UK income divide unchanged since 1997

UK regional income divide unchanged in 30 years, report finds

7 reported

A report from the Resolution Foundation finds that Britain’s regional household income divide has barely changed since 1997, despite promises from successive governments. The analysis shows that gross household disposable income per person in London was £27,900 in 2023, three-fifths higher than Northern Ireland’s £17,300. At the local level, disposable incomes in Kensington and Chelsea were £60,584, four and a half times higher than Leicester’s £13,398. The report notes that 54% of local authorities in the poorest fifth for income per person in 1997 remained there in 2023, while 82% of the richest places stayed at the top. Some progress was made in narrowing employment gaps and productivity growth in cities like Manchester, but the foundation warns that incoming prime minister Andy Burnham will need significant investment to address the divide.

What’s reported

The Resolution Foundation report states almost no progress has been made since 1997 on the UK regional household income divide.

In 2023, London’s gross household disposable income per person was £27,900, three-fifths higher than Northern Ireland’s £17,300.

Kensington and Chelsea had disposable incomes of £60,584, four and a half times higher than Leicester’s £13,398.

54% of local authorities in the poorest fifth for income per person in 1997 were still there in 2023; 82% of the richest places stayed at the top.

Between 2019 and 2023, the income gap between the richest and poorest tenth of local authorities remained the same.

Manchester’s gross household disposable income per person grew by 40% in real terms between 1997 and 2023, but at £16,500 it remained behind London, Sheffield, Newcastle, and Liverpool.

The report notes Germany allocated about £70bn annually for 25 years on post-cold war reintegration, while UK “levelling-up” spending in 2022 was £4bn.