1.6 North/South Divide

Question 1

Causes of deindustrialisation

Answer 1

Causes:

• Outsourcing to abroad, shift from manufacturing to service industry, decline in employment due to environment and social upheaval, less economically viable, resources depleted, cheaper elsewhere, social upheaval, fall in demand, automation
• UK import resources as cheaper than producing themselves - less environmental regulations too.

Question 2

Impacts of deindustrialisation

Answer 2

• 6.9m in manufacturing 1966 to 2.9m in 2006, increased unemployment - especially in north as main sector there - 200,000 lost in Liverpool
• Higher crime rates and divorce
• Brain drain of skilled work - tax loss, service loss, education loss
• 3,000 coalmines all shut down by 2015
• Age 41 in the NE and 34 in London - dependent in North
• Shipbuilding in Newcastle and Sunderland all closed down, iron and steel closed following this.
• Chemical industry closed down
• Coalmining lost

Affected North more:

• Natural resources in North so industry there - more fertile land in south
• Lack of investment in service sector

Question 3

Decline of the steel industry

Answer 3

1967 90% of companies merged together - 270,000 in steel

1980 Thatcher threatens to close industry due to energy prices, strikes ensure overpay and threat of closure - by 81 only 88,000

2007 Company sold to Tata steel, workers down to 23,000

Question 4

Recession

Answer 4

• Worsened unemployment in north more than south
• 18% increase in unemployment in north - 4.5 in south
• Austerity policy cut public services affecting north more
• 16 applicants per job in Hartleypool
• Hit manufacturing sector harder as people were replaced with machines so unemployment rose
• Falling house prices
• Higher budget costs in the North - £150 to 200 a head in North cities compared to 0-50 in south
• More outsourcing in order to cut costs

Question 5

Politics

Answer 5

• Neoliberal economic policies accelerated decline in the north industrial production - London benefited from growth
• Local government reorganised - took power and funding, reduced cost and efficiency, power centralised in London
• privatisation in steel and coal - strikes and jobs quit, in 68 270,000 employed and 81 only 88,000 - by 2007 only 23,000
• Dramatic policy introduction

Question 6

Education

Answer 6

• London drained UK human resources, taking them away from other areas
• Young students from south more likely to attain place at university
• 40% more likely to achieve A GCSEs
• Underfunding and lower quality of northern education
• Parental influence - south children more likely to have parents who do not care

Question 7

Evidence of divergence

Answer 7

• 28 private schools in NE, 350 in South
• £3.14 pint price in South, £5.33 in London
• N Crime rate 27% higher than national average
• SE salary £38k, NE $31k
• 30% benefits Liverpool Kensington vs 3% London Kensington
• £25k LVR Kensington, £69, LDN Kensington
• Life expectancy 71:84.7
• House prices in NE £230k, LDN £480k
• Southeast combined wealth is 2.64tn whereas North east is 324bn
• Gross disposable income 125 in London, 80-90 in North
• 27% unemployment in Liverpool, 25% Middlesbrough
• £20k salary in Liverpool - £30k in Hackney
• 28% more likely to die before 75 than South
• Salaries £22k more in London than NE

Question 8

Evidence of convergence:

Answer 8

• 40% difference between poorest areas reduced to 20%
• HS2 - £96bn scheme
• £14bn to highway agency
• Cornwall still poorest in south
• BBC built, decentralisation
• Allocated £1.7bn to towns and cities for levelling up
• North west house prices increased 288%, London only 12.6%

Question 9

Northern Powerhouse

Answer 9

• Proposal to boost growth in the north in Core Cities of Sheffield, Manchester, Liverpool Leeds Hull and Newcastle
• Aims to agglomerate and reposition economy away from the South
• £13bn on transport
• £3.3bn on enterprise partnerships
• 17 enterprise zones, 2 university enterprise zones
• £400m northern powerhouse investing
• £6bn on roads, trains, HS3, broadband
• RnD institute in Manchester
• Innovation centre Newcastle
• £78m for theatre in Manchester
• Links major cities to create agglomeration

Question 10

Enterprize zones

Answer 10

• Like SEZs, regions encouraging development and growth
• Tax cuts, exemptions and incentives to encourage entrants/staying in area
• Offer business rate cuts up to 100% for 5 years - £300,000
• Mainly located in Northern areas, aiming to boost job creations by removing barriers to entry and growth faced by private sector
• Regenerated and gentrified derelict areas
• Urban zones with good transport links grew fastest
• Cost over £2bn as of 2013

Although jobs only increased from 96,000 to 125,000 - as out migration to London mainly

Question 11

HS2

Answer 11

• Railway between London and Manchester, longer trains carrying 1800 people per train up to 250mph
• Estimated £42bn but recently over £100bn cost
• Birmingham London times cut by 30 mins, Man to London an hour and Birmingham Leeds an hour
• Frees up capacity and overcrowded commuter routes
• Hard to justify opportunity cost
• Reduces air travel as 4.5m journeys are done by air

Question 12

Decentralization

Answer 12

• Electing mayors in areas outside London i.e. Manchester, West Midlands, Liverpool - Metro Mayors who are mayors of smaller areas
• Helps allocate resources, transport more efficiently
• Gives a voice to individual cities who may need them as each city is different
• Mainly in Manchester so not beneficial to entire North
• Only 4 year terms
• May be less experienced and unable to efficiently run

Question 13

Devolution

Answer 13

• Big firms and services moving away from London
• BBC Norther Hub double in size within 10 years
• £10bn expansion of Salford Quays created offices, TV production, shops, hotels and homes
• Studio cost 50% lower
• Lifestyle costs 60% lower
• Media city built
• 250 businesses in the area employing 7,000
• In total 1,000 businesses in wider area employing 30,000
• Again Manchester centric