For students studying AQA GCSE Geography, the north–south divide is an important part of the topic “The Changing Economic World.” Students are expected to understand strategies used to address regional differences in the UK, including why they are needed and how they aim to reduce inequality between regions.
One challenge when teaching this topic is that government policy changes frequently. Over the past decade, the UK’s approach to regional inequality has evolved from earlier regeneration programmes to the “Levelling Up” agenda, and more recently towards policies focused on devolution, investment incentives and long-term regional development funding.
This means the topic is dynamic. Policies are introduced, renamed and sometimes replaced as governments try different approaches to regional development. The strategies below, therefore, provide a snapshot of the current policy landscape that teachers may wish to reference in lessons.
Broadly speaking, most recent strategies fall into four main categories:
- Devolution – transferring decision-making powers from central government to regional authorities.
- Investment incentives – encouraging businesses to invest in particular regions.
- Regeneration and regional funding – providing financial support to disadvantaged communities and local economies.
- Infrastructure investment – improving transport and connectivity between regions.
Devolution
One of the most significant trends in UK regional policy is the transfer of decision-making power from central government to regional authorities. The idea behind devolution is that local leaders are better placed to understand the economic challenges and opportunities in their region and can design policies tailored to local needs.
English Devolution White Paper (2024)
The English Devolution White Paper aims to expand devolution across England so that more regions have elected mayors and strategic authorities responsible for economic development.
These regional authorities can gain powers over areas such as:
- transport planning
- housing development
- skills and training
- local economic growth strategies
Regions such as Greater Manchester, the West Midlands, the Liverpool City Region and Tees Valley already operate under devolved governance structures, with additional areas gradually gaining similar powers. The intention is to allow regions to develop locally tailored economic strategies, helping reduce long-standing regional inequalities.
Integrated Settlements
Another development linked to devolution is the introduction of Integrated Settlements.
Traditionally, local authorities had to compete for numerous short-term funding programmes. Integrated Settlements combine multiple funding streams into a single multi-year budget, allowing mayoral authorities to allocate resources more strategically.
Greater Manchester and the West Midlands were among the first areas to receive Integrated Settlements from 2025 onwards, enabling them to coordinate investment in transport, skills and regeneration projects more effectively.
Investment incentives
Another approach used to reduce regional inequality is to encourage businesses to invest in specific areas. These policies attempt to stimulate economic growth by attracting new companies, industries and jobs to regions outside London and the South East.
Investment Zones
Investment Zones are areas where businesses receive incentives designed to encourage investment and innovation.
Typical measures include:
- tax relief for businesses
- simplified planning rules
- support for research and development
- investment in skills and training
Most Investment Zones are located outside London and the South East. Examples include:
- Greater Manchester
- Liverpool City Region
- West Yorkshire
- South Yorkshire
- North East England
- West Midlands
Each zone focuses on particular growth sectors such as advanced manufacturing, digital technology, life sciences or green industries. The aim is to create clusters of innovation that generate high-skilled jobs and long-term economic growth in regions that historically experienced lower levels of investment.
Freeports
Freeports are another strategy designed to stimulate regional economies. These are special economic zones located around major ports where businesses benefit from tax incentives, simplified customs procedures and government investment.
Freeports aim to encourage:
- international trade
- manufacturing investment
- logistics and supply chains
- innovation in emerging industries
Several Freeports have been established in regions historically associated with industrial decline, including Teesside Freeport, Humber Freeport and Liverpool City Region Freeport. Many are linked to emerging sectors such as offshore wind energy, green hydrogen and advanced manufacturing.
Regeneration and regional funding
Alongside policies designed to attract investment, the government also provides direct funding to support regeneration and economic development in disadvantaged areas.
UK Shared Prosperity Fund (UKSPF)
The UK Shared Prosperity Fund replaced European Union regional development funding following Brexit.
The fund supports projects that aim to improve:
local businesses
employment opportunities
community infrastructure
skills and training
Local authorities have considerable flexibility in deciding how the funding is used. Many projects have focused on supporting small businesses, regenerating town centres and improving access to employment and training opportunities.
Plan for Neighbourhoods / Pride in Place Programme
Another initiative aimed at improving communities considered economically “left behind” is the Plan for Neighbourhoods, later renamed the Pride in Place Programme.
Selected locations can receive up to £20 million over ten years to support improvements to:
- town centres
- public spaces
- community services
- local infrastructure
The long-term nature of the programme is intended to support sustainable regeneration rather than short-term projects.
Changes to the Treasury Green Book (2026)
The government has also revised the Treasury Green Book, which provides guidance on how public investment decisions are assessed.
Historically, cost–benefit analysis often favoured projects in already prosperous regions where economic returns were higher. The revised guidance aims to ensure that projects in northern, coastal and rural areas receive fair consideration when government funding decisions are made.
This change may make it easier for infrastructure and regeneration projects outside London and the South East to secure investment.
Infrastructure investment
Investment in transport infrastructure is another key strategy for reducing regional inequalities.
Improving transport networks can make it easier for people, goods and services to move between regions, helping businesses grow and encouraging investment in areas outside London and the South East.
Better connectivity can:
- improve access to jobs
- reduce travel times between cities
- make regions more attractive to investors
- support wider economic development
One major example is HS2, the high-speed rail project originally designed to improve rail capacity and reduce journey times between London, the Midlands and northern England. Although parts of the project have been revised, its aim was to strengthen economic links between major UK cities.
Other projects include upgrades to the TransPennine rail route, proposals for Northern Powerhouse Rail, and improvements to major road networks.
A changing policy landscape
For teachers and students, one key thing to recognise is that policies aimed at reducing the north–south divide continue to evolve. Programmes are introduced, restructured and sometimes replaced as governments attempt new approaches to regional development.
In the classroom, it is not necessary to teach every policy in detail. Instead, it can be more effective to cherry-pick a few examples that are particularly relevant to your local area or region. For example, schools in the North East may wish to explore the role of Freeports or Investment Zones, while those in city regions with elected mayors might focus on devolution and mayoral powers.
What matters most is that students understand the different types of strategies governments use to reduce regional inequalities, rather than memorising every policy initiative.
Ultimately, all of these approaches share the same goal: to reduce differences in income, employment opportunities and economic growth between regions of the UK and create a more balanced national economy.
