The UK's regional income divide remains stubbornly persistent, despite decades of promises from governments to bridge the gap. This is according to a recent report, which highlights the ongoing disparity in household income across the country, even after accounting for housing costs. The findings are particularly damning for Andy Burnham, the prime minister-in-waiting, who has pledged to achieve 'good growth in every postcode' through a devolution agenda. However, the Resolution Foundation's report suggests that Burnham's plans may fall short without significant investment in transport, housing, and regeneration projects.
The report reveals that the income gap between London and Northern Ireland has barely changed since 1997, with London's gross household disposable income per person remaining three-fifths higher than in Northern Ireland. This disparity is even more pronounced at the local level, where disposable incomes in Kensington and Chelsea are four and a half times higher than in Leicester. The report notes that over half of the local authorities in the poorest fifth of places for income per person in 1997 were still in that position in 2023, while 82% of the richest places had maintained their top status.
The persistence of these income gaps is a stark reminder of the challenges of rebalancing Britain's economic geography. Despite the 'levelling-up' agenda under Boris Johnson and other governments, the income gap between the richest and poorest tenth of local authorities has remained unchanged since 2019. However, the report does highlight some areas of progress, such as narrowing local pay gaps and jobs growth in traditionally low-employment areas.
Manchester, a city that has seen economic growth, serves as a counterexample to the broader trend. The city's gross household disposable income per person has grown by 40% in real terms since 1997, but it still lags behind London and other major northern cities. Ruth Curtice, the chief executive of the Resolution Foundation, emphasizes the need for sustained investment to address regional inequality. She notes that the UK's 'levelling-up' spending in 2022 was just £4bn, a fraction of the £70bn allocated by Germany for post-cold war reintegration.
In my opinion, the report's findings are a wake-up call for policymakers. The UK's regional income divide is a complex issue that requires a multi-faceted approach, including investment in infrastructure, education, and social services. While Burnham's devolution agenda is a step in the right direction, it must be accompanied by substantial financial commitment to truly transform Britain's economic landscape and ensure 'good growth in every postcode'. The challenge is not just about political ambition but about the resources and strategies needed to make a tangible difference in people's lives.
