PM-to-be Andy Burnham’s upcoming challenge to address regional inequalities is expected to demand a level of investment that surpasses previous leaders, according to experts.
A report from the Resolution Foundation highlights that the income gap between affluent and deprived regions has persisted for three decades. London’s Gross Household Disposable Income (GHDI) per person stands at £27,900, a significant 60% higher than Northern Ireland’s £17,300.
The disparity in disposable incomes is stark, with Kensington and Chelsea reporting £60,584, a staggering four-and-a-half times more than Leicester’s £13,398. This inequality is deeply embedded across the nation, with over half of the councils in the lowest income bracket in 1997 remaining there in 2023.
Ruth Curtice, the Chief Executive of the Resolution Foundation, emphasized that the wealth gap between areas like Kensington and Chelsea and Leicester remains as pronounced today as it was 30 years ago. While progress has been made in narrowing employment and pay gaps, major cities in the UK continue to underperform economically.
Andy Burnham’s focus on regional inequality has been commended, with calls for substantial investment in transportation, housing, and broader economic development to make the ambition a reality. Failure to address these issues seriously could perpetuate the economic and political repercussions of the UK’s geographical divides.
In a recent speech, Burnham outlined plans for a “No10 North” headquarters in Manchester, aiming to decentralize power and empower local communities. He stressed the need for a bottom-up approach to nurture growth, rather than top-down directives from Whitehall.