The UK government’s “levelling up” programme aims to “spread opportunity more equally across the
UK”. For one region of your choice, suggest how this “levelling up” could be carried out in practise.
“It is that genius and talent and enthusiasm and imagination are evenly distributed throughout the
population”. Some of Boris Johnson’s final few words as leader of the Tory party and the legacy which
his leadership underpins will be well defined by the governments ‘levelling up’ programme. The
programme aims to tackle the productivity, pay, educational attainment and health gaps which vary
disproportionately across the country, which in itself has a greater geographical disparity when
compared to other developed nations.1 The economic output of London is 250% greater than the
entirety of the north-east 2, moreover when comparing incomes, the north-east has an average of
£16,000 per head whilst in London it’s estimated to be £28,000 3. Evidently, opportunity is dispersed
with a particular bias toward the south-east of the nation, however through the development of
education, infrastructure, legislation and culture the gaps in economic disparity can be truncated in
order not just to resolve inequality but also to present a bolstering of real aggregate UK GDP by tens
of billions of pounds annually 4.
Regionally, within the north-east there was an 1.2% fall in real GDP between Q2 and Q3 of 2021
whereas in London GDP increased by 2.3% at the same time, making it the largest regional
contraction within England 5. Moreover, in comparison to the Capital, the north-east has always had a
traditional focus on mining, shipbuilding and iron and steel which in modernity are all declining
industries 6. Focus on traditional markets, can be cited as a root cause in the divide between London
where innovation and foreign direct investment are at the heart of economic development and the
north-east where there are only 329 private sector enterprises per 10000 adults, which is far below
the national average of 4837. Although, Brexit was proposed as a tool in which British industry could
flourish the north-east has somewhat struggled during the post-Brexit era, a survey conducted by the
north-east England Chamber of Commerce found that 75% of north-eastern exporters had difficulty
trading post-Brexit8. Whereas in London there has been no noticeable drop in job opportunity, as well
as in investment the city continues to be resilient against the largely negative impacts Brexit would
have thought to have had on the capital9. As one of the global leaders in FinTech and banking and as
well as being a centre of trade between trans-Atlantic movement, the ability for the services offered in
London to be replaced by foreign markets is minimal in comparison to the north-east, where the
mining and steel industry have been relinquished to East-Asian economies. In 2021, the north-east
underwent a period of a continuous drop in exports for three consecutive quarters, 6.7% below the
levels seen in the previous year (£3.2 billion compared to £2.8 billion in the third quarter of 2021)10
To bring equal opportunity to the north-east would not only be beneficial nationally but the lives of it’s
2.6 million inhabitants (2019, Eurostat) 11 would unequivocally be improved according to large
numbers of modern economic measurements. Historically speaking innovation is the harbinger of
equality, seen through the Renaissance, Industrial Revolution and other periods of vast economic
growth, innovations have brought reduced disparity as output and capital are more readily available12.
When tackling the problems in the north-east however, it is much more difficult to readily provide the
funds and training required for the development of innovative technologies by the state. Alternatively,
a better option would be to encourage the culture and attitudes required to facilitate such growth. By
changing Northern policy in order to emphasise the different stages of innovation, in particular
research and development which could be supported through the regions five universities, by
encouraging FDI as well as presenting a greater number of graduate opportunities for the regions
university students in STEM, the long-term productive capability of the north-east will be bolstered
and despite its small population the current output of $40 000 dollars per person would no doubt be
greater. Although in London there is a culture of hard work which is incentivised by the vast sums of
money in corporate offices, the cut-throat nature of business may in fact present a tougher climate in
which new and upcoming businesses without a great deal of financial backing may find it harder to
grow. As a result, the north-east should develop its own culture in standing with its traditional values
of friendliness and approachability all the meanwhile continuing to promote its reputation of work ethic
and determination.
‘Levelling up’ is not only an economic issue but it also holds prevalence as a moral dilemma.
