The UK has a very long tradition of regional governance and the development of regional science in general. In particular, some researchers believe that the start of regional policy in the UK was given in the late 20s of the last century in order to eliminate the so-called “unemployment loop” (regions with a very low level of employment). In 1928, the government created a special Office for the Movement of Industry, which dealt mainly with the deportation of workers from depressed areas to more developed ones.
In the 30s of the twentieth century in the UK, on behalf of the government, a number of regional studies were conducted, as a result of which the Law on Special Areas was adopted. With the adoption of this law, an attempt was made to solve regional problems (primarily regional unemployment) by “bringing work closer to workers”. Further development of the theory and practice of regional management led to the fact that subsequently numerous amendments were made to this law, allowing to provide loans for small businesses in depressed regions, large Treasury loans for large companies, preferential government contracts, tax benefits, etc.
In the post-war years, the British government increased its attention to the country’s regional problems. In 1945, the Law on the Distribution of Industry was adopted, in which the regions receiving assistance were no longer called special, but regions of development. In the development regions, incentive measures such as the benefits of construction licenses and certificates for industrial construction were widely used. The Local Employment Act, passed in 1960, added direct construction subsidies to the list of incentive measures for the establishment of their own enterprises in problem regions. A number of subsequent similar legislative acts (1963, 1966, 1970, 1972 and 1975) significantly strengthened and expanded incentives for problem regions, the list of which already contained preferential subsidies for the purchase of fixed assets, free depreciation policy, restrictions on the placement of institutions in developed regions, direct planning of regional development, etc. The dynamics of direct expenditures of the British Treasury in 1960-1980 on regional policy testifies to their sevenfold an increase during the period under review.
Currently, the UK government is also actively managing the development of the regions. The main role in the development and implementation of the British regional policy is played by the Ministry of Trade and Industry, which is engaged in clarifying the composition and criteria for the allocation of geographical units – objects of state support. Today, this work is carried out in accordance with the regional policy aspects of the European Union (EU).
In particular, at present, the grid of regions of great Britain, which are provided with state support, includes three of their groups:
1) regions with an unnaturally low standard of living and a significant level of unemployment;
2) regions in which selective assistance will not have a negative impact on the functioning of the market mechanism to such an extent as to contradict the interests of the Member States;
3) regions where the British government has the right to allocate direct additional subsidies to enterprises.
In addition to the Ministry of Trade and Industry, the Department for the Environment, Transport and the Regions of Great Britain is also engaged in solving regional problems, whose functions have a pronounced regional orientation. Thus, an analysis of the practice of regional management in such a typically market, traditionally liberal country as the UK, indicates a very active, often direct state regulation in the field of regional development.
Currently, there are 6 metropolitan counties in the UK, which cover large agglomerations (excluding London). Each of these counties has between 1.2 and 2.8 million people. Metropolitan counties are divided into 36 metropolitan counties, each of which includes former county cities with a population of more than 200 thousand inhabitants. The rest of the territory (mainly rural areas of Great Britain) is divided into non-metropolitan counties with a population of 110 thousand to 1400 thousand inhabitants. The non-metropolitan counties are divided into 296 non-metropolitan counties, with a population of between 60,000 and 100,000 inhabitants. The basis of the system of territorial administration in the UK are the counties, they are transferred all the most important functions. Some of these functions are assigned to metropolitan districts. The remaining districts are endowed with only secondary functions.