The period after World War II saw a steady decline in Britain’s manufacturing industries, as they were unable to produce profitable goods. The demand for British produce was rapidly falling and therefore the UK was thrown into economic recession because industry was not generating sufficient money. This continued decline in the manufacturing industry of the country meant that up until 1979 government money was still being poured into industry in an attempt to keep it alive. However, in 1979 the Margaret Thatcher government began to adopt a completely different approach towards British manufacturing industries. Ailing industries could no longer rely upon government financial support to keep them going, and many traditional manufacturing industries were forced to close because of this lack of investment. This caused high unemployment and an acute downward multiplier effect in many of the traditional manufacturing areas of the UK, such as Merseyside. In the 1990s and 2000s, global overcapacity has also been a major reason for the further decline of manufacturing industries across the world. The ups and downs in world economies has often resulted in falling demands for goods, resulting in industries having to reduce their production as too many products are on the market.
After the UK became a member of the European Union in 1973, UK trade began to shift, and an increasing majority of imports originated from EU countries rather than the USA. This meant that Liverpool, as a west coast port concerned with trade from America, declined as fewer and fewer ships entered the UK through this port. Finally, the de-industrialisation of UK manufacturing industries caused a shift of emphasis from secondary, manufacturing industries, to more quaternary, high technology industries. This change of emphasis meant many traditional, heavy industries, such as shipbuilding were no longer profitable and declined even further as the new quaternary industries prospered in other regions.
All of the reasons for decline explained above caused major unemployment problems in the Merseyside region in the late 20th century, with a huge number of unskilled workers unemployed from the de-industrialisation of the area. In some areas of the Merseyside region, up to 25% of the population were unemployed. This caused many economic and social problems in the inner city areas of Liverpool and Birkenhead where the industries were located, and where de-industrialisation had the greatest effect. The housing stock in the inner city areas, built for a large number of factory workers is small and cramped, with few, if any, amenities. They are now very old, and a general deterioration of the housing is taking place due to its age and quality. Economic decline, due to high numbers of unemployed has meant that few services are available and many people have left to look for work elsewhere than in the inner city areas. This outmigration has meant that the inner city has become largely inhabited by the poorer economic groups, who cannot afford to leave the area. The dominance of these groups, such as the elderly or single parents, who are less able to outmigrate has put pressure on certain services such as healthcare, and the lack of employment has resulted in the inner city regions of Birkenhead and Liverpool having exceptionally high crime rates. Few social facilities are available and therefore other social problems, such as drugs are also characteristic of these areas.
Over the last 20 years the government has addressed this problem of unemployment due to de-industrialisation by identifying special development areas that have been given assistance in developing alternative employment, usually in the new high technology industries. Under EU regional guidelines there are three tiers of assisted areas, with Merseyside (including the Wirral) falling within tier 1, where GNP per capita is 75% or below of the EU average. The aim of this new investment in the region is to improve, not only job creation, but also the social conditions and environmental standards of the inner city areas. This has been done in a number of ways.
Firstly, by the introduction of the Merseyside Urban Development Corporation which was established by the local government with the responsibility of securing the regeneration of the Merseyside region. The aim was to achieve this by bringing land and buildings into effective use, encouraging the development of new industries, creating an attractive environment and ensuring that housing and social facilities were available to encourage people to live and work in the area.
There are also many individual schemes taking place throughout Liverpool and the Wirral area, to try to regenerate the region. For example, since October 2004 work has been undergoing on the Paradise Street Project in Liverpool city centre. The £800 million project aims to redevelop the Paradise Street area of the city centre by the introduction of over 1.6 million square feet of new shopping space, two hotels, a gallery, a new bus station, a tram network, a new 5.5 acre public park, a cinema and parking space for over 3,000 vehicles. It is currently the largest retail scheme in Europe, and will create over 4,000 new permanent jobs in the city of Liverpool.
A second example of an individual project established to regenerate the city of Liverpool is the regeneration of the King’s Dock. Funding from the Northwest Development Agency, Liverpool City Council, English Partnerships and private companies will go towards the building of a new arena and convention centre on the site at King’s Dock. The multi-purpose arena seating approximately 10,000, a 1,350 seat conference centre and an exhibition hall will all be accommodated in two new buildings on the site, and in addition the project will include two hotels, 18,000 square metres of office space, 9,000 square metres of new retail space, 3,500 new parking spaces, a public plaza and up to 1,800 residential homes. The scheme is projected to create 2,200 new jobs in the area thus helping to improve conditions within the city.
There are also many schemes scheduled to take place in the Wirral, in an attempt to improve employment, social, economic and environmental conditions in the declining areas of the peninsula. In September 2004 the Wirral Council outlined 15 particular areas that would be receiving both public and private funding in an attempt to improve conditions there. These include Birkenhead Park where a new glass pavilion is to be opened this summer. A further £15 million is to be spent on redeveloping the park, including the introduction of formal gardens, exhibition spaces, teaching areas and a café. Improvements are also planned for West Kirby and Hoylake with the transformation of both town centres over the next 10 years, and addressing the fading Hoylake promenade. The Wirral Docklands has been proposed as a possible site for a £250 million scheme to house some of the world's most endangered species. The 100 acre proposal would include huge bio-domes and recreate the climate and freshwater conditions of an Amazonian rainforest. Finally, the Twelve Quays development between Birkenhead and Wallasey is a major development area overlooking the Liverpool waterfront.
All of these schemes have already had a great effect on the region by reducing unemployment and improving conditions within the inner city areas. Unemployment in Merseyside has fallen to its lowest since the 1970’s (less than 6%) and the city has become an investment location of choice for many national and international companies. Liverpool’s status as European Capital of Culture 2008 has already had a great effect on the city, encouraging a huge amount of investment within the city, and further significant growth is anticipated over the coming years as improvements continue to happen with financial assistance from both the private and public sectors.
