Hello, my name's Mrs. Tomassi and I'm gonna be working with you on your citizenship lesson today.

If you've got everything you need, you're all settled and you're good to go, then we'll be able to make a start.

Today's lesson title is: How does the local economy affect our lives? And this forms part of the unit on: How can the local economy support sustainability? Hopefully by the end of the lesson today, you will be able to explain what the local economy is, how it changes, and what impacts it.

There are three keywords in this lesson that you'll find.

The first one is local economy, this means all business activity, and wealth creation in a specific area, town, or community.

Public services, which is essential needs provided by the government or local authorities to meet the needs of the public, such as healthcare, education, transportation, and safety.

You then have local government, which is a system of government that operates at a local level providing services to its community.

If you ever need to, you'll see these in bold throughout the lesson and you can refer back to them here.

So we'll make a start with the first of the three learning cycles today, which is: What is the local economy? So the economy is the state of a country or region in terms of the production and consumption of goods and services and the supply of money.

So it's talking specifically about goods and services here and how that affects the supply of money.

The economy can be seen as all business activity and wealth creation in the country.

In a constant state of change, the economy fluctuates and the Treasury tries to steady it by balancing the Budget.

So when we say fluctuates, it means that it can go up and down depending on whatever the change is that happens.

And it is the Treasury that are trying to balance it to try and keep it even.

This is what we'll see a bit in the lesson.

So the word local means something that relates to a specific area, town or community, therefore the term local economy, can you have a think then what that might mean? This is specifically about all that business activity that we are talking about, the goods and services, that are relevant to a specific area.

Did you manage to get that? So local, specific area, economy, all business and wealth creation.

Therefore the local economy is then the business and wealth creation in a specific area.

So it refers to the way money, jobs, and businesses operate within that area.

It includes all the businesses, workers and consumers who contribute to the economic activity of that place.

So people working in local businesses earn wages and then they spend the money on the goods and services in that area.

So the idea is then they are contributing.

So can you have a think of any, if you think about your own area, any businesses or goods and services that might be contributing to the local economy, can you think of any? So this even includes things like the small independent shops, the large supermarkets, restaurants, even the public services like schools and hospitals.

Did you manage to get any of them? Hopefully you did.

And we're gonna talk more about these in this lesson.

This, so the strength of a local economy depends on how much money is being made and spent within that community.

Can you think if it's gonna be stronger, there's probably more money being made and spent, and then if the economy's gonna be weaker, then there's gonna be less.

Check for understanding now.

Fill in the missing words in these sentences.

The local economy is how.

jobs and businesses operate in a specific area.

When people earn wages and.

locally, it supports businesses.

A strong local economy depends on how much money is.

and spent in the community.

Did you manage to get it? So it's how money jobs and businesses operate, wages and shop locally, and then how much money is made and spent in the community.

Well done if you've got that.

Now we're gonna move on.

Local businesses are an essential part to the local economy.

Yeah, 'cause if we think about what an economy is, they are at the heart of producing goods and allowing people to spend on goods.

So they create jobs and they keep the money circulating within the area.

When people shop locally, instead of buying from the large online retailers, they help these businesses stay open and expand.

So remember we're talking about the local economy, they're the specific areas.

If you are buying and using them, then it means that the business can continue.

So to give you an example now, if you look at cities like Bristol, independent businesses and local markets thrive, the economy benefits from things like tourism, creative industries, and local spending.

But in contrast, areas where small businesses struggle may experience economic decline.

Can you think what decline might mean? So this is the idea that maybe the economy's not going to be so good because there'll be fewer job opportunities and shops might close.

So you might live in an area maybe which might be thriving, or you could have a look, have some of the shops closed? Are there some spaces? Maybe there's space for that local economy to grow.

Now, when we're talking about local economy, we also talk about the local government.

This is because they play a significant role in managing the local economy.

They set policies that affect businesses, transport and public services.

So they could offer startups.

Now what that is, is if somebody wanted to start up a new business, they might offer them some grants to support and money to get them started with that business.

They could lower business rates.

So that's the, like the tax that the businesses pay.

Or they could improve roads and public transport to attract more people to come to that city or to that town.

