Daily Junction.mobi portalFirst, devolve tax and spending powers. Give regions (and cities) the power to raise revenue (e.g., local income tax, business rates, land value tax) and spend it on local priorities. This would end the begging-bowl model of central government grants.
Second, invest in regional infrastructure. Build Northern Powerhouse Rail, upgrade regional transport, and invest in digital connectivity. The National Infrastructure Commission estimates this would cost £50 billion over 10 years—less than the cost of HS2 (£106 billion).
Third, relocate government departments and agencies. Move civil service jobs out of London to regional cities (e.g., HMRC to Newcastle, DVLA to Swansea). This would create high-skilled jobs and reduce London's dominance.
Fourth, reform the planning system. Allow regions to build more housing and commercial space, reducing the cost of living and doing business. London's high costs (housing, office space) are a barrier to growth in other regions.
Fifth, invest in skills and education. The UK has a long tail of low skills, especially in left-behind regions. Invest in further education, apprenticeships, and retraining to boost productivity.
London's GDP per capita (£56,000) is double that of Wales (£24,000) and the North East (£26,000). Life expectancy in Blackpool (77.9 years) is 7 years lower than in Westminster (84.9 years). London receives £3,738 per person in transport investment, compared to £519 in the North East. The UK has the highest regional inequality in Europe (2.3x gap between richest and poorest regions), worse than Italy (2.0x), Germany (1.8x), or France (1.7x). The 'levelling up' agenda delivered £4.8 billion in funding, but London received £1.2 billion—25% of the total. Regional inequality is the result of extreme centralisation, London-centric investment, and a political system that rewards swing voters over deprived communities. The question is whether we have the political courage to devolve power and invest in the regions left behind.