Investment fails to lift Merseyside’s prosperity

Aug 6 2007 by Jessica Shaughnessy, Liverpool Daily Post

CAPITAL of Culture and millions of pounds of investment have failed to see Merseyside rise in the prosperity ranks, a new survey has shown.

Research published by the IPPR shows the north-south divide is still prevalent across the UK with the North West remaining one of the poorest regions.

And the average income in parts of Merseyside is still among the lowest despite a surge in employment opportunities in the run -up to 2008.

Last night, Walton MP Peter Kilfoyle said Liverpool was a victim of inequality and a postcode lottery and said it would take a lot more than Capital of Culture to raise the city’s long-term prosperity.

He said: “Capital of Culture, as is stands, is not going to have any real impact on the problems that have dogged Merseyside for decades.

“The area needs a sustained period of investment, not just for one year, and the few years running up to it.

“Liverpool and Merseyside is progressing, but the regeneration began when the area was already at a disadvantage so the fact is it is still lagging behind.

“But what is also worrying is the inequality within Merseyside itself. For example, the north-south divide in Liverpool. South Liverpool’s prosperity is way beyond that of North Liverpool, in terms of growth, employment and health. This needs addressing urgently.”

The IPPR report cites Government figures that measure the gap between regions.

These figures show that since 1997, the North West, the North East, Yorkshire and Humberside and the Midlands have all moved further away from the national average, on the Government’s measure of output per head, which is known as Gross Value Added (GVA).

Over the same period, London has outpaced the rest of Britain.

Currently, the average person in the North West earns £12,199 compared with an average of £13,486 in England.

But Merseyside’s average wage is just £11,810, with East Merseyside and Liverpool lagging behind at £10.992 and £10,914.

The figures are the lowest in the North West save the average wage in Blackburn, which is £9,970.

Wirral, Sefton and parts of Cheshire are more prosperous though, with averages of £13,255, £12,576 and £14,617.

Director of IPPR North Sue Stirling said: “The Government needs to get real on the North-South divide. At the moment, it is in denial.

“The work of Labour’s Regional Development Agencies has only succeeded in reducing the north’s relative decline.

“The standard Government line on the north-south divide is that inequalities within regions are as dramatic as those between regions. This is true but just because you deal with inequalities within regions it does not mean you should ignore inequalities between regions.

“This October’s Compre- hensive Spending Review will almost certainly scrap the Government’s current target, and not before time.

“But we need a proper target to replace it that explicitly focuses on the gap between north and south.”

jessicashaughnessy