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• The UK economy is undergoing many changes. As the UK approaches a post-industrial era, the country is looking to be economically and environmentally sustainable, with greater links to the wider world.
• North/south divide in the UK

  There is a wealth divide, with those living in the north experiencing lower incomes, higher unemployment and a lower standard of living than those in the south
• For every 12 jobs created since 2004 in southern cities, only one was created in cities elsewhere
• Cities like London and Milton Keynes in the south have seen a large growth in the number of jobs available, whilst Blackpool and Hull in the north have seen a large decline
• Devolution


  Giving powers to regional governments
• The government have agreed devolution measures, which gives additional power and money to councils in the north
• The election of the Mayor for Greater Manchester has been given £1 billion of devolved funds to spend on improving the city and attracting new businesses
• The popularity of universities such as Manchester and Leeds have encouraged professionals to settle in the north
• The relocation of some businesses and organisations, such as the BBC moving to MediaCityUK in Salford, has led to a multiplier effect with other companies locating close by
• Resolving regional differences is a difficult task
• The UK economy is undergoing many changes
• The UK is approaching a post-industrial era
• The UK is looking to be economically and environmentally sustainable, with greater links to the wider world
• Causes of economic change in the UK

  • Globalisation
  • Government policies
  • Deindustrialisation
• Globalisation


  The way in which the world has become more interconnected. It refers to how people communicate as well as world trade, international investment and the sharing of ideas.
• Globalisation has led to

  • Increase in world trade
  • Foreign investment
  • Communication between different countries
  • Sharing of ideas
• In the past, the UK economy was based on activities that took place within the country and within Commonwealth countries
• Growth of globalisation


  UK economy is now more dependent on other countries
• Example of globalisation impact

  • Manufacturing industry - in the 1900s, 55% of the UK population worked in secondary jobs, in recent years this figure had dropped around 15%
• Globalisation has allowed people to connect with other countries - it is possible to send orders abroad, locate factories abroad and get products shipped in to UK ports
• Government policies


  The government manages the UK economy through the Treasury. Each year a budget is produced, which sets out things such as the minimum wage, spending on public services and levels of tax.
• During the 1980s the UK was performing better than most other European countries
• Things that helped UK growth in the 1980s

  • Privatisation of state-owned businesses
  • Deregulation of markets
  • Closure of factories and coal pits
  • Growth of the service sector
  • Low taxes
• Global financial crisis in 2008

  UK entered a period of recession
• Many of the UK's banks were helped out using government money, which was very expensive for the country and the level of national debt grew
• In 2010, a programme of austerity was put in place. The government made spending cuts to save money and carried out quantitative easing, which involved creating more money
• Things steadily improved until the Covid 19 pandemic hit the country in 2020. The UK's GDP declined by 9.7% in 2020, which was the steepest drop since records began in 1948
• Deindustrialisation


  The decline of manufacturing within a country
• There has been a decrease in the amount of manufacturing taking place in the country and a growth in the tertiary and quaternary sectors
• Reasons for deindustrialisation


  • Global shift in manufacturing to new emerging economies where wages are lower, working hours are longer and trade unions are sometimes banned
  • Increase in the number of machines used to carry out work (mechanisation)
• The UK economy is undergoing many changes as the UK approaches a post-industrial era, looking to be economically and environmentally sustainable, with greater links to the wider world
• Post-industrial era


  • Traditional industries have declined and new jobs have had to take their place
• IT industry in the UK

  • Estimated $942 billion a year
  • Over 150,000 software companies operate in the UK, e.g. Microsoft and IBM
  • UK has the largest mobile device market in Europe, worth an estimated £12.8 billion a year
  • Cloud-based storage systems are a fast growing part of the UK economy
  • UK's cybersecurity market has grown due to increased threats, worth about £8.3 billion a year
• The service sector makes up about 80% of the UK's economy
• Services in the UK

  • Can include healthcare, IT support, entertainment
  • UK exports services like tourism and education
• The UK is the second largest exporter of services globally
• Financial jobs in the UK

  • Accountancy
  • Working in banks and building societies
  • Financial planning
  • Insurance
  • Investments
  • Pensions
• Large financial employers in the UK include Barclays, Aviva and KPMG
• Science and research in the UK

  • Important for the UK's growth as they help discover new ways for the country to move forward in a sustainable way
  • Takes place through government research councils, higher education, and other organisations
• Science and business parks in the UK

  • Special places for company offices, often found on the edge of cities with good accessibility
  • Located close to universities to attract graduates
  • Designed to be pleasant environments for people to work in, often low-rise with plenty of parking and green spaces
  • Help IT, service, finance and research businesses to work together