London's share of the UK's economic output is now at its highest in history (21.9%). (Per ONS). This even exceeds its 1911 peak when London was the world's major city, a major manufacturing city, the world's biggest port and the administrative centre of the world's greatest ever Empire.

London and the SE / E regions represented 45.2 per cent of theUK economy in 2011 and the rest of England & Wales 44.3%. This means 22.7M SE'ers were more productive than 33.4M from the rest of England & Wales.

Only two regions had gross value added per worker of more than the UK average - London with nearly 140% and the SE about 105%. The weakest regions were Wales (weakest), Northern Ireland and then Yorkshire. Londoners were 66.2% more productive than Welsh workers.

These are stark statistics, with the economy becoming more reliant on London even with the despair in the City and banking crisis. What can be done to make Northerners more productive? What might be the longer-term ramifications forthe UK if this imbalance is not addressed? Is the UK sustainable if the regions do not become more productive? Do the statistics show that capitalism works whereas socialism (reliance on the State for jobs) does not?

Given that capitalism has recently needed a rescue from itself, no.

Wrong question. It should be "What can be done to make [ithe North[/i more productive?"

The answer is very simple. Move the jobs from down south, up north (the jobs that is, not the Southerners they can stay there).

Trolling again eh Dally.

How do you move these jobs? Companies locate where they do for reasons. For instance, they need access to markets and a skilled / educated workforce. The only way to get them to move en masse would be heavy government subsidy - which would be counter-productive so far as the overall UK position is concerned and lead to further cuts in public services. The future of the welfare state absolutely and totally depends on the North and West of the UK becoming economically stronger and the South and East staying relatively strong. As someone is getting older I want the welfare state to exist in future!

Or ...

Create more jobs in the north.

We don't actually have full employment down here, you know.

I'd guess that London has more state employees than anywhere else in the UK.

In % terms?

Look at relative contributions of public v private sectors to regionalGDP.

What do you want?
The regions to go down the banking and finance route or London to take back the various regionalised civil service departments?

It worked in the 1970s and 80s - take a look at the Don and Dearne valleys in South Yorks to see a huge swathe of the countryside decimated by pit closures being redeveloped by EU funding for roads and underground infrastructure and then the businesses being encouraged by low or no business rates and subsidised rents or construction costs, they don't all stay when the subsidies stop but a good percentage of them have done, and they wouldn't be there at all if not for some imaginative thinking and a hand-in-pocket attitude by the tail end of the last Tory government (after they had caused the armegeddon in the first place).

It is noticeable that London where there is a greater degree of multiculturalism and higher proportion of immigrants is the most productive part of the economy and the northern regions where large parts are still ethnically homogenous are lagging behind so I think the solution would be increased immigration and to make sure diversity policies are pursued more thoroughly in the regions.

Well it clearly hasn't worked that well otherwise the stats. would be someehat different.

Furthermore, are these high profile regeneration projects politically inspired and often wasteful? In you example, The Don Valley stadium was one such project - closed now (last I heard) due to tack of cash to maintain and run it. City of Manchster stadium was supposed to be a focal point to regenerate a run a run down area. Last time I visited (granted a couple of years ago) the surrounding area did not look regenerated!

It takes more than a string of industrial estates to regenerate an area, but its a start, and yes they were politically inspired and a good job someone in Thatchers government saw sense or The Peoples Republic of South Yorkshire would have been a reality these past thirty years.

Truth is there is now a string of hi-tech businesses where once stood pits, truth is that they don't need a workforce of thousands to keep them running and certainly don't need a workforce of thousands of clerical workers to keep them running, they took the skilled workers from those lost industries and taught them new skills, which is what we should be focusing upon as a country.

Sports facilities never sparked a regeneration of anything.

Part of Manchester is the most diverse. So your point is?

Some interesting stuff in the Manchester Evening news, showing the in balance in public spending favouring London www.manchestereveningnews.co.uk/ ... ed-1744883 Greater Manchester has only £16 million a year set aside for the 4 years commencing 2015 in Transport Infrastructure. London has £2.7 billion for each of the four years. More will be spent on a cycle route within London than all forms of transport within Greater Manchester over the same period.

Some interesting stuff in the Manchester Evening news, showing the in balance in public spending favouring London www.manchestereveningnews.co.uk/ ... ed-1744883 Greater Manchester has only £16 million a year set aside for the 4 years commencing 2015 in Transport Infrastructure. London has £2.7 billion for each of the four years. More will be spent on a cycle route within London than all forms of transport within Greater Manchester over the same period.

Quote ="The Chair Maker"Some interesting stuff in the Manchester Evening news, showing the in balance in public spending favouring London www.manchestereveningnews.co.uk/ ... ed-1744883 Greater Manchester has only £16 million a year set aside for the 4 years commencing 2015 in Transport Infrastructure. London has £2.7 billion for each of the four years. More will be spent on a cycle route within London than all forms of transport within Greater Manchester over the same period.'" It's clearly more sensible to spend much more on transport for an overcrowded global city that drives the country's economy than in a provincial ares that already has relatively good transport links and a superb motorway network.

Quote ="The Chair Maker"Some interesting stuff in the Manchester Evening news, showing the in balance in public spending favouring London www.manchestereveningnews.co.uk/ ... ed-1744883 Greater Manchester has only £16 million a year set aside for the 4 years commencing 2015 in Transport Infrastructure. London has £2.7 billion for each of the four years. More will be spent on a cycle route within London than all forms of transport within Greater Manchester over the same period.'" It's clearly more sensible to spend much more on transport for an overcrowded global city that drives the country's economy than in a provincial ares that already has relatively good transport links and a superb motorway network.

