A recent study by consultancy firm PwC indicates that approximately 12.5 million households—representing 46% of the UK—live in regions where economic expansion does not result in a tangible rise in quality of life. The report identifies a significant disparity in spending power, noting that every region in Wales, the Midlands, and the north of England currently falls below the national average.

The data highlights that households in Yorkshire and the Humber face the most significant deficit, with spending power £1,917 lower than the national average. Conversely, residents in the South East enjoy spending power 9% above the average, equating to an additional £2,154 annually. Researchers calculated these figures by analyzing disposable income after accounting for taxes, housing costs, and household composition.

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The findings also reveal localized inequalities within prosperous regions. In London, for instance, the average annual disposable income in Richmond is £35,448, compared to £18,384 in Hammersmith and Fulham. Rachel Taylor, a leader at PwC, noted that the research illustrates how prosperity is experienced unevenly, with stark variations occurring even between neighboring areas.

While the government has emphasized devolution and the creation of "No10 North" as strategies to address regional inequality, the approach faces political scrutiny. Conservative leader Kemi Badenoch criticized the government's strategy, arguing that increased state spending is not an effective driver of national wealth. Meanwhile, the PwC report suggests that for future growth to be effective, local authorities require greater control over the revenues generated within their jurisdictions.

Source: BBC News