BoE's Andrew Haldane warns of regional growth inequality


BoE's Andrew Haldane warns of regional growth inequality
Regional inequality in the UK is becoming more pronounced, Bank of England chief economist Andrew Haldane has warned.

London and the South East are the only places in the UK where income per head is back above pre-financial crisis levels, he said.

Net wealth has also fallen in places such as the north-east of England.

But without action by the Bank, the regions could have faced economic contraction, he added.

"The UK, I think, is towards the bottom of the league table within Europe in terms of its degree of difference across regions," Mr Haldane told the BBC economics editor Kamal Ahmed.


He said that wage differences between regions of the UK could differ by as much as 50% and that the productivity gap between regions could be as much as 60%.

Mr Haldane also said there had not been much evidence of those gaps shrinking over the past few years.

"If anything these gaps, which are of long standing have nudges a little wider over the course of the UK's recovery," he said.

There was no single reason why there were such big and persistent differences between regions, he said.

But he thinks differing levels of skills and research and development could be partly to blame.

The Bank of England lacks the tools to tackle the problem, according to Mr Haldane.

"The tools we have at our disposal are, truth be told... few in number and rather blunt in impact. They tend to work by lifting all boats across the whole of the UK," he said.

Mr Haldane was giving a speech at an iron and steel research centre in Redcar, North Yorkshire.



Add Comment

all comments

  Other news

more
US Sanctions Firms Working With North Korea, Iran

US Sanctions Firms Working With North Korea, Iran..

24-Mar, 16:10

A television screen shows a news program reporting about North Korea's...

Row over US ISP customer data sales

Row over US ISP customer data sales..

24-Mar, 13:18

US politicians have voted to remove rules that demanded ISPs got...

Jay Z plans Trayvon Martin TV series and film

Jay Z plans Trayvon Martin TV series and film..

24-Mar, 10:08

The shooting of black teenager Trayvon Martin by a US neighbourhood...

A vote with few voters

A vote with few voters..

24-Mar, 23:42

Hong Kong chooses its next leader on Sunday in a vote overshadowed by...

3 Decapitated Bodies Found in Somalia After Abduction

3 Decapitated Bodies Found in Somalia After Abduction..

01-Feb, 12:46

Somalia residents say they have found three decapitated bodies just days...

Colombia keeps cocaine from spoiling Valentine's Day flowers

Colombia keeps cocaine from spoiling Valentine's Day flowers..

14-Feb, 00:14

Cocaine is probably the last thing most people think about when buying...

Always Spring Episode 66

Always Spring Episode 66..

30-Jan, 08:43

The following Always Spring Episode 66 English Sub has been released....

Romania: thousands attend pro-government rally

Romania: thousands attend pro-government rally..

25-Feb, 06:58

Thousands of people turned out for a pro-government rally in southern...