Norway (and other Scandinavian ones) has the best, although I'm a bit biased. Lots of trolls and stuff.

Germany also ranks highly - the Brothers Grimm, and all that. Again, I have a bias there.

Hans Christian Anderson (Danish) was also very good.

I can't really remember very many english/british folk tales. Alice in Wonderland is probably the best known English one of the genre, although it may be too modern for some folks to stick it in as a fairy tale. Dick Whittington, Xmas Carol, The Gingerbread Man, Goldilocks, Jack & The beanstalk, Peter Pan, £ Little Pigs are others.