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Regenerating Places

What attracts investment, and the multiplier effect

  • 3 things to know
  • Paper 2

Overview

What attracts private developers and inward investment, including infrastructure, workforce skills, accessibility and competitive incentive packages, the race to the bottom between local authorities, how investment triggers multiplier effects through supply chains and local spending, and job creation, housing, environmental improvement and community facilities as regeneration priorities.

What you need to know

Answer each one before you reveal it.

Your recallNot started
Evaluation

Why might competition between local authorities for inward investment be problematic?

Key term

Why might environmental improvement be prioritised in a regeneration strategy?

Key term

What attracts private developers to invest in regenerating areas?

Questions from this subtopic

Each one with the model answer underneath.

  1. 1

    What attracts private developers to invest in regenerating areas?

    Model answer

    Private developers are attracted by incentives such as tax breaks, planning support, and the potential for profit from developing land in areas targeted for regeneration.

  2. 2

    How does existing infrastructure affect the success of local government policies in attracting inward investment?

    Model answer

    Areas with good existing infrastructure (transport, utilities, communications) are more attractive to investors as they reduce setup costs and improve operational efficiency.

  3. 3

    Why are workforce skills important for attracting inward investment?

    Model answer

    Investors seek locations with appropriately skilled workers to meet their operational needs; areas lacking relevant skills may struggle to attract certain types of investment.

  4. 4

    How does accessibility influence the success of attracting inward investment?

    Model answer

    Good accessibility via road, rail, air, or sea connections makes areas more attractive to investors who need efficient movement of goods, services, and employees.

  5. 5

    Why is the competitiveness of incentive packages important for attracting inward investment?

    Model answer

    Investors compare incentives offered by different locations; areas must offer competitive packages to win investment against rival locations offering similar or better terms.

  6. 6

    What is meant by a 'race to the bottom' in the context of local authorities competing for inward investment?

    Model answer

    Local authorities may progressively offer greater concessions (tax breaks, relaxed regulations) to outbid competitors, potentially undermining local revenues and standards.

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