London is vastly outperforming the rest of the UK in economic and jobs growth, according to new research published today.
An analysis of data from the Office for National Statistics, by the Trade Union Congress (TUC), found that our London-centric economy is leaving the rest of the UK standing in its wake.
The London economy grew more than one and a half times faster (163%) than the rate of the UK economy as a whole, between 2010 and 2013. Whereas, Northern Ireland and the North West grew by 49% and 51%, respectively.
London accounted for 14.2% of all newly created jobs in 2014, compared to 13.5% in 2010 and 12.4% in 1997.
Jobs growth in London was twice as fast (11.5%) as the UK as a whole (5.1%) between 2010 and 2014, and three times as fast as the West Midlands (3.7%) and the South West (3.6%).
The East of England came the closest to London, but still remains well behind on 5.9%.
The worst performing regions and UK nations for jobs growth were the North East (2.9%), Wales (2.7%), and the North West (1.8%).
Economic activity in London accounted for a staggering 22% of the entire UK economy in 2013, up from 21% in 2010 and 19% in 1997.
TUC General Secretary Frances O’Grady said: “We need a recovery that works for the whole of the UK, but cuts to infrastructure and services have hit places that are most in need of investment.
“We now have an unbalanced recovery that is too weak outside of London, too dependent on families getting into debt, and too focused on jobs in low-paid service industries.
“UK regions won’t become powerhouses of growth and job creation unless they are powered-up by investment in skills, infrastructure and decent public services – but the Chancellor’s extreme cuts will mean pulling the plug.
“We need a better economic plan that prioritises balanced growth across the UK by targeting investment to communities that are most in need of modern infrastructure and more decent jobs.”