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• Lack of investment, high labour costs and outdated machinery made UK products too expensive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