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Boris Johnson restated his commitment to levelling up this morning. (See 12.03pm.) But a new report from the Resolution Foundation underlines quite what a challenge this will be. Using data showing how average incomes at local authority level have changed since 1997, it says inequalities have been persistent and that over the last 25 years overall change has been limited. It says:
We begin by showing that income differences at the local authority level are substantial. In 2019, before housing costs income per person in the richest local authority – Kensington and Chelsea (£52,451) – was 4.5 times that of the poorest – Nottingham (£11,708). These outliers clearly paint an extreme picture, but even when we compare incomes at the 75th and the 25th percentiles the differences remain significant. In 2019, for example, Oxford had an average per person income that was more than 20 per cent higher than Torbay (£18,700, compared with £15,372). More critically, the income gaps between places are enduring: the differences we observe in 1997 explain 80 per cent of the variation in average local authority income per person 22 years on. This means, for example, that the average income per person in Hammersmith and Fulham has stubbornly been two-to-three times higher than in Burnley for more than two decades.
Britain is beset by huge economic gaps between different parts of the country, and has been for many decades. While progress has been made in reducing employment gaps, this been offset by a surge in investment income among better-off families in London and the south-east.
People care about these gaps and want them closed, as does the government via its ‘levelling up’ strategy. The key to closing these gaps is to boost the productivity of our major cities outside London, which will also lead to stronger growth overall.
Driving a massive, massive agenda for change is a huge, huge privilege to do. And nobody abandons a privilege like that.
The mandate that the electorate gave us in 2019, there hasn’t been a mandate like it for the Conservative party for 40 years, it’s a mandate to change the country, to unite and to level up, and that’s what we’re going to do.
I’ve got a new mandate from my party which I’m absolutely delighted with … it’s done.
I think the job of government is to get on with governing, and to resist the blandishments of the media, no matter how brilliant, to talk about politics, to talk about ourselves.
I think most fair minded people, looking at how the UK came through Covid, around the world most people would say, actually fair play to them. They got the first vaccine into people’s arms, and they had the fastest vaccine rollout. Actually, they’ve got pretty low unemployment. They’ve got investment flooding into their country, they have got a lot of things going for them.
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