Economic Development in the UK

• the uk was once based on manufacturing but since the 1960s it has declined and tertiary/quaternary industries have grown (in 2017 83% of people were employed in tertiary/quaternary industries)
• service, finance, information technology and research are important tertiary and quaternary industries
• business/science parks are found on the outskirts of cities (near transport and housing) and they're near universities
• science/business parks have grown because:

  • large demand for high tech products
  • the uk has a high number of respected research universities for science/business parks to link with
• economic change is because of:

  1. de-industrialisation
  2. globalisation
  3. government policies
• de-industrialisation has happened due to the increased use of machines (leading to job loses). as other countries industrialised they could produce goods more cheaply than the UK - forced them to close
• lots of manufacturing industries have moved over seas where labour costs are lower (M&S), however, some TNCs have moved their tertiary/quaternary operations to the UK
• foreign trade is very important for the UKs GDP as 62% (in 2017) of the UK's GDP came from foreign trade
• several key manufacturing industries had been privatised by the government in 1980, this caused major job losses. since then the government carried out deregulation (removing restrictions and taxes on businesses)
• industry has negative effects on the environment:

  • factories release pollutants/green house gases and running them uses lots of energy/water
  • extracting raw materials damages the environment by destroying habitats and releasing chemicals into water sources
• the UK's improving transport network:

  • roads - capacity on motorways is being increased by upgrading to 'smart motorways' with extra lanes
  • railways - HS2 line linking london, birmingham, leeds and manchester would allow faster journeys
  • airports - a new runway is being added in the south east (third runway at heathrow)
  • ports - new port (london gateway) opened at the mouth of the river thames
• the UK trades globally and its overseas exports are worth £160 billion per year
• the UKs creative industries mean that UK culture is exported worldwide, immigration has helped shape the UKs culture
• the channel tunnel links the UK to france providing a route to mainland europe, airports like heathrow act as an international hub
• telephones and the internet make it easier for people in the UK to communicate with people in other countries (trans-atlantic cable) links europe with the USA
• the european union is an economic/political partnership of 27 countries, goods and people can move freely between countries strengthening links between members
• the commonwealth is an association of 54 states including the UK and its former colonies - promotes co-operation between member countries through trade, aid and sport
• cumbria is a rural county in north west england, south lakeland is a district in cumbria
• the population of south lakeland decreased by 0.8% from 2005-2015 with some places have a high drop, this is because of the decline in jobs (agriculture/manufacturing which are a big part of the economy)
• economic impacts of population decline:

  • businesses ate closing
  • this affects employment and the local economy
• social impacts of population decline:

  • younger people have left leaving a higher proportion on older generation
  • this puts a strain on medical services and social care
  • due to the decline schools and other services may close
• north somerset is a mainly rural area in south west england
• north somerset's population has increased by 7.8% between 2005 and 2015
• economic impacts of population growth:

  • house prices in the area rose by 6.7% in 2017-2018
  • employment and wages are above the national average
• social impacts of population growth:

  • roads are congested with commuters to bristol
  • some services are oversubscribed
  • many moving to the area are elderly which increases pressure on healthcare
• wages are lower in the north than in the south due to the north-south divide
• health is generally worse in the north than the south due to the north-south divide
• GCSE results are generally better in the south than the north due to the money/local economy of the south
• the government is trying to solve the north-south divide by:

  1. devolving more power
  2. creating enterprise zones
  3. the northern powerhouse
• scotland, wales and northern ireland have their own devolved governments and some powers are being devolved to local councils in england - allows them to use money on schemes they feel will benefit the local community (better transport, regeneration)
• companies in enterprise zones get:

  • reduced taxes
  • simpler planning rules
  • financial benefits
  • improved infrastructure

  these measures can encourage people to join
• the northern powerhouse = the government's plan to reduce the inequality between the north and south by attracting investment into the north - includes extending the coverage of superfast broadband and spending £70 million on schools
• the northern powerhouse has been criticised for being more of a concept as its not always clear how the money is going to spent - it also focuses on manchester and other big cities, not small ones in the north