The UK Economy Shift
How the UK economy moved from heavy industry to services, science and technology: deindustrialisation, globalisation, enterprise zones, better transport, the north-south divide, and the place of the UK in the wider world.
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How the UK economy is shifting
For most of the last century the UK made its living from heavy industry: coal, steel, shipbuilding and factories. That has changed. Deindustrialisation means the decline of manufacturing, as many factories closed. Globalisation, where firms and trade spread across the world, let goods be made more cheaply abroad, so production moved overseas. In their place the economy now leans on services, science and technology. Governments have tried to help struggling areas with policies such as enterprise zones, and by improving transport. A north-south divide remains, with the south often wealthier. The UK also trades widely, keeping economic and political links with the European Union and the Commonwealth. This module explains those changes; the next one contrasts a growing and a declining rural area.
Economy words
Learn these before you match any change, and notice which two are causes and which two describe the result.
Old economy against new economy
The shift is easiest to see by comparing the kind of work that used to dominate with the kind that dominates now.
How to explain an economic shift
A good answer never just names a change. It ties a cause to its result. Cheaper production overseas draws work away from home, so plants shut and skilled jobs vanish. New tools and research open fresh industries, so growth appears somewhere new. A government scheme or a better rail line steers where that growth lands. Trace the chain from why it happened to what it did to real places, and remember the pattern is uneven across the country.
Match the term to its meaning
- deindustrialisation
- globalisation
- an enterprise zone
- the north-south divide
- the decline of manufacturing as factories close
- trade and firms spreading across the world
- tax breaks used to attract firms to a struggling area
- the wealth gap between the south and the north
Which change is this?
A UK car-parts factory closes because the same parts can be made far more cheaply in another country. Which change does this best show?
- Deindustrialisation driven by globalisation.
- The creation of an enterprise zone.
- A transport improvement.
- The growth of the service sector.
Signs of a changing economy
Select the TWO statements that show how the UK economy has changed.
- Service, science and technology jobs have grown
- Many manufacturing factories have closed
- Manufacturing now employs more people than ever
- The UK now trades with no other countries
Manufacturing jobs lost
An old industrial region had 60000 manufacturing jobs in an earlier decade. Today only 15000 remain. Subtract to find how many manufacturing jobs have been lost.
Order the regional shift
Put the stages of how an industrial region changed in order, earliest first.
- Heavy industry such as steel thrives in the region
- Globalisation makes the same goods cheaper abroad
- Factories close and manufacturing jobs are lost
- An enterprise zone and new service firms bring fresh jobs
Complete the facts
The decline of manufacturing as factories shut is called _____. The spread of trade and firms across the world is _____. An area given tax breaks to attract new firms is an enterprise _____. The wealth gap between the wealthier south and the poorer north is the north-south _____.
Match the policy or link to what it does
- an enterprise zone
- improved roads and railways
- new science and technology
- trade links with the EU and Commonwealth
- draws firms to a struggling area with tax breaks
- connects regions and helps business move goods
- creates fresh high-skilled industries
- gives the UK its place in the wider world
Spot the true UK economy facts
Tap the TWO statements that are true about the changing UK economy.
- Deindustrialisation means manufacturing has declined
- Science and technology are a growing part of the economy
- Wealth is spread perfectly evenly across the UK
- The UK trades with no other nations at all
Judge the change
Read each case and choose the best response, with a reason.
- A northern town loses its last steelworks. The council wants new jobs quickly. Which policy fits the aim best?
- A business says it can hire skilled staff and reach customers more easily in the south. What does this help explain?
- A student claims the UK no longer needs links with other countries. How should you respond?
Explain the UK economic shift
Explain how and why the UK economy has changed from heavy industry towards services, science and technology.
- Explain what deindustrialisation means and why factories closed
- Explain how globalisation moved production overseas
- Explain how a government policy such as an enterprise zone can help a struggling area
- Explain what the north-south divide is
- Finish with a judgement on how the UK keeps its place in the wider world through trade links