Research published today by a leading think-tank shows that centralisation has allowed England to develop the worst regional inequalities in the developed world. It finds that despite being home to just a third of people in England, almost half (47%) of the increase in jobs in the last decade was in London and the South East.
Crucially, they find that these regional economic divides do not benefit people in London either. Londoners face the highest rates of income inequality in the country, as well as the highest rate of poverty in England with 28% of people in the capital trapped in relative poverty, after housing costs.
The IPPR North report says that this Parliament must be the “Devolution Parliament” to truly “level up” the country with a four-year programme that puts power and resources into towns, cities and regions across England.
Levelling up can only be achieved by putting mayors and local leaders in the driving seat, researchers argue. And the government must open the door to devolution across England, while letting places like Greater Manchester, West Midlands and London take on more power too.
Today’s paper shows that these divides – both between England’s regions, and between the people living within them – have been enabled by our uniquely centralised political system.
The report shows how other countries, like Germany, have more devolved economic powers and are better placed to support economic prosperity – Germany spends twice as much locally or regionally on supporting their economies, as a percentage of GDP.
Senior Research Fellow at IPPR North, Luke Raikes said:
“For too long, Westminster has hoarded power and held back prosperity in all of England’s regions, including London.
“Levelling up should mean opening the door for all of England to benefit from devolution, while also letting areas that have devolution take on more.
“This Parliament must be the Devolution Parliament. It is time to overturn the centralisation that’s let towns, cities and regions fall into decline. The government must give places the power and resources they need, to adapt to the decades of change that lie ahead.”
