ABSTRACT

In Chapter 3, Berkeley, Jarvis and Begley discussed how the latest recession impacted on UK businesses. The effect on employment was shown to be less severe than might have been expected, given the decline in output observed, and this resilience was attributed to a combination of four factors: the health of businesses entering the recession; the flexibility of the labour market; the collective approach taken to address the impacts of recession; and a supportive macro-economic environment. It is the aim of this chapter to focus on the fourth of these factors by considering the role of UK government policy in promoting a number of schemes and initiatives designed to support businesses through the recession. This analysis will provide national, regional and local perspectives, utilising case study research and intelligence from the Local Government Association and Audit Commission. However, it is not the aim here to evaluate in a detailed way government interventions during the recent recession; rather, the purpose is to categorise the different types of initiative promoted by public agencies, and provide an overview of their take-up by businesses. Specifically, the chapter will first conceptualise the role of the ‘state’ in supporting businesses during periods of economic recession, highlighting actions taken by central government in the UK; second, outline the support that was made available to businesses at a regional level through a case study of the West Midlands Regional Task Force; third, examine initiatives implemented by local authorities in supporting businesses; and fourth, draw summary conclusions which comment upon the effectiveness and impact of support solutions at different spatial scales.