changing UK economy

What did the UK economy like before the industrial revolution?

The economy was based on the primary sector - most people were farmers or worked in mining.

What did the UK economy like during the industrial revolution?

The primary sector was declining as the economy became based on the secondary sector - people began to work in manufacturing, producing things like steel, ships and textiles.

What does the UK economy like now?

The economy is based on the tertiary sector - services like health care, finance and retail.

However, the quaternary sector, involving IT, research and the media, is growing.

What factors have caused the UK economy to change in the past century?

• De-industrialisation and the decline of traditional industries

• Globalisation

• Government policies

Why has de-industrialisation occurred to the UK economy?

• Increased automation in industry replacing people + leading to job losses

• Other industrialised countries can produce goods for cheaper due to lower labour costs, competition forcing some UK manufacturing industries to close

• Lack of investment, high labour costs and outdated machinery made UK products too expensive

How have de-industrialisation and the decline of traditional industries caused the UK economy to change?

They have caused the subsequent growth in the tertiary and quaternary sectors.

What is globalisation?

The growth and spread of ideas around the world, made possible by modern advancements in transport, technology and communications.

How has globalisation caused the UK economy to change?

• A lot of manufacturing industries have moved overseas where labour is cheaper due to increased world trade, causing a decline in the manufacturing sector

• Foreign companies invest in the UK, moving their tertiary and quaternary operations here

What have been some government policies over the past decades that have influenced UK’s economic change?

1980-2010 → privatisation of state-owned industries and urban regeneration

2010 onwards → investment in high-tech manufacturing, deregulation and trade agreements

How have government policies since 1980 caused the UK economy to change?

Privatisation → led to major job losses and the general decline of the manufacturing sector

Urban regeneration → transformed former industrial areas into financial centres

Both of these factors caused the UK economy to shift towards the tertiary sector.

How have government policies since 2010 caused the UK economy to change?

Investment in high-tech manufacturing → investing in industries like aerospace to create skilled jobs in the manufacturing and quaternary sectors

Deregulation → encouraging global firms to locate to the UK by removing restrictions + taxes on businesses to help grow tertiary + quaternary industries

Support for businesses → accessing loans and finance made easier

What is a post-industrial economy?

An economy where the declining manufacturing sector is replaced by a growth in the service sector and development of the quaternary sector.

EX: UK

What main factor explains the UK’s movement to a post-industrial economy?

The development of information technology.

How have developments in IT affected the UK’s economy?

What is the service sector?

The sector that produces services rather than products.

How has the service sector developed?

It is the largest sector in the UK economy, contributing over 79% of UK economic output.

How has the finance sector developed?

Being an important part of the service sector, it has grown alongside it, with the UK being the world’s leading centre for financial services. It accounts for 10% of the country’s GDP and employs 20 million people.

How has the research sector developed?

It employs over 100,000 highly-qualified people and contributes over £13 billion to the UK economy. It is projected to be one of the UK economy’s main growth areas in the future.

EX: British Antarctic Survey employs over 500 highly-qualified people based in Cambridge, Antarctica and the Arctic.

What is a science park?

A group of scientific and technical-knowledge based businesses on a single site that often work in association with universities.

EX: University of Southhampton Science Park

What are the benefits of science parks?

• Provision of research facilities

• Source of graduate employees from university

• Support facilities + recreational opportunities

• Good transport links

What is a business park?

An area of land occupied by a cluster of businesses, often on urban fringes where land is cheaper and there is less congestion.

EX: Cobalt Business Park, Newcastle-Upon-Tyne

What are the benefits of business parks?

• Collaboration between businesses

• Support facilities + recreational opportunities

• Good transport links

What are the impacts of industry on the physical environment?

• Manufacturing plants are often dull-looking, acting as a visual pollutant

• Industrial processes can cause air and water pollution, and soil degradation

• Waste products are often taken to landfill where they cause air, water and soil pollution

• The transport of raw materials and manufactured products increases levels of air pollution

What is Torr Quarry?

It is a limestone quarry located on the Mendip Hills in Somerset.

How does Torr Quarry aim to be more environmentally sustainable?

What is an example of a rural area experiencing population growth?

South Cambridgeshire.

Why is the population of South Cambridgeshire growing?

People from Cambridge, other parts of the UK and Eastern European migrants are moving into the area.

What are the social impacts of population growth in South Cambridgeshire?

• Increased traffic congestion with 80% of residents now owning cars

• Modern developments can lead to a breakdown in community spirit

• Young people unable to afford the high cost of housing + so they move away

What are the economic impacts of population growth in South Cambridgeshire?

• Lack of affordable housing because of increase in demand

• Pressure on services due to increasing number of migrants from relatively poor parts of Europe, increasing overall costs

• Reduction in agricultural employment as farmers sell their land for housing development

What is an example of a rural area experiencing population decline?

