Experts have warned that Andy Burnham's mission to tackle regional inequalities will require investment on a scale that no recent leader has come close to meeting, according to the Resolution Foundation think-tank. The foundation's analysis shows that the regional income gap between rich and poor areas in the UK has remained stubbornly high for 30 years.
Stark Disparities in Disposable Income
Gross Household Disposable Income (GHDI) per person in London is £27,900 – three-fifths higher than in Northern Ireland, where it stands at £17,300. The gap is even more pronounced at the local level: disposable incomes in Kensington and Chelsea, the highest income area, are £60,584 – four-and-a-half times higher than in Leicester, the lowest at £13,398. The foundation described these gaps as "deeply entrenched throughout the country."
Persistence Over Decades
More than half of the councils in the poorest fifth for income per person in 1997 were still in that position in 2023, the latest year for which data is available. This highlights the long-term nature of the problem. Ruth Curtice, Chief Executive of the Resolution Foundation, said: "The gap between rich places like Kensington and Chelsea and poor places like Leicester is just as high today as they were 30 years ago."
She noted some positive developments: "There are bright spots. Employment and pay gaps have narrowed, and Manchester's remarkable revival shows that decline is not destiny. But the UK's major cities, once the powerhouses of national economic growth, continue to underperform."
Burnham's Pledge and the Scale of Investment Needed
Mr Burnham, widely seen as the next Prime Minister, has made regional inequality a central plank of his agenda. In a major speech last week, he pledged to overhaul the way the country is governed, promising "the biggest rebalancing of power our country has seen." He unveiled plans for a "No10 North" to be based in Manchester, describing it as the "nerve centre of a rewired Britain" that would drive the revitalisation of overlooked communities. Powers would be handed to mayors and local leaders, he said, adding: "It is time for Whitehall to accept that growth cannot be ordered from the top down. Instead, it can only be nurtured from the bottom up."
However, Curtice cautioned: "Turning ambition into reality will require investment in transport, housing and wider economic development on a scale that no recent political leader has come close to meeting. Unless that investment is taken seriously, the economic and political cost of Britain's geographic divides will continue."
Impact and Outlook
The warning comes as the UK grapples with persistent economic disparities that have fueled political discontent. The Resolution Foundation's analysis underscores the challenge facing Mr Burnham, who must secure significant funding to close the gap. Without such investment, experts warn that the divide could worsen, with consequences for both the economy and social cohesion.
