Leicester, recently celebrated for its Premier League triumph, has been ranked bottom of the UK table for household disposable income, according to figures from the Office for National Statistics (ONS). The average disposable income per head in the city was £12,071 in 2014, more than £5,000 below the UK average of £17,965.
The highest disposable incomes were recorded in the London boroughs of Kensington and Chelsea and Hammersmith and Fulham, where the average was £45,988 per head. This wealthy area also saw the largest growth in spending power relative to the UK average between 1997 and 2014, at 32 per cent.
Leicester has languished near the bottom of the table for years. John Hood, acting director of the Equality Trust, attributed this to higher-than-average unemployment, a prevalence of low-paid jobs, and a higher proportion of people claiming benefits, including in-work benefits. He said a lack of decent local jobs was at the heart of the issue, noting that the East Midlands overall struggled to retain graduates.
Hood expressed concern about the widening regional inequality, stating there was a 'worrying acceptance that some regions can streak away, leaving others behind.' He warned that allowing some regions to 'wither and decline' would be a 'desperate fate' for the millions living there.
Manchester has experienced the biggest decline in disposable incomes relative to the UK average since 1997, falling nearly 17 per cent. Residents there had an average of £13,746 to spend in 2014. The ONS figures suggest the north-south divide persists despite the government's 'northern powerhouse' initiative.
At a regional level, Londoners had the highest purchasing power in 2014, with average disposable incomes of £23,607 per head, up 1.9 per cent from the previous year. Of the four UK countries, only England exceeded the UK average at £18,315, followed by Scotland (£17,095), Wales (£15,302), and Northern Ireland (£14,645).
