Key facts
- A Resolution Foundation report states that the UK's regional income divide has seen virtually no progress in 30 years.
- Household disposable income in London is 60% higher than in Northern Ireland.
- The income gap between the richest and poorest local authorities has remained static.
- More than half of the poorest areas in 1997 were still among the poorest in 2023.
- Manchester's income per person grew 40% in real terms since 1997 but still trails London.
- The report calls for substantial investment in transport, housing, and regeneration to tackle these divisions.
A new report from the Resolution Foundation reveals that the significant regional divide in household income across the UK has seen almost no improvement in 30 years, despite repeated government pledges to address it. The findings highlight the challenge for Andy Burnham, who aims to rebalance prosperity through devolution.
According to the report, between 1997 and 2023, the average gross household disposable income per person in London remained 60% higher than in Northern Ireland. At a local level, disposable incomes in the wealthiest areas were four and a half times higher than in the poorest, a gap that has persisted for nearly three decades. More than half of the local authorities that were in the poorest fifth for income in 1997 remained so in 2023, while 82% of the richest areas stayed at the top.
The report notes that these stark income gaps have endured despite various government initiatives, including Boris Johnson's 'levelling-up' agenda. While some progress has been made in areas like employment growth and economic productivity in certain cities such as Manchester, the overall income gap between the richest and poorest tenth of local authorities remained unchanged between 2019 and 2023.
Manchester's gross household disposable income per person grew by 40% in real terms between 1997 and 2023, but its income level still significantly trails London and other major northern English cities. The Resolution Foundation emphasizes that achieving 'good growth in every postcode,' as pledged by Burnham, will require substantial investment in transport, housing, and regeneration projects on a scale not seen in recent political history.
Ruth Curtice, CEO of the Resolution Foundation, stated that while Manchester's revival shows 'decline is not destiny,' Britain's major regional cities continue to underperform. She stressed that without serious investment, the economic and political costs of these geographic divides will persist.