The UK's regional income divide remains stubbornly persistent, despite decades of promises from governments to bridge the gap. This is the stark reality revealed by a recent report, which highlights the challenge for Andy Burnham, the prime minister-in-waiting, as he prepares to take the reins of government. The Resolution Foundation's findings paint a grim picture, showing that little progress has been made since 1997 in addressing the stark divisions in household income between the richest and poorest regions of the country.
The report's key finding is that the income gap between London and Northern Ireland has barely budged in three decades. In 1997, London's gross household disposable income per person was £27,900, while Northern Ireland's was £17,300. By 2023, these figures had only shifted slightly, with London's income at £27,900 and Northern Ireland's at £17,300. This persistent disparity underscores the depth of the regional income divide.
The report also highlights the stark income inequality at the local level. The gap between the richest and poorest areas is staggering, with disposable incomes in Kensington and Chelsea, the richest area, at £60,584, being four and a half times higher than in Leicester, the poorest area, at £13,398. This disparity has remained largely unchanged for almost three decades, indicating the depth of the entrenched divisions.
What's more, the report reveals that over half of the local authorities in the poorest fifth of places for income per person in 1997 were still in the same position in 2023, while 82% of the richest places had maintained their top status. This persistence of inequality, despite the promises of successive governments, is a stark reminder of the challenge that lies ahead.
The report also acknowledges some glimmers of progress, noting that the income gap between the richest and poorest tenth of local authorities has remained the same since 2019. However, it highlights the need for sustained investment in transport, housing, and regeneration projects to overcome the three decades of failure to tackle regional divisions in household income.
The Resolution Foundation's chief executive, Ruth Curtice, emphasizes the need for serious investment. She points out that Germany has allocated a staggering £70 billion every year for 25 years on post-cold war reintegration to help rebalance its economy, while the UK's 'levelling-up' spending in 2022 was a mere £4 billion. This disparity underscores the scale of the challenge that Burnham and future governments face.
Burnham's commitment to 'good growth in every postcode' and his advocacy for devolution, investment in transport and social housing, and greater public control over utilities are steps in the right direction. However, the report's findings serve as a stark reminder that these efforts will need to be backed by substantial investment if the UK is to address its deep-rooted regional income divide.