So to give you an example, in Manchester, investment in infrastructure and new business districts has boosted the local economy by making it easier for companies to grow and employ more people.

On the other hand, if an area lacks good transport links or support for businesses, then the local economy can suffer.

Hopefully you're starting to get the idea now of what might build a local economy and the things that might then cause a local economy to suffer.

And and that links back to what we were talking about earlier when we say that it fluctuates.

So public services also contribute to the local economy.

Can you remember what public service is? So these are your schools, hospitals, emergency services because they employ thousands of people and their funding depends on local and national taxes.

So if a town has good public services, again, it's gonna attract more people to want to come there, and then it helps to create that cycle, yeah? So we've got the businesses, if they're all booming, people are gonna be attracted to it.

If an area's got lots of services on offer, again people are gonna be attracted to it, they're then gonna spend in that area and that helps to create this cycle.

However, again, if we look at the downside in terms of fluctuation, if funding is cut, jobs are lost, and local businesses may suffer as fewer people have a disposable income.

Now when we talk about disposable income, we're saying once they've paid all their bills and all their needs, it's the money they're left over with.

And if they haven't got much, it might be the local businesses that then suffer.

So to give you an example, the decline of steel production in South Wales led to job losses.

This impacted the spending in the wider community.

'Cause if people haven't got that money, then they're not gonna spend it.

So Jun says, "Why did steel production decline in South Wales? That must have been terrible for the people losing their jobs." Izzy says, "It was mainly due to the change of using electric in steelmaking, strong overseas and high input costs.

In 2024, it declined dramatically." So the local economy is mentioned a lot around election time by both the national government and local governments.

Many candidates' manifestos will build some of their election promises around the local economy.

Can you think why that might be? So as we were saying, it involves a lot of different stuff in a lot of different areas.

So it's very important to people.

So it can be a very important issue, as it affects everyone on a direct level in their local communities.

This means it can become emotive.

Do you have an idea what an emotive issue might be? These are ones that might, you might have heard the word emotions.

So if they're gonna cause people to feel quite passionately or maybe they could feel the other end, they could feel quite angry or disheartened with it as well.

Therefore, it can affect how citizens choose to vote.

Questions will be asked to candidates and the media alike: How will money in the local economy be spent? What new community initiatives will be funded? Will there be a cut to public services? And will taxes be raised? These are some of the questions that might get asked.

So can you match the term with their descriptions? One: local businesses, two: economic decline, three: infrastructure investment, and four: public services.

Which one does it match to: A, B, C, or D? Give you some time to match them And then we'll go through the answers.

How did you get on with that? So one: local businesses, that helps keep the money in the community.

Economic decline is when small businesses struggle and jobs are lost.

Infrastructure investment attracts businesses and boosts employment; and public services are schools, hospitals, emergency services, et cetera.

Well done if you manage to get that.

And we will now move on to the first task for the lesson today.

So can you write a short paragraph that answers the question: What is the local economy and why is it important? Include these terms in your answer: So businesses, jobs, money, community, and public services.

If you take some time now and then when you are finished, you can un-pause and we can go through it together.

So how did you get on with that? Now you could have said something like this: The local economy is how money, businesses and jobs work together in a community or local area.

The local economy is all businesses and wealth creation within that specific area.

People earn money from their jobs and spend it on goods and services, helping businesses stay open.

When businesses do well, they create more jobs, which means more people can earn and spend money.

The local economy also helps fund public services like schools and hospitals through taxes.

A strong local economy makes life better for everyone by providing work, services and opportunities for the community.

If you managed to get something like that, brilliant.

Maybe you managed to add some more in and think of some different ideas, that would be great as well.

Now we're gonna move on to the second learning cycle.

So we've looked at what the local economy is, we're gonna look at: How does the local economy change? So this is more about that fluctuation that we were talking about earlier.

So the local economy, just like the country's national economy, does not stand still.

The local economy is constantly changing due to different factors.

Things like new businesses opening, industries growing or declining, and people's shopping habits evolving.

Some areas see economic growth when new companies bring jobs and investments, while others struggle if businesses close down.

Local government decisions, technology and even global events like recessions or pandemics can also have a big impact.

