14.4 Regional inequality in the UK case study

Question 1

background on inequality within the UK

Answer 1

North-South divide:
- industrial revolution: Northern England thrived due to manufacturing/heavy industries, e.g cotton manufacturing in Manchester
- Southern England remained largely agricultural but started transition to finance/services in London
- deindustrialisation in 1970s to 1980s: severely hit the North as factories closed, shipbuilding decline and coal mine shutdown = long term economic depression
- early 21st century: London’s economy grew rapidly due to globalisation whereas northern cities: chronic development

Question 2

causes of regional disparities in the UK

Answer 2

1. Historical:
   - deindustrialisation, early industrial focus in the North
   - 1971-1981 Liverpool lost 30% of manufacturing jobs
2. Economic:
   - investment concentration, e.g Canary Wharf in london,
   - wage gaps: productivity over 30% higher in London - average weekly earnings £200 higher
3. Political:
   - centralised governance, inconsistent policies - funding bias towards london: e.g Crossrail funding vs delays to Northern Powerhouse Rail/HS2
4. Social:
   - education gaps: 25% disadvantaged pupils in NE achieve strong GCSEs compared to 40+ London
   - brain drain: top unis in london: LSE
   - health: life expectancy: up to 84 in London but only 74 in Blackpool for males
5. Physical:
   - remoteness/location: proximity to Europe and transport links
   - dependence on resources/exhaustion, e.g coal

Question 3

northern powerhouse strategy

Answer 3

The Northern Powerhouse initiative (2014 - Present:
- aimed to boost grown in North, improve connectivity between Northern cities

Question 4

Infrastructure investment in northern powerhouse strategy

Answer 4

1. HS2: fast rail Line from London to Manchester: 98 billion investment, but heavy delays, well over budget and cancelled 2nd phase between birmingham and manchester
2. Northern Powerhouse Rail (NPR): ‘cross rail for the north’: cut journey times - manchester to leeds 30 mins not 1 hour
3. M62 motorway upgrade: expanded between Liverpool, Manchester and Leeds to ease East-West freight traffic: 400 million

Question 5

Enterprise and innovation in northern powerhouse strategy

Answer 5

• enterprise zones: Teeside, Manchester Airport City
• Business rate relief and tax incentives to attract investment.
• New universities collaboration: N8 Research Partnership among major Northern universities.
• MediaCityUK (Salford Quays):
• BBC, ITV regional hubs.
• Tech and digital startups (one of the largest tech clusters outside London).

Question 6

cultural investment as part of northern powerhouse strategy

Answer 6

• £110m investment into The Factory, a new multi-purpose arts venue in Manchester.
• Investment into cultural festivals (e.g., Great Exhibition of the North, 2018 in Newcastle/Gateshead).

Question 7

devolution of powers as part of Northern Powerhouse strategy

Answer 7

• refers to giving more power to local councils/regional areas rather than government to help reduce bias
• Manchester: 30 million/year for 30 years: transport - expansion of metrolink

Question 8

what was the Levelling Up Agenda

Answer 8

2019 -
- under Boris Johnson, aims to reduce inequality between rick/poor parts:
- Levelling Up Fund: £4.8 billion allocated to infrastructure and cultural projects across UK regions.
- UK Shared Prosperity Fund: Designed to replace EU structural funding post-Brexit, aimed at skills, local business, and community improvement.
- Town Deals & Freeports: Investment in specific areas to stimulate growth and attract business.
- e.g Barrow-in-Furness Blackpool £25m town deal for waterfront regeneration, new business space and better connectivity

Question 9

what are the Freeports policy

Answer 9

2021 -
- special low tax zones to boost manufacturing, shipping and logistics
- e.g Teesside Freeport in Tees valley, East Midlands Freeport in Nottingham

Question 10

enterprise zones

Answer 10

• 2012-2020
• business tax discounts, superfast broadband and simplified planning process
• e.g Humber enterprise zone boosted offshore wind industry - Siemens Gamesa built 160 million wind turbine factory

