The energy crisis and discovery of North Sea oil has increased the output of the mining industry, dramatically. However, the collapse of oil prices in 1986 may see a reversal of this trend. Service industries including banking, communications and insurance have expanded rapidly. Areas with below-average income per person and high unemployment are depressed regions . They usually have a large concentration of declining industries and are remote from the major markets.
New firms prefer to locate in the expanding South East.
The gap between the prosperous South East and the rest of the country is growing. New firms are attracted to the South East by the extensive motorway and air links and the availability of workers familiar with the new technologies. Government Regional Policy Footloose firms can be attracted to depressed regions by government grants. Regional selective assistance . Firms locating in intermediate development areas may receive a grant towards machinery and training costs.