The paper examines the changing regional specialisation of UK employment ov
er the period 1971-94, analysing the extent to which UK regional policy has
altered the industrial structure of the Assisted Area regions, making them
less vulnerable to economic change. All regional economies are found to ha
ve become more specialised, but industry has become less geographically con
centrated leading to a convergence of regional industrial structures toward
s the national pattern of employment. These trends are stronger in the Assi
sted Areas, and have been promoted by the operation of regional policy, but
the major policy effect occurs through the large-scale capital grants whic
h have accelerated the employment decline of the traditional manufacturing
industries in which the Assisted Areas were relatively over-represented.