UK’s North South divide widens
A new study by Centres for Cities has shown that the gap between economies in the north and south of the UK has widened. Since 2004, for every 12 jobs created in southern cities, only one was created in the north.
The UK economy is strengthening overall, but growth has been mainly driven in southern English cities, as well as big Scottish cities. The number of jobs created in London rose by more than 17% in the last 10 years, but in Blackpool, Rochdale and Gloucester there were falls of 10%. In Scotland, Aberdeen extensive sustained growth compared to Edinburgh, Glasgow and Dundee, largely because of its proximity to the oil and gas fields in the North Sea.
Centre for Cities says there is a danger smaller places could fall behind further as growth patterns become ingrained.
Low oil prices are predicted to fuel a major change in the UK economy this year, as forecasts predict economic growth of 2.9% . Predictions are a lot brighter than they were three months ago, but the weak Eurozone still remains a threat to the UKs growth.
Acting chief executive of Centres for Cities Andrew Carter said:
"The stark picture the report paints of the enormous gap in the fortunes of UK cities over 10 years underlines why a 'steady as she goes' approach must be scrapped."
Government cities minister, Greg Clark, said:
"This government's long-term economic plan is working right across the country.”
"We know there is more to do and that's why we have given greater powers to 27 of the UK's largest cities through City Deals, and why we have committed a further £7bn to the North of England."
Need financial advice?
If you have any personal finance questions related to this news article, then please contact our financial advisers. You can get in touch by asking a question online, calling us on 0800 092 1245, or by arranging a visit.
EU welfare reforms could encourage low earners not to work
13/11/2015 Government plans to stop EU migrants claiming in-work benefits would encourage some British workers to give up their job, according to some government officials. The prime minister is making welfare reform within the EU a key demand ahead of the proposed in-out referendum. However, the current demands to stop EU migrants from claiming in-work benefits will most likely have to b...Read More
Jobseekers to be given 14 days warning before sanction
23/10/2015 Jobseekers will be given a warning period of 14 days before they are faced with benefit sanctions under a new scheme that will be brought in next year, according to the government. At the moment, sanctions which result in the loss of benefits can be imposed immediately if a jobseeker has an issue such as not turning up for a job interview or not meeting their job adviser. The exte...Read More
Will investment markets ever be the same again?
While we have been through many recessions and boom times in the UK and bounced back fairly quickly from the majority of them, there is a feeling that the scars left this time will take longer to heal. We have seen well known companies go out of business, we have seen banking systems collapse and over the next few months we will see a massive increase in the number of personal bankruptcies in the...Read More
David Blunkett suggest Labour need a miracle
David Blunkett has today stepped out of the shadows to suggest that the Labour Party needs a miracle to win the next election. It is unclear as to whether this is the start of a new strategy by Labour Party, to place themselves as underdogs, or indeed a personal comment from David Blunkett, but whatever the case it has caught the attention of the political press. While the voting polls in the U...Read More
UK publicans set to strike in 2010
The general workers union, the GMB, it is set to ballot tied pub tenants in early 2010 to test their appetite for potential industrial action against what many believe are costly contracts with pub parent company. The so called Pubcos own around 50% of pubs in the UK and have their tenants tied into allegedly expensive drink supply contracts with some suggestions that the price of a barrel of beer...Read More