gcse economics - how we live - regional inequalities

Within the UK there are many different types of regions. Some are quite wealthy others are quite poor in comparison, therefore the standard of living will vary between regions

ACTION

A In what ways does the South East have a higher standard of living than the North?
B Can you think of any problems that the South East might have?
C Do you think that every individual in these areas has the same standard of living?

REGIONAL POLICY

Government policy that attempts to readjust regional economic imbalances

- Government invests money into struggling areas e.g. roadbuilding project
- Government could give grants to businesses who locate in certain areas
- Government could lower taxes for firms willing to come to the area
- Cheaper rent for firms in these areas
- Money could be spent on improving colleges / education to give workers relevant skills
- Invest in leisure / social facilities to reduce crime

ACTION

D Why is regional policy necessary in the UK?
E Why does regional policy have an opportunity cost?

 SMART THINKING

F How could Government investment ‘trigger off’ a multiplier effect