Places - spatial scales of change

The characteristics and impacts of external forces operating at different scales from local to global, including either government policies or the decisions of multinational corporations or the impacts of international or global institutions.

International scale

• Investment by multinational corporations has a profound effect on both demographic and cultural characteristics of an area and on economic change and social inequality.
• The energy industry in the UK has attracted inward investment from the French company EDF and China General Nuclear Power Corporation, who will build a new nuclear power station at Hinckley Point in Somerset. The project has the potential to create highly skilled jobs which will reduce social inequality and potentially change demographic characteristics if highly qualified employees are attracted to the area.
• In hi-tech industry, Apple announced in May 2016 the opening of a new development centre in Hyderabad, India. The investment from a multinational as influential as Apple has the potential to change demographic and economic patterns significantly in the area, although it is likely to compound pre-existing social inequalities between urban and rural areas in India. Similar patterns are emerging in China, where most foreign direct investment (FDI) in the form of manufacturing development is focused on urban areas.

National scale

British government policy to reduce social and economic inequality focuses on five key areas:

• Taxation – the redistribution of income and business tax towards poorer members of society.
• Subsidies – for example, free school meals, winter fuel allowance for pensioners and income support.
• Planning – priority is given to upgrading housing and services in the most deprived areas.
• Law – equal opportunities are protected by law, as is the minimum wage.
• Education – training is given to vulnerable members of society in order to raise skills levels and qualifications, enabling them to gain employment.

In addition, the government has invested in areas of high deprivation in order to drive economic growth and reduce inequality. The DVLA is located in Swansea and the Office for National Statistics (ONS) moved from London to Newport, Wales in 2007. The government has also sought to devolve more decision-making powers to local authorities since 2010 in order to target public spending where it is most needed.

Regional scale

There are many examples of external forces operating at a regional scale in order to address economic imbalance. These often have an effect on the demographic and cultural characteristics of a place.

The Northern Powerhouse was first proposed by the British government in 2014 as a way to turn the north of the country into a collective economic force to rival the concentration of wealth in the south. The initiative centres on Manchester but has regional hubs in Leeds, Liverpool, Bradford and Newcastle.

The BBC moved several key departments to Salford Quays in 2011 and this was thought to be a key part of the Northern Powerhouse project. The migration of staff from London to MediaCityUK was the catalyst for economic and demographic change in the area and dozens of digital firms - and the University of Salford - have subsequently set up nearby.

This has reinvigorated the regional economy and resulted in some significant cultural changes. The Imperial War Museum North, the Lowry (theatre and art gallery) and several shopping centres opened before MediaCityUK (in 2002 and 2000 respectively) but have further cemented the area’s reputation as a centre for culture and the arts.