New analysis from the Resolution Foundation indicates that the government's current approach to 'reindustrialisation' and addressing regional inequality is insufficient. Experts, including Ed Balls, Anna Stansbury, and Dan Turner, concluded that efforts still fall "well short of the scale, balance and ambition required…to reverse long-standing spatial inequalities." This assessment comes as the UK grapples with the long-term economic shift from manufacturing dominance to a service-based economy.
The report highlights the symbolic transition seen in places like Newcastle, where Atom bank's headquarters, The Pattern Shop, once served as a hub for Robert Stephenson's steam engine patterns. This shift underscores the need for a modern interpretation of reindustrialisation that acknowledges the contemporary economic landscape rather than attempting to recreate past industrial models.
Focusing on the North, a detailed look at Lancashire reveals a mixed picture. The county ranks in the middle for Northern productivity, exceeding the UK average, with growth in professional services and education. Manufacturing also saw a significant increase in Gross Value Added (GVA), particularly in specialist aerospace machinery in Preston. However, unlike other manufacturing sectors, this specific area offered no substantial boost for local employment.
Despite these pockets of growth, the analysis points to persistent serious deprivation in areas within Lancashire such as Blackpool, Blackburn, and Burnley. This suggests that while certain sectors may show economic promise, their benefits are not always translating into widespread job creation or an alleviation of poverty across all communities.
The findings imply that a successful reindustrialisation strategy must look beyond traditional manufacturing metrics and consider how new industries can genuinely contribute to job growth and reduce spatial inequalities. The current efforts, while aiming to rebalance the economy, appear to lack the comprehensive scope needed to make a significant impact on long-standing regional disparities.