The damaging reality of the north-south divide

Political editor

A DAMNING new inquiry into the state of the North has concluded that the UK is the most regionally divided and centralised country of its size and level of development in the world.

The IPPR North study comes after all the major parties published manifestos vowing to close the north-south divide by investing in infrastructure and devolving power out of London.

It reveals the scale of the work that needs to be done by any future government that is serious about closing the gap in wealth, productivity and life expectancy.

But today’s report also highlights some of the progress made, including the creation of a new North of Tyne regional authority and mayor.

Luke Raikes, the report’s author and senior research fellow at IPPR North, said: “It is no surprise that people across the country feel so disempowered. Both political and economic power are hoarded by a handful of people in London and the south east and this has damaged all parts of the country, from Newcastle to Newham.

“Low investment holds back regions like the North, Midlands and South West, while centralisation has let London’s housing crisis drive up poverty in the capital.

“All our regions’ economies have been held back by centralisation – but they’re interdependent too and we can no longer ignore that. All our regions need devolution to be empowered, and to work together. This must be a top priority for the next government.”

Key findings from the IPPR North study include:

■ The health divide is larger than any com- parable country – rates of mortality vary more within the UK than in the majority of developed nations

■ The jobs divide is larger than any comparable country – where you live makes a big difference to your opportunities for work. Job creation rate is far higher in London and the south east than any other part of the UK.

■ The disposable income divide is larger than any comparable country and has increased over the last decade.

■ The UK’s productivity divide is larger than any comparable country. If you live in parts of London and the South East, your economy is among the most productive in the developed world, whereas parts of Northern Ireland, Wales and the North of England are less productive than parts of Poland, Hungary and Romania.

The report states: “We are not the only country to have regional divides, but our regional inequalities in productivity, income and health are far worse than in any comparable country.”

It warns that while the north-south gap is real, there is also extreme poverty in parts of London and in the south west of England, and the problem is made worse by the fact that power in the UK is more centralised than any comparable country.

But the researchers said these problems aren’t insurmountable, and highlighted the success of Mayors in recent years. The report said: “In the North of Tyne Combined Authority, Mayor Jamie Driscoll took office only a few months ago, in May 2019. And yet, since his election, the new mayor has sought to put into practice radical ideas that can benefit the region.”

This included beginning the process of creating a “People’s Bank”, to ensure banking profits are retained in the North East, and working to bring environmental education to every school in the North of Tyne area, which covers Newcastle, North Tyneside and Northumberland.

Arianna Giovannini, Interim Director of IPPR North, said: “The next government must lead a Devolution Parliament – an unprecedented and irreversible shift of power – so England’s regions, towns and cities can work together to bridge our regional divides.”

The Northern Powerhouse 11 (NP11), which represents businessled local enterprise partnerships across the North, welcomed the findings.

Roger Marsh, Chair of the NP11 Board, said: “IPPR North is right to emphasise that empowering the North and other regions outside of London to collaborate with pounds and powers through devolution – rather than the current system which encourages competing for resources from the centre – is the most effective way to unleash our collective potential.”

Luke Raikes

All our regions’ economies have been held back by centralisation - but they’re interdependent too