PM-in-waiting Andy Burnham’s push to address regional disparities will necessitate a level of investment that surpasses what recent leaders have attempted, according to experts.
A report from the Resolution Foundation reveals that the income gap between affluent and impoverished regions has remained notably wide for three decades. London boasts a Gross Household Disposable Income (GHDI) per capita of £27,900, a figure that is 60% higher than Northern Ireland’s £17,300.
In the wealthiest local area, Kensington and Chelsea, disposable incomes reach £60,584, a staggering four-and-a-half times more than the lowest in Leicester at £13,398. The foundation noted that these disparities are deeply ingrained across the nation.
Over half of the councils in the bottom fifth for income per person in 1997 still found themselves in that category in 2023, based on the latest data available.
Ruth Curtice, Chief Executive of the Resolution Foundation, highlighted the enduring gap between affluent areas like Kensington and Chelsea and deprived areas like Leicester, emphasizing that the divide remains as stark as it was 30 years ago.
While there have been improvements in employment and wage differentials, Manchester’s resurgence stands out as a positive example against decline. Nonetheless, major UK cities, once engines of national economic progress, continue to lag. Andy Burnham, the incoming PM, has rightly prioritized addressing regional inequality.
According to Curtice, the realization of these ambitions hinges on substantial investments in transportation, housing, and broader economic development, a scale unmatched by recent political leaders. Neglecting this crucial investment could perpetuate the economic and political repercussions of Britain’s geographical disparities.
These developments follow Burnham’s recent commitment to revamp the country’s governance system, promising the most significant rebalancing of power in the nation’s history.
Introducing plans for “No10 North” to be headquartered in Manchester, Burnham envisions it as the nerve center of a reinvigorated Britain that will drive the revitalization of marginalized communities.
He also announced intentions to delegate powers to mayors and local leaders, emphasizing the need for Whitehall to acknowledge that growth cannot be dictated from the top down but must be fostered from the grassroots level.
