Introduction

The coming to power of the Blair government in 1997 promised a new era for the politics and practices of spatial development in the UK. Under the Thatcher and Major administrations inter- and intra-regional inequalities grew inexorably, not only as a consequence of wider economic processes but also as part of a deliberate strategy to promote the economic growth and competitiveness of the South and East of England (see Jones, 1997). The emphasis was on supporting those individuals, businesses, and places that were already seen to be globally competitive and successful and reducing support for those whose citizens were perceived to lack entrepreneurial dynamism and competitiveness. The re-election of a Labour government promised to end these divisions and to bring about greater social cohesion across the UK, albeit in a context where stable and strong economic growth was to remain the number one priority of policy (Blair, 1996). The new agendas were to be delivered by modernised state institutions whose powers, resources, and responsibilities would be devolved to empowered regional and local actors and communities (see Imrie and Raco, 2003). It seemed that ‘one nation’ politics was firmly back on the political agenda.

And yet, since 1997 the economic geography of the UK has become more, rather than less, divided. In 2004 it remained the most unequal country in the European Union with a staggering 23% of its wealth owned by just 1% of the population (ESRC, 2005). This was reflected in the spatial economy in which divisions between and within regions and cities continued to grow (see Dorling and Rees, 2003). In some areas the demands for housing and property markets have been so low that development sites have remained empty for years at a time, while in other areas costs of living have increased so rapidly that even medium-income groups have been finding it increasingly difficult to purchase a home or sustain anything like an ‘acceptable’ quality of life. Businesses have been complaining of severe labour shortages in some parts of the country even though concentrations of unemployment and underemployment exist in others. Meanwhile, in some parts of London and the South East there has been a growing fear that the loss of so-called key workers (KWs) is beginning to undermine the social fabric of communities and spatial economies.