The Outer Hebrides

Why is the population of the Outer Hebrides declining?

Younger people are moving away from the area due to the limited employment opportunities.

What are the social impacts of population growth in the Outer Hebrides?

• There are not enough people to support local services, so some may have to close

  • e.g. the number of school children is expected to fall, resulting in school closures

• An increasingly ageing population with fewer young people to support them may lead to care issues in the future

What are the economic impacts of population growth in the Outer Hebrides?

• Existing infrastructure is unable to support the scale of tourism needed to provide an alternative source of income

• The number of fishing boats has significantly decreased over the past century

• Most crofts (small farms where sheep are bred) can only provide work for 2 days a week

How is the road network being improved?

• Road Investment Strategy

• South-west ‘super highway’

What is the Road Investment Strategy?

A £15 billion announced by the government in 2014 that aims to increase the capacity and improve the conditions of UK roads.

What is the South-west ‘super highway’?

A £2 billion road-widening project on the A303 that will convert the route to a dual-carriageway and aims to reduce congestion

How is the rail network being improved?

• The Trans-Pennine Route Upgrade

• HS2

• Crossrail

What is the The Trans-Pennine Route Upgrade?

A project that aims to improve the rail network between Manchester, Leeds and York by:

• electrifying parts of the railway

• using new signalling

• improving stations

in order to improve capacity and journey times.

What is HS2?

A £50 billion plan for a new high-speed rail line to connect London with Birmingham and then to Sheffield, Leeds and Manchester that aims to:

• cut travel times between London and Birmingham

• improve regional links

which will help to support economic growth in the Midlands.

What is Crossrail?

A new railway across the capital that links the west of London (Reading, Heathrow) to the east (Abbey Wood).

How are ports being improved?

• Liverpool2

• London Gateway

What is Liverpool2?

A £300 million scheme to construct a new container terminal at the Port of Liverpool which will double the port’s capacity to over 1.5 million crates a year.

What is London Gateway?

A £1.5 billion project to construct a port terminal in Thurrock, Essex that was completed and opened in 2013. It can handle the largest container ships and offers direct links to global markets via the Thames.

How are airports being improved?

There is a proposal to build a third runway at Heathrow, a major airport, which will reduce congestion and increase capacity.

What is the north-south divide?

The observed cultural, social and economic differences between the south of England and the north of England + the rest of the UK.

Why does the north-south divide exist?

Due to the decline in industry in the north and fast growth of the service sector in the south.

What strategies are being used to help resolve the north-south divide?

• Devolution of more powers

• Local Enterprise Partnerships (LEPs)

• Enterprise zones

• The Northern Powerhouse

How can devolving more powers help resolve the north-south divide?

Scotland, Wales and Northern Ireland have their own devolved governments and some English councils have their own elected mayors.

By giving these regions greater local control over budgets, they can choose to use the money in a way that will benefit the community the most - e.g. better public transport.

How can LEPs help resolve the north-south divide?

These a voluntary partnerships between authorities and businesses.

They encourage companies to invest in the local area and help create new jobs by supporting local businesses.

How can creating enterprise zones help resolve the north-south divide?

These designated areas offer tax breaks, simpler planning and financial benefits to encourage businesses to start-up and expand here, creating new jobs and income.

How can the Northern Powerhouse help resolve the north-south divide?

A plan to reduce the inequality between the north and south by attracting investment into the north and improving transport links between northern cities - e.g. HS2.

What kind of links does the UK have with the wider world?

• Trade

• Culture

• Transport

• Electronic communication

What trade links does the UK have with the wider world?

The UK’s largest trading partner is the EU, however it also has strong trading links with the USA and growing links with China + the Asia-Pacific.

What cultural links does the UK have with the wider world?

The UK’s strong creative industries and the global importance of the English language means that UK culture is exported worldwide like TV series such as Dr Who and Peppa Pig.

Migrants have also helps diversify the UK’s culture in food, art, music e.t.c.

What transport links does the UK have with the wider world?

London Heathrow acts as an international hub, linking the UK to the rest of the world through flights.

The Channel Tunnel links the UK to France, providing a route to mainland Europe.

What electronic communication links does the UK have with the wider world?

Extensive broadband and mobile coverage, and numerous undersea cables (e.g. Trans-Atlantic cables linking Europe to the USA are routed via the UK) strengthen the UK’s oversea links by providing fast communication with trading partners worldwide.

What economic and political links does the UK have?

• European Union (EU)

• Commonwealth

What economic and political links does the UK have with the EU?

The UK used to be a member of the EU, which strengthens links between its members by allowing goods, capital and labour to move freely between states, encouraging trade.

What economic and political links does the UK have with the Commonwealth?

The UK is a member of the Commonwealth, which is an association of 56 countries, most of which were British colonies.

It encourages co-operation between members through trade, sport (Commonwealth Games) and aid from the Commonwealth Secretariat.