PM-in-waiting Andy Burnham’s upcoming task of addressing regional disparities is expected to necessitate a level of investment that surpasses that of any recent leader, caution experts.
A report by the Resolution Foundation reveals that the income gap between affluent and impoverished regions has persisted over the past three decades. In London, Gross Household Disposable Income (GHDI) per person stands at £27,900, a figure significantly higher than Northern Ireland’s £17,300.
The disparity in disposable incomes is stark between the wealthiest and poorest areas. In Kensington and Chelsea, the figure is £60,584, which is more than four times the amount in Leicester at £13,398. This deep-rooted gap is prevalent across the nation, as highlighted by the organization.
Data shows that over half of the councils categorized in the lowest fifth for income per person in 1997 remained in that category in 2023, the most recent year for which data is available.
Ruth Curtice, Chief Executive of the Resolution Foundation, emphasized that the economic gap between affluent regions like Kensington and Chelsea and disadvantaged areas such as Leicester remains as wide as it was 30 years ago. While progress has been made in narrowing employment and pay differentials, the underperformance of major UK cities in driving economic growth persists.
Andy Burnham’s prioritization of regional inequality has been acknowledged, yet translating this vision into reality will demand substantial investments in transport, housing, and broader economic development on an unprecedented scale. Failure to address these disparities seriously will perpetuate the economic and political consequences of Britain’s geographic divides.
Following a recent speech where Burnham outlined plans for a significant transformation in governance, including establishing a “No10 North” hub in Manchester, he proposed empowering mayors and local leaders to drive progress from the grassroots level. This approach aims to shift away from centralized growth directives to localized nurturing of economic development.
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