Changing Function and Character of Places

This lesson examines how and why the function and character of places change over time, with a focus on the processes of deindustrialisation, the rise of the service economy, and the impact of globalisation, government policy and technology. It addresses the Edexcel Enquiry Question: "Why might regeneration be needed?" by establishing the context of economic and social change that creates the conditions requiring regeneration.

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What Is Meant by 'Function' and 'Character'?

The function of a place refers to its primary economic and social purpose — what it "does" and what it is known for. Functions include residential, commercial, industrial, administrative, educational, cultural, recreational and military.

The character of a place is its distinctive identity — the combination of physical features, built environment, demographics, cultural practices, economic activity and "atmosphere" that makes one place different from another.

Both function and character change over time, sometimes gradually and sometimes rapidly. These changes are driven by economic restructuring, technological innovation, government policy, demographic shifts and globalisation.

Concept	Definition	Example
Function	The primary purpose or economic role of a place	Sheffield: industrial (pre-1980) → post-industrial (post-1990)
Character	The distinctive identity and "feel" of a place	Liverpool's character shifted from decline in the 1980s to cultural renaissance by 2008
Functional change	A shift in the primary economic or social purpose of a place	London Docklands: from shipping/warehousing to financial services and residential
Character change	A transformation in how a place looks, feels and is perceived	Shoreditch, London: from run-down industrial to trendy creative quarter

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Deindustrialisation in the UK

Deindustrialisation is the process by which manufacturing industry declines in importance within an economy, measured by falling employment, output and the closure of factories and industrial sites.

Scale of Deindustrialisation

The UK's industrial decline has been dramatic:

• In 1971, manufacturing accounted for approximately 32% of UK GDP and employed over 8 million people.
• By 2023, manufacturing accounts for approximately 9% of UK GDP and employs around 2.6 million people.
• Between 1979 and 1981 alone, over 1.5 million manufacturing jobs were lost — the most rapid period of deindustrialisation in any developed country.

Causes of Deindustrialisation

graph TD
    A[Causes of Deindustrialisation] --> B[Globalisation]
    A --> C[Government Policy]
    A --> D[Technological Change]
    A --> E[Resource Depletion]
    A --> F[Competition]
    B --> B1[Cheaper labour in LICs/NEEs]
    B --> B2[TNCs relocate production overseas]
    C --> C1[Thatcher-era policies: reduced subsidies]
    C --> C2[Privatisation of nationalised industries]
    D --> D1[Automation replacing manual labour]
    D --> D2[Robotics and computerisation]
    E --> E1[Coal exhaustion in some areas]
    E --> E2[Declining ore quality]
    F --> F1[Japanese, Korean, Chinese manufacturers]
    F --> F2[Lower costs, higher productivity abroad]

1. Globalisation and international competition: From the 1970s, UK manufacturers faced increasing competition from countries with lower labour costs — initially Japan and South Korea, later China, India and Southeast Asia. TNCs could produce goods more cheaply overseas and import them to the UK. The UK's steel, textiles, shipbuilding and car manufacturing industries were devastated.

2. Government policy: The Conservative government under Margaret Thatcher (1979–1990) pursued policies of privatisation, deregulation and reduced subsidies to industry. The National Coal Board oversaw the closure of most UK coal mines; British Steel was privatised; subsidies to manufacturing were cut. The argument was that uncompetitive industries should be allowed to fail, and the market would create new, more productive employment.

3. Technological change: Automation, robotics and computerisation reduced the need for manual labour in manufacturing. Factories that once employed thousands could operate with hundreds. This process has accelerated with the adoption of AI and advanced robotics in the 21st century.

4. Resource depletion: Some industries declined because the natural resources they depended on became exhausted or uneconomical to extract. The UK's coal industry is the most prominent example — from over 900 operational mines in the 1950s to the closure of the last deep mine (Kellingley Colliery) in December 2015.

Impacts of Deindustrialisation

The impacts of deindustrialisation have been spatially concentrated in areas that were most dependent on manufacturing:

Impact	Description	Example
Unemployment	Mass job losses, often affecting whole communities simultaneously	Sheffield lost over 50,000 steel jobs between 1971 and 1991
Out-migration	Younger, skilled workers leave for better opportunities elsewhere	Population of Liverpool fell from 857,000 (1931) to 489,000 (2011)
Physical decay	Abandoned factories, derelict land, environmental contamination	Brownfield sites across South Yorkshire, Merseyside, Teesside
Social deprivation	Poverty, poor health, low educational attainment, crime, substance abuse	Former mining communities in South Wales, County Durham
Cultural loss	Erosion of identity and purpose linked to lost industries	Mining communities lost their defining identity after pit closures
Multiplier effects	Job losses in manufacturing cause further losses in supply chains and local services	Closure of a car plant reduces demand for local shops, pubs, transport

Exam Tip: When discussing deindustrialisation, always use the negative multiplier effect concept. Show how one factory closure triggers a chain reaction: suppliers lose contracts, workers lose income, spending in local shops falls, retailers close, tax revenues decline, council services are cut, and the area becomes less attractive for investment. This demonstrates sophisticated understanding.

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The Rise of the Service Economy

As manufacturing has declined, the UK has transitioned towards a service-dominated economy. This process is sometimes called the shift to a post-industrial economy.

Types of Service Employment

Category	Examples	Characteristics
Consumer services	Retail, hospitality, leisure, personal care	Often lower-paid, part-time, insecure employment
Producer services	Finance, insurance, legal, accounting, consulting	Higher-paid, professional, concentrated in major cities
Public services	Healthcare (NHS), education, social services, police	Funded by taxation; significant employer in many areas
Creative and digital	Media, design, software, gaming, advertising	Fast-growing; clustered in cities; often requires high skills

Spatial Distribution of Service Employment

Service sector growth has been geographically uneven:

• London and the South East have benefited disproportionately from the growth of high-value financial and professional services. The City of London and Canary Wharf alone employ over 500,000 people in financial services.
• Regional cities (Manchester, Leeds, Edinburgh, Bristol) have attracted some financial and professional services, often in lower-value "back office" functions.
• Former industrial towns (Burnley, Hartlepool, Stoke-on-Trent) have seen growth mainly in lower-paid consumer services — retail, care work, hospitality — often replacing better-paid manufacturing jobs.
• Rural areas have limited service employment, particularly in higher-value sectors, due to poor transport links and limited digital infrastructure.

This uneven distribution contributes to the north-south divide and to growing spatial inequality within the UK.

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Retail Change

Retail is a key indicator of place function and character. The way people shop has changed dramatically, with profound effects on town centres and high streets.

Phases of Retail Change