Tagged: City of London

North East family incomes lags behind most of UK

Family  incomes are on the rise in most of the region, official figures show – but at a slower pace than in most of the country.

Household disposable income per head crept up by just 0.8 per cent in the North-East between 2012 and 2013, below the one per cent rise across the United Kingdom.

And the North-East was left in the slow lane by both Scotland (up two per cent) and the West Midlands (up 2.3 per cent) as the economy bounced back, as well as by Yorkshire (up 1.4 per cent).

But households in London and the South-East (both up 0.6 per cent) saw incomes grow more slowly – even though overall growth was far higher than in the North-East in both areas.

The statistics also reveal striking local variations in the changes in gross disposable household income (GDHI), the amount available for spending or saving after taxes and benefits.

Incomes grew sharply in Darlington (3.5 per cent) and South Teesside (2.6 per cent) and were also up in North Yorkshire (two per cent) and Hartlepool and Stockton-on-Tees (1.9 per cent).

But growth was more sluggish in County Durham (1.3 per cent) – and fell markedly in both Sunderland (3.1 per cent) and York (3.3 per cent).

 And disposable incomes in the North-East are as little as one-third of those in the plushest parts of London, where the figures surged ahead between 2012 and 2013.

In Westminster, the average GDHI was £42,221 in 2013 – almost three times the figure of £14,659 in County Durham and the highest of 173 local areas analysed.

And incomes in Kensington and Chelsea/Hammersmith and Fulham (£42,116), Camden and City of London (£37,324) and Wandsworth (£35,237) were not far behind.

Matt Whittaker, chief economist at the Resolution Foundation think-tank, said:

“Regional inequalities have fallen since the crash, but the gap between the South East and the UK is stark.”

Experts believe disposal income – the amount people have to spend after the bills have been paid – is the best measure of the economic confidence of families and individuals.

The rising figures in most areas were thought to reflect low interest rates and low inflation offsetting disappointing wage rises, perhaps helping to return David Cameron to No.10 earlier this month.
Source – Northern Echo, 28 May 2015

North-East campaigners set to join anti-austerity protest in London

Campaigners from across the North-East will travel to London to join anti-austerity protesters next month.

Coachloads of campaigners are expected to make their way from the region to a national demonstration against austerity measures, called by The People’s Assembly Against Austerity.

The #EndAusterityNow demonstration is being staged in reaction to the election of the Conservatives and their austerity proposals.

A spokesman said:

“The Tories are back in, this time with a majority.

“They plan many more savage cuts, causing misery for millions.

“We are organising and demonstrating to stop them.

“We demand an alternative to austerity and to policies that only benefit those at the top.

“We’ll be assembling the demonstration in the heart of the City of London right on the doorstep of the people who created the crisis to demand that they should pay for it and not the majority who had nothing to do with it.”

Coaches will leave the North-East from Hartlepool and Middlesbrough on Saturday, June 20, returning the same evening.

Seats are £30 waged or £20 unwaged.

For more information or to book a seat, email nepeoplesassembly@gmail.com.

Source – Northern Echo, 12 May 2015

North politicians must form strong voice in wake of Scottish Independence vote

Regional economic policy must be revamped if the North East is to get a fair deal in the wake of the Scottish independence vote, a national research director has said.

Dr Angus Armstrong, director of macroeconomic research at the National Institute of Economic and Social Research, said the Treasury does not prioritise the North East and politicians must form a strong and unified voice to correct the imbalance.

At a debate on how September’s vote will impact on the region, regional leaders also heard of a “growing realisation” Scotland may not lower corporation tax, allaying fears the country would suck business from its neighbours.

It comes as all seven North East councils, from Durham to Northumberland, agree a Combined Authority which will allow it to bid for more Government funding.

Dr Armstrong said regional policy is not a priority for the Treasury when it calculates how to spend Government cash and the North should look to reconsider a regional assembly to be heard above its southern counterparts and in Europe.

He said: “I used to work for the Treasury during the crisis and regional policy does not register. I hate that that is the case, but I really don’t think it is part of Treasury policy. I think the whole concept of regional policy needs to be re-thought.”

He added: “People in the South East underestimate the extent to which power is centralised, so, although they have a feeling there is something of an imbalance, that imbalance is greater than that feeling would suggest.

“The reason I say that is because of the financial crisis. The only reason they could support the City of London is because of the taxpayers of the rest of England.

“When it goes wrong we pay, it is quite remarkable and I find it amazing that places outside of the South East don’t have more to say about that. I do think the degree of imbalance is extremely significant.”

Pat Ritchie, chief executive of Newcastle City Council, said the region’s airports and universities could lose out due to a possible relaxation in border controls which might see students flock to Scottish universities.

She added there were fears changes to the Air Passenger Duty tax could see carriers opt to begin routes from Scottish airports.

Ms Ritchie, however, said there was an opportunity for the region to export goods to the country and, with Edinburgh closer to the region than London, collaborate with Scottish national leaders.

She said: “We should and can be confident in our strengths. This is a region which exports more than any other region and it is already used to working with different markets.

“Whilst not wanting to marginalise what is an important debate, we should not get too hung up on what Scotland might or might not do.

“We need to really develop the strongest possible economic offer that we can for the North East and collaborate as local authorities and businesses and be confident.”

Professor David Bell, professor of economics at the University of Stirling, also spoke at the debate, organised by the Institute for Public Policy Research (IPPR), and said Scots are keenly aware of the need to collaborate with the North.

“I don’t think that the North East is particularly disadvantaged because for Scotland to get anywhere with these negotiations there would have to be a cluster of compromises, and it would make no sense to have poor relations with its near neighbours.”

He added the North East faced being drowned out by the South East but there was a “growing realisation” that Scotland could not drive down corporation tax as it risked becoming a tax haven for businesses.

He said: “I go to talk about independence on a regional basis and the elephant in the room is the lack of political impetus, particularly in the North East.

“It is just not there and it isn’t part of the issue.

“If Scotland votes yes or if it votes no and gets more powers, you will have a heavily asymmetrical system in England which cannot continue to be stable.”

Source – Newcastle Journal,  28 March 2014