A GULF in the amount of money people have to spend proves the North-South divide is widening, new figures revealed yesterday.
The growing gap between the regions was illustrated in data released by the Office for National Statistics.
It shows that while the region's households have a higher disposable income than ever before, the difference between the North-East and the South-East continues to increase.
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The report, based on snapshot statistics dating back to 2006, contains much good news for the region - with economic growth outstripping the rest of the country and the population rising after a decade of decline.
But the amount of money in the average North-Easterner's pocket is falling further behind the average Southerner as the region struggles to shed its reputation as a low-wage economy.
Figures show that for the period 2003-6, average weekly household income in the North-East was £455 - the lowest figure in the UK - while in Yorkshire and the Humber it was £529. The figures lag far behind London, on £766, and the South-East, on £687.
The average income gap between the North-East and London now stands at £311 - up from the £282 gap between the same two regions in 200104.
The survey also found that 36 per cent of North-East households had an income of less than £250-a-week, the highest percentage in the country and comparing with only 23 per cent in the South-East.
One-fifth of the region's household income is derived from benefits, again the highest proportion in the UK.
The region was also bottom of the table for average gross weekly earnings with an average of £400, compared with £499 in the South-East and £553 in London.
Last night, Fiona Hall, Lib Dem MEP for the North-East, said: "This is proof that the Government is wrong to claim that the North-South divide is a thing of the past. It is a reminder that the North-East deserves a needs-based funding formula.
"The Government must do more to help poorer households
who are suffering from a time of
rising fuel and food prices, as well
as those low-income single workers
who will feel the impact of the
loss of the 10p starting tax rate
very hard."
However, Nick Brown, Minister
for the North-East, condemned
what he described as the
"shallow opportunism of the Liberal
Democrats" and said: "Earnings
and employment opportunities
have been growing very fast
in the North-East and the actual
gap between the Northern region
and the South is narrowing in
terms of employment.
"The real comparison is between
where the North-East is
now and where it was ten years
ago - and that shows there has
been substantial progress, with
more people in work."
Mike Parker, spokesman for
the North-East Chamber of Commerce,
said: "The North-East has
the fastest growing regional
economy in the UK, which is
something that should not be
underestimated.
"However, it is critically important
that the region maintains
that momentum and is not
considered to be a low-wage economy.
If we are to retain and attract
the brightest and best talents,
people will want to see the
salaries to go along with the employment
opportunities that are
there."
Pat Ritchie, assistant chief executive
at development agency
One NorthEast, highlighted the
figures for economic growth,
which were the best in the country
and had exceeded the national
average for three years, and the
narrowing of the gap in employment
rates.
She said: "The regional trends
report shows very clearly that,
whilst North-East England's
economy still faces some significant
challenges, we are heading
in the right direction."
THE NORTH-SOUTH DIVIDE
NORTH
SOUTH
Class sizes:
Average class sizes in primary schools 2006-7
25.0 pupils
26.1 pupils
Average class sizes in secondary schools 2006-7
20.9 pupils
21.4 pupils
Economy:
Value of goods and services produced per head in 2006
*Growing at 5.3% per year, the highest rate of growth in the country.
£15,200*
£19,100
House prices:
Average cost of a semi-detached house
£143,000
£239,000
Income:
Average weekly household income 2003-6
£455
£687
Expenditure:
Average weekly household expenditure
£352
£481
Benefits:
The percentage of households in receipt of incapacity or disability benefits
40%
25%
Population: North-East population stood at
2.6 million in 2006, up by 16,000 since 2001.
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