5.1.7 The North/South Divide

Economic Development in the UK: NORTH/SOUTH DIVIDE

Why does a North/South divide exist?

• Economic Investment:
• Investment and jobs are concentrated in the capital (London) and nearby areas.
• London as a Global City:
• A global financial services centre with excellent rail, road, and airport links.
• The south of England has higher wages, house prices, and better quality of life.
• Deindustrialisation:
• In the 1970s and 1980s, northern towns and cities faced deindustrialisation.
• Led to unemployment and weaker economic growth in the north.

Evidence of the Divide:

• Wages**:**
  • Generally lower in the north 📝(e.g., average wage in Huddersfield is 40% lower than in London).
• Health:
  • Worse in the north than the south 📝 (e.g., life expectancy in Glasgow, Scotland is 72.6, whereas in Dorset on the south coast it is 82.9).
• Education:
  • Better in the south 📝 (e.g., in London, 50% of children go into higher education, whereas in the north, it's 35%).

Solutions to the North/South Divide:

Transport Improvements:

• High-Speed Rail (HS2):
  • New high-speed rail service between London and the north (started in 2017).
  • Electrification of the Trans-Pennine railway (completion 2024/2025 with work ongoing).
• M62 Cross-Pennine Motorway:
  • Upgraded.
• Liverpool2 Deep Water Container Port:
  • Opened in 2016).
• Mersey Gateway:
  • Opened in October 2017.
  • New 6-lane toll bridge over the River Mersey.

Local Enterprise Schemes:

• Northern Powerhouse Strategy:
  • Launched by the government to boost the north's economy.
• Investment:
  • £62 million BT investment in broadband across 97% of the north by 2025.
  • New business rate discount of up to £275,000 per year for businesses moving north.
• Financial Incentives:
  • Financial incentives for companies to move to the north.