Wednesday, 23 October 2013

London's Economic Boom Leaves Rest of Britain Behind

THE GUARDIAN: Exclusive: Guardian analysis highlighting regional imbalance raises troubling questions about who is enjoying UK's recovery

London's economy is doing even better after the banking crash than during the bubble – while nearly every other part of the UK has seen its economy shrink by comparison. Exclusive findings published by the Guardian show that London and the south-east are racing away from the rest of the UK at a pace that would have seemed almost incredible at the height of the financial panic.

During the boom from 1997 to 2006, London and the south-east was responsible for 37% of the UK's growth in output. Since the crash of 2007, however, their share has rocketed to 48%. Every other nation and region – with the exception of Scotland – has suffered relative decline over the same period. The upshot is about a quarter of the population is responsible for half of the UK's growth, leaving the remaining three-quarters of Britons to share the rest.

The research also shows that the UK's highest-earners have become relatively more prosperous after the crash, while many on middle incomes are being squeezed hard. In austerity Britain, the top 20% of earning households are enjoying 37.5% of all Britain's income growth, even after accounting for taxes and benefits. » | Aditya Chakrabortty | Wednesday, October 23, 2013

My comment:

It's surely time for some good old-fashioned regional economic policy à la Harold Wilson. Monies will then be re-distributed to poorer regions of the UK in order to boost industrial production (where there is any industry left), and certainly to boost economic activity in those regions. – © Mark

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