1.3.4 Change and inequalities in deindustrialised urban places

Consequences of deindustrialization in urban areas

Many of the impacts of desindustrialisation in rural areas also apply to urban areas
The major impact is unemployment due to the removal of jobs
These impacts are greater when an urban areas relies on one secondary industry employer, and may be felt for many years
Example:
- In the 1980s, in Consett (NE England), 4,300 people out of a population of 30,000 were directly employed by the steelworks, with 3 times that number indirectly employed. Closer of the works pushed the male unemployment rate to almost 100% for a time

Cycle of deprivation:

Unemployment resulting from deindustrialization can create a ‘spiral of decline’ :
Old factories close→land becomes derelict→ jobs lost→ people leave the inner city→fewer services needed, shops and schools close→ more jobs lost→more people leave→people who stay are mainly elderly or low income groups→little money put into area so it becomes more run-down→more crime and vandalism→quality of life gets worse
Deindustrialisation and the spiral of decline can result in a cycle of deprivation, which impacts on people in urban areas
Poverty (low wages or unemployment)→pool living conditions→ill health→ poor education→ poor skills

Potential impacts of deindustrialization on quality of life:

Quality of life indicator	Impact of deindustrialization
Income	Lack of income due to unemployment. New jobs may be lower paid, part-time or based on zero-hour contracts
Employment	Limited job opportunities. New jobs require retraining or are unskilled
Health	Declines due to stress-related illness, and poor diet and living conditions. Reduction in atmospheric pollution improves aspects of health
Education	Access to good school may be limited; in areas with long term employment education may not be considered worthwile. Limited opportunities to learn new skills for employment
Access to housing and services	Lack of income limits access to housing, much of which is unaffordable. Positive feedback results in services closing as people cannot afford them
Crime rate	Studies show that areas with more high levels of deprivation are significantly more likely to suffer higher crime rates, including violence, especially among young people, as a way of showing status among peers
Living environment	Poverty means only the poorest-quality housing is avaliable. The poorest housing areas are frequently in areas with high traffic densities and poor air quality

Social exclusion

Excluded groups are unable to partake in activities due to cost
They cluster together in socio-economic areas in an urban area bases on affordability- spatial segregation
Non-excluded individuals move away from the area, isolating the excluded group further
Areas where excluded groups go into decline due to lack of money for maintaining or improving the area, which increases exclusion

Pollution levels

Industrial decline, especially in old traditional industries, can result in a decline in atmospheric pollution (see below). For example, when the steelworks closed in Consett, County Durham in 1980, there was a noticeable decrease in air pollution. As a result, gardeners found that pests started to damage plants for the first time

Pollutant	Decrease 1970-2016
Sulfur dioxide	97%
Nitrogen oxides	72%
Non-methane voletiile organic compounds	66%
Particulate matter	Over 70%

Deindustrialisation of old inner-city areas can result in decreases in traffic congestion, reducing pollution levels.
Modern tertiary industries require less energy usage and produce less atmospheric pollution.
A reduction in noise pollution accompanied the decrease in old manufacturing processes.
Old industrial buildings can be removed or improved, and waste tips landscaped, reducing visual pollution of the environment.

Government policies in deindustrialised places

Enterprise zones

An enterprise zone is an area where policies are used to encourage economic growth and development.
Enterprise zones were first used in the 1980s and again after 2012 as part of long-term economic plans, with favoured sites being those with little or no existing business occupancy. Benefits include:
- Business rate relief and financial benefits
- Simplified planning rules
- Infrastructure for business — superfast broadband, transport links and a location with co-businesses
There are 48 enterprise zones in England, including Birmingham and Manchester. By 2015, English enterprise zones had created 19,000 jobs and attracted 540 companies and £,2.2 billion of private investment.

Local Enterprise Partnership (LEP)

LEPs were established in England in 2011 as voluntary partnerships between local authorities and businesses to promote economic growth and job creation in local areas.
There are 38 LEPs in England, such as the CIOS (Cornwall and the Isles of Scilly) LEP, whose partnership with the European Space Agency is investing 4o.4 million of Local Growth Fund inte Goonhilly Earth Station. Ihis will Create the world's first commercial deep-space communications station, capable of tracking future missions to Mars and the Moon.
Since 2011, LEPs have supported 196,000 businesses, creating 180.600 jobs. They have established £7.6 billion of private investment, helped build 93,200 homes and supported 217,900 learners.

Retraining

Assistance is available to help with retraining and learning a new career.

Funding can be in the form of:

Grants and bursaries from an organisation
Professional and career development loans - the government pays the interest while a person studies
Advanced learner loans covering the costs of a training course
In 2018 the National Retraining Partnership between the government, CBI and TUC was set up to establish a National Retraining Scheme to tackle skills shortages in new economic growth activities.

EU Growth Programme

The European Structural and Investment Funds 2014-2020 provide investment for innovation, businesses, skills and employment. There are three types of fund:
- European Social Fund - aims to improve employment opportunities, promote social inclusion and invest in skills.
- European Regional Development Fund — supports research and innovation, small-to-medium-sized enterprises and development of a low-carbon economy.
- European Agricultural Fund for Rural Development — helps rural businesses to grow and expand.
The 'Brexit' referendum of 2016 means that these funds may cease to be available in the UK in the future.

Foreign investment by multinational corporations (MCs)