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England’s North/South Economic Divide Predicted to Grow

A new report suggests that the economic divide between the North and South of England is set to grow. It is predicted that this will happen in the period until 2023.

The Full Details

Most at risk of falling behind are the smaller towns and villages in the North of the country. It is feared that the bigger cities will continue to move further ahead of them in the next 3 years or so.

If the current conditions carry on then London, the South-East and the East of England will be the fastest-growing parts of the country in the period covered. This will skew the economic imbalance further, as Yorkshire and the North-East are expected to be among the most sluggish regions in terms of growth.

The South-West is the only region in the South of England that is predicted to be among the slowest-growing areas. All of this has led to suggestions that among the planet’s developed nations, the UK is one of the most regionally unbalanced.   

Some More Figures

The good news is that faster growth has been seen lately in some of the biggest Northerly cities. Liverpool and Manchester, for example, have been progressing impressively in the last couple of years. Meanwhile, the predictions for the next 3 years suggest that Manchester and Nottingham will be among the English cities with the best growth rates. 

However, the gross value added to the overall economy shows the difference when it comes to the smaller towns. They are expected to grow at an annual rate of 1.6%, compared to 2.2% for the country’s largest cities. 

Another of the factors is the way that economic growth is expected to be far faster in the biggest cities. These financial powerhouses should grow at twice the speed of smaller towns across the country. In fact, the towns in Yorkshire and the North-East of England could grow at just 1.1%. 

Newcastle is predicted to achieve 1.7%, while Leeds should see a 1.9% rate. The slow economic conditions across Europe and beyond has already encouraged many companies to look at international debt collection matters.

The number of jobs being created is one area where Manchester comes out ahead of other cities, with a 1.4% total expected. On the other hand, the North-West in general will probably only see a 0.3% increase in terms of the number of new jobs entering the market.

What Happens Next?

The report urges action to help remove some of this imbalance. With the first budget from Boris Johnson’s new government to come next month, it is hoped that the first steps towards closing the North/South divide will be taken.

Indeed, the Prime Minister has already pledged to increase government spending outside of the prosperous capital and South-East. Naturally, this isn’t the first time that government policies have been aimed at correcting this imbalance.

Over the last 50 years, there have been more than 40 policies that were expected to improve the financial activity in different regions of the country. Yet, since the end of the last century, much of the growth that has been seen has occurred in London and the surrounding area.