THE GREAT WEALTH GAP

How the richest parts of London generate 30 times more cash than the poorest areas of the UK

THE Square Mile generates more than 30 times as much wealth per person as the poorest regions of Britain, figures show.

Camden and the City of London was the UK’s most productive area in 2017, generating £340,340 per head, according to the Office for National Statistics (ONS).

By contrast, the population of the Northern Irish district of Ards and North Down generates only £9,862 per head. Others in the bottom ten included Wirral, where output was £15,598 per head, Anglesey at £13,957 and Torbay at £15,553.

The figures highlight the huge disparity between the capital and the rest of Britain.

They will provide fuel for critics who believe more investment is urgently needed outside London to boost productivity and employment. The ONS figures measured ‘gross value added per head’ – the income generated in an area, divided by how many people live there.

The best three performers are all London boroughs – Camden and the City, Westminster with £257,265, and Tower Hamlets with £96,923. Isolated rural areas tend to come bottom of the table because they are typically dominated by industries such as farming where profits are lower.

Large cities generate more wealth because they are home to lucrative professions. Higher investment in an area can make a difference and allow its workers to make more money.

For example, improving broadband coverage in the countryside can allow profitable small businesses to thrive because entrepreneurs work from home.

Across the UK, the average person generated £27,555. At a regional level, London produced most wealth per head at £48,857. Wales came in worst at £19,899.

Former Chancellor George Osborne sought to give areas outside the capital a boost with his Northern Powerhouse programme, aimed at lifting investment in the regions but this has stalled as ministers focus on negotiating Brexit.

Daniel Pryor, of the free market Adam Smith Institute, said: ‘There’s a gulf and it’s a serious problem. It’s not just about economics – this is very much a political issue too, because politicians have to show they can appeal beyond London and reach these regions, and care about living standards there.’