It looks like there is a mistake in their algo. In Google.co.uk, the co.uk domains rank higher than .com, .net, .biz domains hosted on UK IPs.

This is unbelivable! .com, .net, .biz domains hosted on UK IPs even they are more popular like having far more inbound links, DMOZ listing etc... than .co.uk domains are not ranked properly.

Comeon Google!!!