For most of the 19th and 20th centuries, coal was England’s richest natural resource, meeting most of the nation’s requirement for energy. However, international competition, rising domestic costs, the growth of cheaper domestic alternatives (such as natural gas), and mounting environmental concerns combined to cripple the coal industry in the 1980s and ’90s. Coal production is now only one-fifth of its mid-20th-century level. New technologies and the discovery of huge reserves of petroleum and natural gas in the North Sea have further transformed the pattern of energy production. Natural gas supplies the largest proportion of England’s energy needs, followed by oil, coal, and nuclear power.

Manufacturing

Sand, gravel, and crushed rock are widely available and provide raw materials for the construction industry. Clay and salt are found in northwestern England, and kaolin (china clay) is available in Cornwall.

About one-fifth of England’s workers are employed in manufacturing. Major industries located in the northern counties include food processing, brewing, and the manufacture of chemicals, textiles, computers, automobiles, aircraft, clothing, glass, and paper and paper products. Leading industries in southeastern England are pharmaceuticals, computers, microelectronics, aircraft parts, and automobiles.

Finance

Financial services are central to England’s economy, especially in London and the South East. A major world centre for finance, banking, and insurance, London—especially the City of London—hosts such centuries-old bodies as the Bank of England (1694), Lloyd’s (1688), and the London Stock Exchange (1773), as well as more recent arrivals. Although London dominates the sector, financial services are also important in other cities, such as Leeds, Liverpool, and Manchester.

Services

Service activities account for more than two-thirds of employment in England, largely because of the primacy of London and the importance of the financial services sector. As the national capital and a prominent cultural mecca, London also provides a vast number of jobs in government and education, as well as at its many cultural institutions. The cities of Cambridge, Ipswich, and Norwich are important service and high-technology centres, as is the “M4 corridor”—a series of towns, such as Reading and Swindon, near the M4 motorway between London and South Wales. Retailing is strong throughout the country, from ubiquitous local supermarkets to the exclusive boutiques of Mayfair in London’s West End.

Tourism also plays a significant role in England’s economy. The country’s attractions appeal to a wide variety of interests, ranging from its rich architecture, archaeology, arts, and culture to its horticulture and scenic landscape. A large number of England’s domestic vacationers opt for seaside spots such as Blackpool, Bournemouth, and Great Yarmouth. The southwestern counties, with their extensive coastline and national parks, also attract a large number of tourists. However, the seasonal and low-paid nature of many service and tourist-related jobs has kept the average income lower in the southwest than in most other parts of England. Millions of British and international tourists annually visit London attractions such as the British Museum, the National Gallery, Westminster Abbey, Saint Paul’s Cathedral, and the Tower of London; still others travel beyond the capital to take in Canterbury Cathedral and York Minster.

Transportation

England is well served by roads, railways, ports, and airports. During the 1980s and ’90s Britain’s trade with Europe increased sharply, and the ports in southern and southeastern England now handle significantly higher traffic than the ports of Liverpool and Manchester. Leading ports for container traffic are Felixstowe, Tilbury, Thamesport (Medway), Liverpool, and Southampton. Dover, Grimsby, and Harwich chiefly handle roll-on traffic. Major airports in and around London are Heathrow, Gatwick, and Stansted, which together serve more than 40 million passengers annually. Airports at Birmingham, Manchester, Newcastle upon Tyne, and Luton also handle significant amounts of traffic. The feasibility of a tunnel under the English Channel between England and France was first explored in the late 19th century. After lengthy debate and numerous delays, the Channel Tunnel rail link opened in 1994 between Folkestone in Kent and the French town of Sangatte near Calais.

Highways radiate from London in all directions, and the increase in traffic is visible in the congested highways. London, other large cities, and towns are linked by an efficient network of trains. Several high-speed freight trains serve the major industrial centres. London’s Underground train system, the “Tube,” covers some 250 route miles (400 km). Inland waterways were developed during the 17th and 18th centuries, mainly to carry bulky raw materials such as coal, iron ore, and limestone between the industrial centres of Manchester, Leeds, Sheffield, Kingston upon Hull, Birmingham, and London. By the end of the 18th century, a “cross” system of canals connected the Thames, Humber, Mersey, and Severn estuaries. Most canals are now in disuse.

For further discussion of the economy of England, see the economy sections of the article United Kingdom.