UK gcse - created from Mind Map

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Causes of economic Change in the Uk

HS2

Science Park Cambridge

The North-South Divide

Trade

The UK is experiencing a period of economic change. This is happening as a result of several factors, including globalisation, government policies and deindustrialisation.

Globalisation: Globalisation describes the way in which the world has become more interconnected. Globalisation has led to an increase in world trade, foreign investment, communication between different countries and the sharing of ideas.

Goverment Policies

Deindustrialisation

In the past, the UK economy was based on activities that took place within the country and within Commonwealth countries. The growth of globalisation has meant that the UK economy is now more dependent on other countries. An example of this is the manufacturing industry. In the 1900s, 55% of the UK population worked in secondary jobs. The 2011 census showed that this figure had dropped to just 9%. Globalisation has allowed people to connect with other countries - it is possible to send orders abroad, locate factories abroad and get products shipped in to UK ports.

The government manages the UK economy through the Treasury. Each year a budget is produced, which sets out things such as the minimum wage, spending on public services and levels of tax.

During the 1980s the UK was performing better than most other European countries. Several things helped this growth: Many state-owned businesses in the UK were privatised, eg British Telecom and British Gas. They had been owned by the government, but they were sold to individuals or other companies. This made a lot of money for the government. Markets were deregulated. This means that the government became less involved in running things and some companies had to find better ways to make a profit.

The UK has experienced deindustrialisation. There has been a decrease in the amount of manufacturing taking place in the country and a growth in the tertiary and quaternary sectors. Traditional industries, such as ship building and textiles, have declined

This has happened for two main reasons: A global shift in manufacturing to new emerging economies(NEEs), where wages are lower, working hours are longer and trade unions are sometimes banned. An increase in the number of machines used to carry out work. This is called mechanisation.

HS2 is a major transport project designed to improve rail journeys in the UK and is split into 2 stages; • The first phase between London and Birmingham will open in 2026. • The second phase involves adding a V shaped section, with separate lines going from Birmingham to Manchester and Leeds.

Arguments for

Arguments against

It will help bridge the north-south divide

The rail link could act as a way of growing industries in the North. The government expects 70% of jobs created to be outside London.

The final bill could be very expensive: The UK Government normally invests £50bn a year in projects like this. This project is spread over 20 years so equates to just 10 months of that budget.

It will help boost the UK economy

HS2 is expected to generate 22,000 construction jobs in the next five years and once the entire line is running create 100,000 jobs. It should also increase the UK’s GDP by £15bn a year - an increase of 0.8%. Better transport connections like HS2 mean reduced production and transport costs, higher productivity and greater competition between UK regions.

It will help bridge the north-south divideSome professors say that similar projects in France, Spain and South Korea show that it is capitals that benefit from these projects by sucking more wealth to the centre, in this case, London.

The final bill could be very expensive

It will help boost the UK economy

The original price for HS2 was £32.7bn but the government added a further £10bn to a maximum of £42.6bn. Rolling stock (the trains etc.) is expected to cost another £7.5bn.

The HS2 Action Alliance, which campaigns against the project, says there is no independent research backing up the £15bn figure. The money could be used to boost businesses in other ways.

The Cambridge Science Park was founded by Trinity College in 1970 and is the oldest science park in the UK. It is a concentration of science and technology related businesses and has strong links with the nearby University of Cambridge. Many businesses are in Biotech or technology.

t has many site factors and advantages; The site has its own fitness club and gym It has the benefit of fibre optic broadband systems in operation There is an onsite nursery Recycling - recycling facilities are available * Plastic bottles * Clean glass (no lab glass)* Aluminium drinks cans * Clean office paper and newspaper * A skip for clean cardboard The park has low density of buildings. The landscaping design was to create a peaceful and serene environment in accord with a location whose ideal is the pursuit of scientific research and development. Efforts made to conceal car parks behind trees and shrubs. The 152 acre site benefits from 20 acres of park style landscaping which provides a central area of lakes, natural habitat, mature trees, shrubs and extensive grassed areas. No building is permitted in this protected area.

The north Ecocomic Activity - Heavily dependent on the public sector

The south Economic activity - private sector dominant

The north incomes - Lower income, eg in 2018 the average household gross disposable was £16,995 in the NE region. Benefits make up higher proportion of incomes

The south incomes - Higher incomes, eg in 2018 the average household gross disposable income was £29,362 in London

Unemployment in the north - Higher unemployment, eg Jan 2020 - NE regions = 6.6%

Education in the north - Pupils from the north are less likely to achieve straight A grades at A levels, and are less likely to go on to study at Oxford etc

The South unemployment - Lower unemployment, e.g SE region = 3.3%

The south education - Pupils in the south are 40% more likely to achieve top GCSE grades

The UK trades all over the world, but mainly with other EU countries. Outside the EU, its main trading partner is the USA. Inside the EU, it’s Germany. Many British companies are transnational corporations (TNCs) with branches all over the world, e.g. Shell, Vodaphone, and Barclays Bank. Many TNCs from other countries have set up branches in the UK, like Sony, Coca-Cola, Nike, and MacDonald’s.