There are so many different ways that can impact the economy, and especially if we're talking about local economy as well.

There are specific things in different areas, how the economy in those areas is impacted.

So understanding how it changes helps us see why some towns and cities thrive and others might face challenges.

The big one is technology and online shopping because they have transformed local economies.

There are more people buying from large online retailers rather than high street shops.

So some of them are struggling to survive.

Towns and cities have had to adapt and invest in different experiences.

Things like food markets or escape rooms, maybe services that cannot be replaced by online shopping.

To give you an example now, in Sheffield, new cultural attractions and independent shopping areas have helped to revive parts of the city that were once in decline.

Local economies that embrace change and innovation are often more successful in the long run.

Have you got an idea of what innovation is? So it's that idea that they're coming up with new ideas and new ways of doing things to embrace that change and that challenge.

Check for understanding now.

Can you decide whether these statements describe a positive economic change, a boom or a negative economic change, a bust.

Write boom or bust next to each one.

I'll read them out for you and then you can work them out and then we will go through the answers after.

A: A large tech company moves into an area, creating new jobs and investment.

B: A major factory closes, leading to unemployment in the community.

C: Many local high street shops close due to the rise of online shopping.

D: A town invests in food markets and entertainment to attract more visitors.

And E: New businesses open, increasing job opportunities and local spending.

So we will go through them.

That first one is a boom.

And then we've got B, so the factories closing, that is a bust.

The third one, C is a boom, D is a bust and then E is a boom.

Did you manage to get them? Great job if you did.

Now government policies and investment decisions also shape the way local economies develop.

So local economies can encourage growth by improving transport links, offering business incentives or invest in regeneration projects.

For example, so the redevelopment of the London Docklands transformed a previously economically disadvantaged area into a major business hub, which in turn created thousands of jobs.

Local authorities only offer limited support to businesses and workers, then it means it could experience economic decline, which could lead to the rise in unemployment and poverty.

So it's also in the local authority's interest to help the local economies to develop.

And then we've got global events and economic crisis.

They can have an impact on local economies.

So to give you an example, if we looked at the COVID-19 pandemic lockdowns, they caused many small businesses to close.

Now that of job losses and financial struggles for many communities.

However, it also encouraged new business models such as takeaway food services and remote working, which have changed the way local economies function.

So if we go back to the idea before, sometimes then, out of struggles comes innovation and some people embracing the change and then can also help other areas to thrive.

This is again coming back to that idea of the fluctuation and how the economy constantly changes.

So seaside towns like Blackpool, restrictions on travel reduced the tourism income, which meant a decrease in their local economy.

However, the rise of domestic holidays, so the idea of staycations, later helped to boost the economy.

Tourism in London also became popular because many offers were given to the public to encourage them to visit landmarks like the Tower of London.

And this shows how the local economy is influenced by national and international trends.

Again it's coming back to the idea that the local economy continues to fluctuate up and down.

Can you change one word in each statement to make it correct? One: Local government can encourage growth by reducing transport links, offering business incentives or investing in regeneration projects.

Two: The redevelopment of the London Docklands transformed a previously booming area into a major business hub, creating thousands of jobs.

Three: In seaside towns like Blackpool, restrictions on travel increased tourism income, but the rise of domestic holidays later helped to boost the economy.

See if you can change one word in each statement and then we'll go through it together.

How did you get on? So we've got the first one.

If you changed it to improving transport links transformed a previously rundown area.

And in the final one, restrictions on travel, reduced tourism income.

Brilliant if you've got that.

And that leads us onto our second task: Read the scenarios that can happen to change a local economy.

Complete the table.

So you've got one side, large supermarket opens, major factory closes down, new transport links are made, and local shops have no customers.

And the other side, can you work out what impact that has on the community? Take some time and then when you're ready, un-pause and we'll go through it together.

How did you get on? So for the large supermarkets, your answer could have included that it provides jobs and makes it harder for local shops to compete.

This isn't limited.

You could have come up with loads of different responses as well.

And you could have given some either more positive or negative ones as well.

Major factory closes down, people could lose their jobs.

So unemployment rates rise.

Previous workers might find it hard to find new jobs, and the environment benefits from less fumes.

