The economic divide between north and south that is:
A fourth phase now looms because up until 2008-09, regional policy – such as it was – involved redistributing tax revenues from the south into higher public spending in the north. As work by Karel Williams and Sukhdev Johal for the Centre for Research on Socio-Cultural Change at Manchester University has shown, the state compensated for the retreat of the private sector. London accounted for almost half the full-time job creation while Labour was in power between 1997 and 2010.
Perhaps it\’s the way in which that higher public spending in the North has led to incomes being higher than productivity? Something which we know reduces employment as who is willing to employ labour for more than the value of employing labour?
The solution therefore is to reduce said public spending so as to reduce that cost of labour.
Or, if that\’s all too much, why not reduce the burden of the State? In fact, when I\’m dictator, this is what I\’m going to do.
I\’ll leave all of the current planning permissions and HSE and EU and all rules in place in London and the SE. And I\’ll abolish them everywhere else. Then let\’s see the power of capitalism and markets red in tooth and claw against the social democratic compromise.
It\’ll be the current England rules against Hong Kong rules and may the best man win. Me, I think that the North would be richer than the SE within a decade: but at least this way we\’ll find out, won\’t we?