Changing UK economy

• UK economy


  Used to be based on manufacturing, now tertiary and quaternary industries have grown
• In 2017, 4 million people were employed in services, 670,000 in information technology and finance
• In 2016, £33 billion was spent in the UK on quaternary industries
• Quaternary industries


  • Increasingly found in science or business parks
  • High demand for high-tech products
  • UK has many respected research universities for businesses to form links with
• De-industrialization


  UK's industrial base declined due to increased automation and competition from other industrialized countries
• Globalization


  Manufacturing has moved overseas where labor costs are lower
• Government policies


  • Decisions on investment and support for business affect the economy
  • In the 1980s, government-owned manufacturing industries were privatized leading to job losses
• Industry has negative effects

  Pollution, greenhouse gases, high water and energy use
• Modern industrial developments


  More environmentally sustainable
• Improvements to the transport network

  1. Improving capacity on motorways to smart motorways

  2. Crossrail project to increase rail capacity in Central London by 10%

  3. New runways in the Southeast

  4. New ports like London Gateway
• Links to other countries

  • Trade globally, overseas exports of £160 billion per year
  • Cultural exports like 'Shaun the Sheep' shown in 170 countries
  • Channel Tunnel linking UK to France
  • Telecommunications like internet and transatlantic cables
  • European Union (not relevant as UK left in 2020)
  • Commonwealth of 54 states
• North-south divide


  • Decline of heavy industries had mostly negative impact on the North
  • Growth of post-industrial service sector mostly benefited the South
  • Wages, health, and education generally better in the South
• Government resolving regional differences

  1. Devolving more powers to local councils

  2. Creating enterprise zones with reduced taxes and improved infrastructure

  3. Northern Powerhouse plan to attract investment and improve transport links in the North

  4. Spending £70 million to improve Northern schools