The North-South divide

Introduction

The north-south divide refers to the economic, social, and cultural differences often observed between southern England (including London and the South East) and the rest of the country, particularly the North of England. Over time, this divide has become a frequent focus of government policy, public debate, and investment strategies. Discrepancies can be seen in employment rates, average incomes, house prices, education results, and life expectancy.

Historical Roots

The historical context of the north–south divide stretches back to the Industrial Revolution. Northern cities like Manchester, Liverpool, and Newcastle thrived on textiles, shipping, and heavy industry. However, as Britain transitioned to a post-industrial economy, service-based sectors (e.g., finance and technology) became increasingly concentrated in the South, especially London. De-industrialisation in the north has left many northern areas behind their southern counterparts. This contributed to uneven investment in infrastructure, research, and business development across different regions.

Main Indicators of the Divide

1. Economic Output: The gross domestic product in regions such as London and the South East is significantly higher than in parts of the North East and Yorkshire and Humber.
2. Employment Opportunities: London’s financial sector and the broader South East often host a larger variety of higher-paid, highly skilled jobs. The map below shows the percentage of people who are economically active (over 16 years and are in employment, looking for work and could work within 2 weeks, or unemployed but waiting for a job that has been offered or accepted) in England and Wales at the time of the 2021 Census. London and the Southeast have a higher proportion of economically active people than the rest of England and Wales.
3. Wages and Living Standards: Average wages, house prices, and living costs vary widely across the UK, often reflecting regional differences in investment and job availability. Additionally, more people are economically active in London and the Southeast.
4. Infrastructure & Transport: Southern regions generally benefit from more extensive rail and road networks and major airport hubs, though this is gradually changing through new developments in the North.

Strategies to Resolve Regional Differences

1. Northern Powerhouse

A flagship policy aimed at boosting economic growth in the North of England. It focuses on:

• Attracting investment in northern cities (e.g., Manchester, Leeds, Liverpool) through promoting regional strengths, such as digital and creative industries.
• Improving transport links, such as upgrading rail services and local infrastructure, would reduce travel times and encourage business relocations.

2. Devolution of Powers

Some English regions now have elected mayors and greater local control over budgets. This enables:

• Local governments to tailor spending to regional needs, focusing on issues such as skills training, housing, and transport improvements.
• A better understanding of regional priorities leads to targeted economic policies.

3. Transport Upgrades

Projects designed to narrow the divide by making cities in the North and Midlands more accessible:

• High Speed 2 (HS2): A high-speed rail project intended to connect London, Birmingham, Manchester, and Leeds, reducing travel times and improving business connectivity. However, the proposed routes to the north from Birmingham have since been cancelled.
• Northern Powerhouse Rail (proposed): Aims to link major northern cities, further stimulating economic cooperation and employment opportunities.

4. Local Enterprise Partnerships (LEPs)

LEPs are voluntary partnerships between local authorities and businesses, focusing on:

• Job creation through business support and skills development.
• Innovation and research by linking universities with industry to drive regional growth.

5. Enterprise Zones

Designated areas offering tax breaks, simplified planning, and financial incentives to encourage business start-ups and expansion. They help:

• Stimulate investment in regions previously overshadowed by major cities.
• Diversify local economies by attracting sectors like tech, renewable energy, or advanced manufacturing.