Income in Wales and Northern England same as in London in the 1990s

The government has been urged to work harder to ensure economic development stretches across the UK, as research has shown a major financial equality gap between London and the South East in comparison with the rest of the country.

The Institute for Fiscal Studies found that current incomes in parts of England and Wales are at the same level as London and the South East in the 1990s.

IFS analysis, which was funded by the Joseph Rowntree Foundation, showed that Southern England is now showing an average income of 13% above the national average. That figure has more than doubled since the 1970s.

Trade Union Congress general secretary Frances O’Grady called on ministers to address the issue.

She said: “Action must be taken to close Britain’s regional income gap. People are still missing out on the chance of decent, well-paid work because of where they live.

O’Grady called on ministers to address the issue in a statement on Tuesday

“These findings cannot be shrugged off. Ministers need to explain how they’ll deliver growth and boost living standards in every corner of the country. Not just wealthier parts of the capital.”

According to TUC research, the South East will make up 40% of the national economy by 2022, and O’Grady added it would take serious investment in order to address the imbalance.

“The government has to get on with its much-trumpeted industrial strategy if we are to create good jobs where they’re needed most. And they must put serious investment behind it.”