Question 11

what are the initiatives to reduce regional disparities in the UK

Answer 11

1. Northern Powerhouse Strategy
2. levelling up
3. freeports policy
4. enterprise zones

Question 12

difficulties in overcoming regional disparities in the UK

Answer 12

1. Historical Industrial Decline
   - Deindustrialisation hit North East, Wales (e.g., Middlesbrough steelworks closure).
   - London shifted to services → widened gap and has continued to widen.
2. Poor Transport Links
   - Leeds = largest European city without a metro.
   - Manchester–Leeds train slower than London–Birmingham.
3. Underinvestment
   - Transport spending: £864/person in London vs £349/person - over double in North East (2020).
   - Northern councils (e.g., Hull) lost 30%+ budgets post-2010 austerity.
4. Skills Gaps and Brain Drain
   - 38% of Northern graduates move to London within 5 years.
   - Lower qualifications limit new industries’ growth.
5. Devolution Gaps
   - Greater Manchester: strong devolution (Andy Burnham - strong leader in the area).
   - Yorkshire struggled to secure consistent devolution deal = lack of initial investment.
6. Political Instability
   - Northern Powerhouse momentum lost after 2016 due to new **‘levelling up’.
   - HS2 Northern leg cancelled 2023, undermining transport promises.
7. Weak Private Sector Investment
   - Cambridge’s tech sector (“Silicon Fen”) boomed; Liverpool’s tech growth slower.

Question 13

Evaluate attempted solutions to UK Regional Disparities

Answer 13

1. Transport Improvements (Mixed Success)
   - Transpennine Route Upgrade (Manchester–Leeds) ongoing → faster trains.
   - ❌ Northern Powerhouse Rail cut back (Leeds missed HS2 link 2023).
2. Devolution Deals (Uneven)
   - Greater Manchester (Andy Burnham) success: Bee Network for buses, devolved NHS spending.
   - ❌ Yorkshire’s devolution delayed — missed early investment.
3. Investment in Innovation (Partial Success)
   - Manchester’s digital economy grew (£5 billion, 2023).
   -❌ Smaller towns (e.g., Blackburn, Middlesbrough) missed out.
4. Freeports and Enterprise Zones (Some Positives)
   - Teesside Freeport attracted investment (hydrogen, offshore wind).
   -❌ Risks: may just shift jobs, not create many new ones.
5. Skills and Education Programmes (Limited Impact)
   - University clusters (N8 Research Partnership) boosted research.
   - ❌ Brain drain persists — 38% of Northern graduates move south.
6. Funding Levels (Criticised)
   - Northern Powerhouse Investment Fund (£500m) helped SMEs.
   - ❌ Overall funding too small compared to needs — public sector cuts continued.

Overall: improved key cities (Manchester and Leeds) but left towns/rural areas behind: resulted in more local disparities?

Question 14

challenges for governments applying regional development policy in a globalised world

Answer 14

1. Global Competition for FDI:
   - TNCs prefer big, profitable cities.
   - Hard for governments to direct investment into poorer regions.
   ➔ E.g., Nissan Sunderland success rare today.
2. NIDL and Offshoring
   - Manufacturing jobs moved to low-wage countries.
   - Hard to rebuild old industrial economies.
   ➔ E.g., Steel jobs lost in Scunthorpe.
3. Power of TNCs over Governments
   - TNCs demand tax breaks and incentives.
   - Risks of short-term, low-quality jobs.
   ➔ E.g., Amazon warehouses = insecure jobs.
4. Trade Barriers (Post-Brexit)
   - Loss of EU Single Market access.
   - Harder to attract TNCs needing European markets.
   ➔ E.g., Honda factory closure in Swindon.
5. Global Cities’ Dominance
   - London naturally attracts finance, tech, skilled workers.