Even as growth has resumed in the United States and the euro zone starting in third quarter 2009, the United Kingdom is still in recession. Contrary to what was seen in past cyclical swings, the UK services sector has been a major contributor to the current crisis. The difference this time is due to the nature of the crisis itself as well as to far-reaching changes in the British economy in recent decades1. In twenty years, with the liberalisation of markets and the consequent growth of financial activity, services have increased markedly as a proportion of economy-wide value added. They now contribute nearly 80% of the total, compared with less than 70% in 1990.

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