... operates. Regional policies have become an enduring feature of the UK's political geography (MOHAN, 1999), spatial policies have become commonplace. To explore the changing nature of the state, a definition of the State needs to be established. The same is true for the phrase 'regional problem', and how this has been resolved or worsened through state policies. Most state regional policies are directed at aiding depressed or declining industrial areas, in particular those with high level of unemployment. In addition to this many governments invest new developments in peripheral areas where resource bases may not have been utilised in the past. (JOHNSTON, 1977) The key to assessing the changing role of the state is to look at the hollowing out of the state and transition from one nation politics to two nations, and the future possibilities with Blair's 'Third Way. This needs not only an understanding of changing conditions within ...

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