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Regional economic development - EduqasCase study - the North East

Economic, social, political and environmental factors can lead to inequalities in the UK and abroad. Some policies have tried to address the north/south divide in the UK and inequalities in LICs.

Part of GeographyEconomic development issues

Case study - the North East

The North East is a region that is made up of three major - Teesside, Wearside, and Tyneside. Newcastle upon Tyne is the largest city located in this region. The North East has a strong industrial history in the following sectors:

  • coal
  • steel
  • railway engineering
  • shipbuilding

Towards the end of the 20th century, the area experienced industrial decline. When there have been many job losses in an area which has undergone , (such as the North East) the government will often intervene to improve the environment and quality of life for local people.

SSI steelworks in Redcar, North Yorkshire
Image caption,
SSI steelworks in Redcar, North Yorkshire closed in 2015

Early attempts to attract industries and services to provide new employment in the region include:

  • the Team Valley industrial estate, west of Gateshead
  • New Towns at Peterlee, Newton Aycliffe and Washington
  • the transfer of the Ministry of National Insurance from London

These developments diversified industry and provided more opportunity for office and retail work. More recently, new employment has been provided by overseas companies such as LG and Nissan. Industries are attracted to the region because of:

  • the availability of a large, skilled labour force
  • two international airports
  • six major ports
  • good road and rail links to London and Europe
  • availability of both and
  • Enterprise Zone sites (offering tax breaks and government assistance to businesses)

Companies are attracted by financial assistance provided by the UK government.

  • job-creation grants
  • rate or rent-free periods
  • assistance with preparation of a site for building

To co-ordinate the attempts to attract new employment to the region and to contribute to the regeneration of the North East, the Government set up One North East as a Regional Development Agency. Its role includes:

  • boosting employment opportunities in the region
  • helping people gain and develop skills useful for work
  • cultivating an enterprise culture supporting the growth of existing small and medium enterprises
  • improving the city's environment and sustainability with sustainable transport and energy efficiency

The North East Investment Fund, totaling 拢55 million, supported projects that encouraged local economic growth and created jobs.

European Union funding

European funding came from three places:

  • European Regional Development Fund (ERDF), supports regional development across Europe.
  • European Social Fund (ESF) aims to help people improve their job prospects.
  • European Transnational Programme supports co-operation between countries.
Gateshead Millennium Bridge
Image caption,
Gateshead Millennium Bridge