England's economy is the among the largest in in the world, it has an average GDP per capita of £22,907. Usually regarded as a mixed market economy, although it takes on many free market principles compared to the Rhine Capitalism of Europe, England has an advanced social welfare infrastructure. The official currency in England is the pound sterling also known as the GBP. Taxation in England is quite competitive when compared to much of Europe—the basic rate is 20% on taxable income up to £37,400, taxable income over that stands at 40%.[82] The economy of England is the largest part of the British economy; combined with the other countries of the United Kingdom has the 18th highest GDP PPP per capita in the world. One of the world's most industrialised countries, England is a leader in the chemical and pharmaceutical sectors and in key technical industries, particularly aerospace, the arms industry and the manufacturing side of the software industry. At the centre of the financial economy is London which is home to the London Stock Exchange, the main stock exchange in the United Kingdom and the largest in Europe—one hundred of Europe's five hundred largest corporations are based in London.[83] London is the largest financial centre in Europe and currently the largest in the world.[84]
The Bank of England created in 1694 by Scottish banker William Paterson is the central bank of the United Kingdom. Originally created to act as private banker to the Government of England, it carried on in this role as part of the United Kingdom—since 1946 it has been a state-owned institution.[85] The Bank has a monopoly on the issue of banknotes in England and Wales, although not in other parts of the United Kingdom. Its Monetary Policy Committee has devolved responsibility for managing the monetary policy of the country and setting interest rates.[86] England is highly industrialised, but since the 1970s there has been a decline in traditional heavy and manufacturing industries, towards a more service industry dominated economy. Tourism is a significant industry attracting millions of tourists each year. The export part of the economy is dominated by pharmaceuticals, automobiles—though many English created manufacturers are now foreign owned, such as Rolls-Royce, Lotus, Jaguar and Bentley which have headquarters in England, while Aston Martin remains English owned—crude oil and petroleum from the English parts of North Sea Oil along with Wytch Farm, aircraft engines and alcoholic beverages.[87] While agriculture is intensive and highly mechanised, producing 60% of food needs with only 2% of the labour force. Two thirds of production is devoted to livestock, the other to arable crops.