And then the new transport links makes it easier for people to get to work and attracts people to businesses who thrive as a result.

And then local shops have a falling number of customers.

People can't shop locally.

Members of the community with access difficulties or mobility restrictions might suffer.

Now you should have a little bit better understanding now of how the local economy changes.

So we'll move on to our final learning cycle for today, which is: What impacts the local economy? So employment levels are one of the biggest factors affecting a local economy.

When we say employment levels, what does that mean? These are the amount of people in work.

So when people have secure, well-paying jobs, they're more likely to spend more in their community.

So if you think actually, if there's any time that you've had something and you've got actually quite a bit of money left over after you've got what you wanted, then you might be more likely to go, "Oh, okay, well I can go and spend it on this and this as well." But on the other side, if you're like, actually you've had the times where it's like, "Oh, I've only got this amount," then maybe you are less likely to want to spend any more.

And this is the example here.

When there are high levels of unemployment, people have less money to spend, which can lead to business closures and economic decline.

Example, in former industrial towns like Middlesbrough, job losses in manufacturing have led to economic struggles.

However, new opportunities in Middlesbrough have arisen, which has resulted in a steadier economy.

Again, remember this idea, it's constantly going up and down.

And if you think about the economy, you can think about a situation maybe that's happened, that's not so good.

Could you see the positive that's come out of it? Maybe have a look at your own local areas to see if there are any situations that have impacted the local economy there.

Another example here.

Teesside Freeport is the UK's best-connected Freeport.

It links global markets, trade hubs, and offshore projects.

It's also home to one of Britain's biggest industrial economies, backed by a skilled workforce.

So this shows you actually how it can go from a decline and there can be positive that comes out of it.

Have a look in your own local areas.

Are there any situations maybe that have declined the local economy and are the only ways that they've come out of it? And you've seen the upside or if you've seen how the economy's grown again.

So cities with diverse industries, such as Leeds, have seen steady growth.

For example, in March, 2025, residents of Leeds can access the Money Information Centreon which discusses a range of money related matters such as debt, money, energy, and utilities.

This helps its residents to get support with the higher cost of living.

Government policies can also play a major role in shaping the local economy.

Decisions about taxation, business rates, investment in public services can either boost or weaken an economy.

Hopefully you're getting the idea now as well that decisions can go either way.

Now this decision that's made on taxation could impact one area positively, but it could impact another area negatively.

It again, it depends because each area is specific and has their own specific needs and ways they work.

So if the government increases the minimum wage, workers have more spending power, which benefits local businesses.

However, if taxes on businesses rise too much, some may struggle to survive.

Local government can impact the economy by deciding how much funding goes into its services.

So the things like transport, housing and education.

Check for understanding now.

Read the paragraph below and circle the correct words in the brackets to complete the sentences about the impacts on the local economy.

I'll read them through for you and then you can circle the correct ones.

So having jobs with good wages to help the local economy.

'Cause people can spend more money in their.

supporting businesses and services.

High levels of.

mean people have less money to spend, which can lead to.

Some towns struggle due to job losses in.

whilst cities with.

tend to grow more steadily.

Take some time and circle the correct word.

Did you manage to get secure jobs? Their own community, high levels of unemployment lead to business closures, job losses in manufacturing.

And the final one is cities with diverse industries tend to grow more steadily.

And we'll move on a little bit now to have a look at some infrastructure and transport links.

So these are crucial to a strong local economy, and this is because if an area's got good roads and rail connections, public transport, there's more likely to invest in there.

Have a think about your local area.

What have you got around you? Have you got good rail connections and roads, public transport? Can you get around? What does that mean? Does it mean that you're able to go out to more places? And if you haven't, again, what does that mean? Does it mean that it's more difficult to get to like local shops and businesses and et cetera? 'Cause that will help to show you how that impacts the local economy.

So as an example, the extension of the Elizabeth Line in London, it's improved transport links and it makes it easier for people to access jobs and businesses.

In contrast, areas with poor transport may struggle to attract investment and that can lead to economic stagnation.

Now that's this idea that if it stagnates, it's just kind of flat and it's not really gonna go anywhere because you haven't got the people, the additional people being able to come in and to help invest in the area.

