Regional Policy in The United Kingdom
UK regional policy was born during the economic depression of the 1930s, when heavy industries in the north were devastated.
Assisted Areas were established, within which companies could acquire grants or capital allowances - known as Regional Selective Assistance - in return for protecting jobs.
The overall pattern of policy changed little in the next forty years. Despite criticism by a 1970s Royal Commission that it was "Empiricism run mad; a game of hit and miss played with more enthusiasm than success", governments of both parties maintained Assisted Areas. It was not until the 1980s Thatcher government that regional policy was significantly rolled back, with Assisted Areas substantially reduced in size.
Increasingly UK policy must operate within the EU regional policy framework, with its strong injunctions against unfair competition (generally meaning state aid).
The post-1997 Labour administration reorganised regional policy, with RSA replaced by Selective Finance for Investment in England Scotland.
Read more about this topic: Regional Policy
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