumption tax levied on the sale of goods (weapons, food houses .etc), contributing an average of £5,700 per day to the UK's revenue.

Work: Income generated from taxes on the "work" activity, amounting to £4,340 per day.

Import Tax: Revenue generated from import taxes imposed on goods entering the UK, totaling £3,360 per day.

Medals: Revenue earned from medals awarded to our pilots and fighters, adding £1,300 per day to our income.

Combat Orders: Revenue generated from combat orders, which contributes £56 per day.

In addition to these sources, the UK also collects tax revenue from our TW (Training War) partners Chile, Australia, and Italy displayed on our tax revenue page. However, it's important to note that none of this tax revenue is considered income for the UK, as we return all collected tax revenue through occupation.


Resource Concession Fee Returns: UK's Commitment to Agreements

The Resource Concession Fee (RCF) is a fee collected by default game processes when resources are rented to other countries, such as Spain. However, the UK has established agreements with Spain regarding the return of a portion of these fees. Let's delve into this in more detail:

Resource Concession Fee (to the UK): The UK collects an average of £24,250 per day as a concession fee for iron and fish resources rented to Spain.

Cashback Return to Spain: As part of our agreements, the UK returns 85% of the RCFs to Spain, which amounts to approximately £17,400 per day.

UK's Retained Revenue: After returning the agreed-upon amount to Spain, the UK retains approximately £6,850 per day as income from the Resource Concession Fees.

This system ensures that both countries benefit from the resource rental arrangement while maintaining a fair and cooperative relationship. There is some additional information on RCFs important to understand in the section below too.


Additional Financial Indicators: Understanding the Numbers

To evaluate the financial health of the UK, we also need to understand some additional financial indicators alongside the revenue sources mentioned above:

Returns from Occupation: By default game processes, a proportion of UK revenue goes to our training war partners when they occupied our regions, amounting to £37,700 per day. This revenue is crucial to as it ensures the overall financial stability of the country.

Proportion of Returns for Resource Concession Fee (To reclaim): £19,300 per day, of which £2,750 is retained by the UK and as part of our agreements, the UK returns the rest of the collected RCFs to Spain.

Government Monetary Market Activity (including Government income from BoE MM Trust): This activity generates 15,000cc per day for the UK government however does vary dramatically and is heavily influenced by “power spin” events.


Program Costs: Investing in the Future

To ensure the growth and prosperity of our nation, the UK government runs several programs that require financial investments. Let's examine some key programs and their associated costs over the last 30 days:

Christmas Air & Air Cadet Programme: This program, which promotes aircraft rank growth and supports new air cadets, incurs a cost of £530,000~ over 30 day period.

British Armed Forces Q7 Weapon Rewards Scheme: The Q7 Weapon Rewards Scheme, designed to reward armed forces personnel for their service, costs £240,000~ over 30 day period.

Training War Bounties: To help our training wars stay mostly 'clean and comfortable' to rank up and farm gold is only a good thing to encourage new and older players to stay. This program incurs a cost of £450,000* over 30 day period.

*Government is still carrying out a review of missing claims for a breakdown that can be put in-front of Congress

National Giveaways: This program aims to generate community engagement and participation by organizing national giveaways on the 5th and 25th of each month. The cost of the 1st giveaway amounted to £449,396.07 and future giveaways will be reviewed to find the right balance.

BUPA: The UK government and Congress have recently invested £100,000 into BUPA, a free food distribution service in the eUK. This investment supports all players in our community.

Other Economic Support schemes for players
Training Ground Loans, which help new players to upgrade their strength buildings as it is the best way to earn income as it allows players to receive Super Soldier medals much quicker, Help to buy (Q1 houses) - New Players Only scheme and eUK Food Relocation Programme all currently have minimal average 30 costs of less than £1,000 a day currently.



Conclusion:

Understanding the intricacies of the UK's financial landscape can be complex. However, hopefully this guide has been successful in it's aim to offer citizens a clearer understanding of how the country's economy functions. The diverse revenue sources, program costs, and additional financial indicators all contribute to the UK's economic well-being. By monitoring these aspects, the UK can maintain a stable and prosperous financial future while continuing to invest in essential programs for the betterment of our player base.

A final question: Are we financially stable as a nation?

Our income is around £2.2 million every 30 days and we spend around £1.7 million every 30 days and can be projected to continue to do so, yes at the moment building upon a long period stability and growth.

However as this article concludes our financial landscape is complex to summarise, measure, track and record and we've also been increasing our costs which has been to the benefit of our citizens so we do need to keep our finances under constant review. Our Ministry of Finance does spend a significant proportion of time on this, working on and sharing reports with Congress when required.

Minster of Finance (Governor of the Bank of England) - Huey George