And finally, the public services have a direct impact on local economies.

Can you think of any reasons why? So if we think about some of those services like the schools and colleges, we touched on it earlier.

If an area's got great skills and you've got young people coming through with great skills.

You've got the healthcare that is thriving, people are gonna be feeling fit and healthy, then what's gonna happen in terms of local economy? Hopefully you've got it.

It's gonna continue to improve.

However, if we look at the other side, if public services are cut and we haven't got it, then what happens there? Then it's going to decline.

People aren't feeling as good, et cetera.

Areas with strong public services, such as Edinburgh, have high levels of education investment to create a thriving economy.

And now we're gonna do a check for understanding.

So sort the four statements into the correct categories.

So are they boost the local economy or do they weaken the local economy? Increasing the minimum wage, giving more people more spending power.

Raising taxes too much on local businesses.

Investing in public transport to make commuting easier.

Cutting funding for schools and healthcare services.

See if you can work out which category they fall into.

Did you manage to work out? So the boosting one was increasing the minimum wage and investing in the transport.

The weakens was raising taxes too much on businesses and cutting funding for schools and healthcare services.

Now this moves us onto the final task for today's lesson.

Below are four key factors that impact the local economy.

Each one, can you explain how it can either help or harm a community? So you've got employment levels.

How do job opportunities or a lack of them affect businesses in spending in a town? Government policies, how taxation, business rates or investment in public services influence the local economy.

Infrastructure and transport.

Why do good roads, rail links and public transport matter for businesses and workers? And public services.

How do well-funded schools, hospitals and other services impact the economy of a town or city? Again, remember, you can choose how it helps or harms the community and then explain why.

Will you take some time now so you can go through each one individually and then when you're ready, we'll feed back together.

So how did you get on? Now, for the first one, with the employment levels, you could have said: Having plenty of job opportunities helps a local economy 'cause people have money to spend on goods and services, which support local businesses.

When businesses do well, they can hire more staff, creating a cycle of economic growth.

However, if a town has high unemployment, people have less money to spend, leading to business closures, more job losses and economic decline.

Industrial towns like Middlesbrough have struggled due to the job losses in manufacturing.

While cities with more diverse industries like Leeds tend to have stronger local economies.

Now for government policies, you could have said: The government and local government can shape the local economy through taxation, business rates and investment in public services.

If the government raises the minimum wage, workers have more money to spend, which can help businesses grow.

However, if taxes on businesses are too high, some may struggle to survive or move elsewhere.

Local government can also encourage economic growth by investing in services such as education and transport, which attract businesses and workers.

For the third one, infrastructure and transport, you could have said: Good transport links help businesses and workers by making it easy to travel to jobs and attract customers.

For example, the extension of the Elizabeth Line in London has improved access to workplaces and boosted local economies.

If transport links are poor, businesses may struggle to hire staff and fewer customers will visit shops, leading to economic decline.

Investing in better roads, rail links and public transport could encourage companies to set up in an area, create jobs, and boost the economy.

Now for the final one, you could have said: Public services such as schools, hospitals, and emergency services play a major role in supporting the local economy.

Well-funded schools provide young people with the skills they need to get jobs while hospitals keep the workforce healthy and productive.

If public services are cut, people may move away in search of better opportunities, weakening the economy.

Now how did you get with that? Obviously these are examples you could have actually been able to link any of them to help or to harm a community.

So brilliant work if you managed to get some of those ideas across.

Now that brings us to the summary of today's lesson.

We've gone through a lot about the local economy today.

So hopefully you have a bit of a better understanding, and that is: The local economy is how money, businesses, and jobs operate within a community, with people earning and spending money to keep it running.

Local economies change due to new businesses opening, industries growing or declining and consumer habits shifting, with technology and online shopping having a big impact.

Factors like employment levels, local government policies, transport and public services influence how well a local economy performs. Local government investment in infrastructure, business support and public services can strengthen an economy, while high unemployment and poor transport links can lead to decline.

A strong local economy benefits everyone by creating jobs, supporting businesses, and funding public services, improving quality of life.

So that brings us to the end.

Great work.

And thank you so much for working through with me today and learning about how the local economy affects our lives.

Enjoy the rest of your day.