Almost no progress made on UK regional household income divide in 30 years, report finds
Summary
A report finds that the gap in household income between rich and poor areas in the UK has not improved much in the last 30 years. Despite government promises, incomes in wealthier places like London remain much higher than in poorer regions. The report says big investment in transport, housing, and regeneration is needed to reduce these regional income differences.Key Facts
- From 1997 to 2023, London’s average household income was about 60% higher than Northern Ireland’s.
- The richest local area (Kensington and Chelsea) has incomes over four times higher than the poorest area (Leicester), a gap stable for nearly 30 years.
- More than half of the poorest local authorities in 1997 are still among the poorest in 2023; 82% of the richest places remained wealthy.
- Some cities like Manchester have seen income growth of 40% since 1997 but still lag behind London and other major northern cities.
- Employment has grown most in low-employment areas, and pay gaps narrowed partly due to the rising minimum wage.
- Andy Burnham, the likely next prime minister, plans to focus on local growth and economic rebalancing through investment and devolution.
- Britain’s investment in regional economic rebalancing is much lower than countries like Germany, which spent roughly £70 billion yearly on similar efforts.
- The report states that serious, sustained funding is necessary for reducing deep economic divides across UK regions.
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