In a fresh review of numbers that Labour has deemed “scandalous,” a think tank stated that “the money hasn’t followed the rhetoric” when it comes to equalizing pay.
Despite the government’s signature “leveling up” initiative, public spending in the north has fallen below the England average, according to a new think tank report.
IPPR North, a department of the Institute for Public Policy Research, stated that despite Boris Johnson’s repeated promises to equalize the country, “money has simply not followed the words.”
In 2019, Mr. Johnson’s first year in office, per-person public spending in the north was £246 greater than the England average; by 2021, per-person public spending in the north was £86 lower than the England average.
Even though public expenditures have increased in every region of England in recent years, the think tank reports that investment in the north is currently lower and has grown less than in other regions.
Labour referred to the data as “scandalous” and said it demonstrated that “regional inequality has worsened since Boris Johnson became prime minister.”
However, a government official stated that they do not recognize the data and emphasized that “full steam ahead” was being put on “leveling out the north.”
The spokesperson stated, “We are transforming the rail network with a £96 billion investment to deliver faster and more reliable journeys, creating thousands of jobs with freeports in Teesside and the Humber, and supporting projects that improve daily life with our £4.8 billion Levelling Up Fund.”
“We also recognize the pressures faced by local governments, which is why we have made an additional £3.7 billion available to councils in recognition of their vital role and to ensure they can deliver essential services.”
The spending disparity between London and the north doubles
In 2021, the most recent year for which data is available, total public spending on the north was £16,223 per person, a 17 percent increase from 2019.
This is less than the England-wide average of £16,309 per person, which represents a 20 percent rise from 2019.
According to the IPPR, London had the greatest rise in investment, with public spending per person increasing by 25% to £19,231.
Between 2019 and 2021, the spending gap between the north and the capital doubled from £1,513 per person to £3,008.
Yorkshire and the Humber received the lowest total public spending per person in England in 2018 at £15,540, and the North East saw the lowest percentage increase compared to 2019 at 16%.
IPPR North stated that it also evaluated the data removing spending on health and COVID support to account for the pandemic’s impact, but found the same pattern.
‘Widening divides’
According to the think tank, “sustained underinvestment” in the north and ongoing financial pressure on local authorities in the region have contributed to “widening divides” in the country.
It urged the next prime minister to “go much further to unlock northern prosperity” and achieve national parity.
Marcus Johns, a research fellow at IPPR North, stated, “When it comes to public spending, the money simply did not match the rhetoric of parity.
“Although an increase in public spending for 2019 was necessary and welcomed, spending in the north is lower and grew more slowly than in other regions of the country.
“At the same time, the nation became more centralized and inequality increased. This is due to the unequal distribution of power in this country.”
What are gaining levels?
Mr. Johnson referred to leveling up as the “defining mission” of his administration and stated that the goal was to give people and communities that feel left behind a chance to catch up with London and the South East.
Despite being a central theme in the Conservatives’ 2019 manifesto, Rishi Sunak, and Liz Truss – the remaining leadership candidates – have made little mention of it.
Nonetheless, both candidates pledged their support for the policy during their first live head-to-head television debate on Monday night in Stoke-on-Trent.
Ms. Truss stated that she will take “immediate action” and will not make “promises for tomorrow,” whereas Mr. Sunak stated that he will concentrate on the revitalization of town centers, skills, and the education of children.
Monday, Labour outlined a plan to level up through increased devolution. Tuesday, the Conservatives declared their commitment to leveling up “dead.”
Lisa Nandy, the shadow secretary for communities, commented on the report, stating, “These numbers are scandalous.
Regional inequality has worsened since Boris Johnson became Prime Minister, despite all the Tory assurances to northerners. Now, the two continuity candidates trying to replace him are battling for Margaret Thatcher’s legacy.
“It is now blindingly evident that the Conservatives’ pledge to level the playing field has died.
“However, leveling up is not extinct. The next Labour government would devolve authority to communities, invest in bringing excellent jobs to every community, and guarantee that every section of the country has the resources to contribute once more.”
