A report by the Resolution Foundation revealed that Britain's regional income divide has seen almost no progress in the past 30 years. The study indicated that despite various government efforts to address income inequality, the gap between the richest and poorest regions has remained largely unchanged since 1997.
Key Details
The report highlighted that gross household disposable income per person in London stood at £27,900, which is three-fifths higher than Northern Ireland's £17,300. Additionally, the wealth disparity at local levels persists, with Kensington and Chelsea's disposable income at £60,584 being four and a half times higher than Leicester's £13,398.
The findings showed that over half (54%) of local authorities in the bottom fifth for income per person in 1997 remain in that category today. Conversely, 82% of the wealthiest areas have maintained their status. The report criticized past governments for failing to effectively rebalance the country's economic geography, including the initiatives under Boris Johnson's “levelling-up” agenda.
Andy Burnham, the anticipated future prime minister, has committed to achieving “good growth in every postcode” as part of a devolution strategy. However, the foundation emphasized the need for substantial investment in transport, housing, and regeneration projects to address the entrenched income disparities.
Background
The report's findings underscore the challenges ahead for Burnham as he seeks to implement policies aimed at reducing regional income inequality.
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The ongoing income disparity may influence consumer spending patterns and regional economic policies, particularly in sectors such as housing and local services. Investors will watch for any upcoming announcements from the government regarding investment plans aimed at addressing these inequalities.