The persistence of the regional pay divide in the UK is a stark reminder that decades of promises from successive governments have failed to deliver meaningful change. A new report by the Resolution Foundation reveals that the income gap between London and Northern Ireland, for example, remains as wide as it was 30 years ago.
Between 1997 and 2023, the gross household disposable income per person in London averaged three-fifths higher than in Northern Ireland, a disparity that highlights the entrenched divisions within the UK's regions. Notably, more than half of local authorities in the poorest fifth of places for income per person in 1997 are still there today, while 82% of the richest places have maintained their position.
The report makes it clear that sustained investment is essential to bridge this gap. The Resolution Foundation points to Germany's post-cold war reintegration efforts as an example worth emulating, where £70 billion was allocated annually for a period of 25 years to drive economic growth and cohesion in the former East Germany.
Resolution Foundation chief executive Ruth Curtice warned that turning ambition into reality will require significant investment in key areas such as transport, housing, and wider economic development – something that no recent political leader has come close to meeting. The report's findings underscore the need for a fundamental shift in approach from rhetoric to action if the UK is to make meaningful progress towards reducing regional disparities.