Fundamentally, it is a human right that opportunity is spread equally and those both poor and rich to a
certain extent have the same opportunities before them. Much like the Prime Minister stated, talent is
not concentrated regionally, the capacity to develop and grow isn’t pinpointed at one city nor one
region rather it is there for everyone in the nation. Implementing the use of technology is key in
economic development as well as societal welfares the ability to access data at a greater speed will
mean the capacity for transactional practises becomes greater and ultimately lead to a greater level of
productivity. The use of educational institutes especially the five universities of Newcastle, Teesside,
Durham, Sunderland and Northumbria will no doubt play a substantial role in the future of scientific
and productive innovation within the north-east. On balance, the greatest challenge facing the northeast is the reputability of its workforce, of its industry and of its capital by continuously aiming to
progressively ‘step-forward’ instead of ruminating on historic markets, the north-east will grow into a
hub for foreign investment and not only attract external talent yet prevent its very own talent from
moving elsewhere and so retaining its very own brilliance.
References:
Assets.publishing.service.gov.uk. 2022.[online] Available at:
<https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1
052046/Executive_Summary.pdf> [Accessed 10 July 2022].
Cities, C., 2022. The problem of regional inequality - Centre for Cities. [online] Centre for Cities.
Available at: <https://www.centreforcities.org/reader/levelling-up-the-uks-regional-economies/theproblem-of-regional-inequality/> [Accessed 10 July 2022].
Ft.com. 2022. UK’s regional inequality one of worst in developed world. [online] Available at:
<https://www.ft.com/content/7204c062-1047-11ea-a225-db2f231cfeae> [Accessed 10 July 2022].
North East Evidence Hub. 2022. Report. [online] Available at:
<https://evidencehub.northeastlep.co.uk/report/businesscounts#:~:text=Businesses%20in%20the%20North%20East&text=The%20latest%20North%20East%
20total,483%20for%20England%20excluding%20London.> [Accessed 10 July 2022].
Oecd.org. 2022. [online] Available at: <https://www.oecd.org/education/imhe/39552858.pdf>
[Accessed 10 July 2022].
Ons.gov.uk. 2022. Eurostat - Office for National Statistics. [online] Available at:
<https://www.ons.gov.uk/methodology/geography/ukgeographies/eurostat> [Accessed 10 July 2022].
Ons.gov.uk. 2022. Quarterly country and regional GDP - Office for National Statistics. [online]
Available at:
<https://www.ons.gov.uk/economy/grossdomesticproductgdp/datasets/quarterlycountryandregionalgd
p> [Accessed 10 July 2022].
Taylor & Francis. 2022. Resilience in the City of London: the fate of UK financial services after Brexit.
[online] Available at: <https://www.tandfonline.com/doi/full/10.1080/13563467.2021.1994540>
[Accessed 10 July 2022].
Whitfield, G., 2022. Brexit impacting on 75% of North East exporters, survey finds. [online] Business
Live. Available at: <https://www.business-live.co.uk/economic-development/brexit-impacting-75-northeast-20878060> [Accessed 10 July 2022].
Whitfield, G., 2022. Drop in North East exports cause latest concern for region's economy. [online]
Business Live. Available at: <https://www.business-live.co.uk/economic-development/drop-north-eastexports-cause-22781709> [Accessed 10 July 2022].
Moshe Justman, Mark Gradstein,
The Industrial Revolution, Political Transition, and the Subsequent Decline in Inequality in 19thCentury Britain,
Explorations in Economic History,
Volume 36, Issue 2,
1999,
Pages 109-127,
ISSN 0014-4983,
https://doi.org/10.1006/exeh.1999.0713.
(https://www.sciencedirect.com/science/article/pii/S0014498399907131)
Abstract: Democratization was a key mediating factor linking Britain's first industrial revolution to
subsequent reductions in income inequality. Accelerated economic growth, generating a wider
distribution of discretionary resources, created incentives for repeated expansions of the franchise,
which then led to a progressive shift in legislation. After the Second and Third Reform Acts, income
inequality was reduced by successive acts of legislation which provided free public education;
strengthened the legal standing of the trade unions; aided the aged, the sick, and the unemployed
without abridging their political rights; and replaced regressive indirect taxes with progressive taxes on
income, land, and inherited wealth.
Keywords: Industrial Revolution; growth; franchise; inequality; political dynamics.