Quote ="The Chair Maker"Some interesting stuff in the Manchester Evening news, showing the in balance in public spending favouring London www.manchestereveningnews.co.uk/ ... ed-1744883 Greater Manchester has only £16 million a year set aside for the 4 years commencing 2015 in Transport Infrastructure. London has £2.7 billion for each of the four years. More will be spent on a cycle route within London than all forms of transport within Greater Manchester over the same period.'" It's clearly more sensible to spend much more on transport for an overcrowded global city that drives the country's economy than in a provincial ares that already has relatively good transport links and a superb motorway network.

Quote ="The Chair Maker"Some interesting stuff in the Manchester Evening news, showing the in balance in public spending favouring London www.manchestereveningnews.co.uk/ ... ed-1744883 Greater Manchester has only £16 million a year set aside for the 4 years commencing 2015 in Transport Infrastructure. London has £2.7 billion for each of the four years. More will be spent on a cycle route within London than all forms of transport within Greater Manchester over the same period.'" It's clearly more sensible to spend much more on transport for an overcrowded global city that drives the country's economy than in a provincial ares that already has relatively good transport links and a superb motorway network.

Quote ="Dally"Part of Manchester is the most diverse. So your point is?'" No it isn't. www.ons.gov.uk/ons/dcp171776_290558.pdf Quote • Across the English regions and Wales, London was the most ethnically diverse area, with the highest proportion of minority ethnic groups and the lowest proportion of the White ethnic group at 59.8 per cent, in 2011. The West Midlands was the second most diverse with White ethnic group at 79.2 per cent. London had above average proportions for most minority ethnic groups including African (7.0 per cent), Indian (6.6 per cent), and Caribbean (4.2 per cent). It also had the highest incidence of Any Other White at 12.6 per cent. • While White British was the majority ethnic group in London, it had the lowest percentage of White British across England and Wales at 44.9 per cent. • The West Midlands had a higher than average percentage of minority ethnic groups: Pakistani at 4.1 per cent, Indian at 3.9 per cent and Caribbean at 1.5 per cent. It also had a lower than average White ethnic group at 82.7 per cent and White British at 79.2 per cent. Across the English regions and Wales, Wales was the least diverse area, followed by the South West and North East. Over 95 per cent of the population identified as White in these areas. • Within the White ethnic group, the North East had the highest percentage of White British at 93.6 per cent, followed by Wales at 93.2 per cent and the South West at 91.8 per cent. • Wales had the lowest percentage of minority ethnic groups, with the majority at 1 per cent and below (excluding Any Other White at 1.8 per cent). '" Also see here on the index of ethnic diversity: data.london.gov.uk/datastorefile ... ndices.pdf Quote In national rankings of ethnic diversity indices 26 of the top 30 local authorities are London boroughs, with four outside London (Slough, Luton, Leicester and Birmingham).'" Now let me guess, you read the Daily Mail article about Manchester a few weeks back that said "Cheetham Hill Road is one of Britain's most diverse streets."

Quote ="Dally"Part of Manchester is the most diverse. So your point is?'" No it isn't. www.ons.gov.uk/ons/dcp171776_290558.pdf Quote • Across the English regions and Wales, London was the most ethnically diverse area, with the highest proportion of minority ethnic groups and the lowest proportion of the White ethnic group at 59.8 per cent, in 2011. The West Midlands was the second most diverse with White ethnic group at 79.2 per cent. London had above average proportions for most minority ethnic groups including African (7.0 per cent), Indian (6.6 per cent), and Caribbean (4.2 per cent). It also had the highest incidence of Any Other White at 12.6 per cent. • While White British was the majority ethnic group in London, it had the lowest percentage of White British across England and Wales at 44.9 per cent. • The West Midlands had a higher than average percentage of minority ethnic groups: Pakistani at 4.1 per cent, Indian at 3.9 per cent and Caribbean at 1.5 per cent. It also had a lower than average White ethnic group at 82.7 per cent and White British at 79.2 per cent. Across the English regions and Wales, Wales was the least diverse area, followed by the South West and North East. Over 95 per cent of the population identified as White in these areas. • Within the White ethnic group, the North East had the highest percentage of White British at 93.6 per cent, followed by Wales at 93.2 per cent and the South West at 91.8 per cent. • Wales had the lowest percentage of minority ethnic groups, with the majority at 1 per cent and below (excluding Any Other White at 1.8 per cent). '" Also see here on the index of ethnic diversity: data.london.gov.uk/datastorefile ... ndices.pdf Quote In national rankings of ethnic diversity indices 26 of the top 30 local authorities are London boroughs, with four outside London (Slough, Luton, Leicester and Birmingham).'" Now let me guess, you read the Daily Mail article about Manchester a few weeks back that said "Cheetham Hill Road is one of Britain's most diverse streets."

Quote ="sally cinnamon"No it isn't. www.ons.gov.uk/ons/dcp171776_290558.pdf Also see here on the index of ethnic diversity: data.london.gov.uk/datastorefile ... ndices.pdf Now let me guess, you read the Daily Mail article about Manchester a few weeks back that said "Cheetham Hill Road is one of Britain's most diverse streets."'" On your basis, Leicester shouldd be an economic powerhouse and Bradford in the top division too.

Quote ="sally cinnamon"No it isn't. www.ons.gov.uk/ons/dcp171776_290558.pdf Also see here on the index of ethnic diversity: data.london.gov.uk/datastorefile ... ndices.pdf Now let me guess, you read the Daily Mail article about Manchester a few weeks back that said "Cheetham Hill Road is one of Britain's most diverse streets."'" On your basis, Leicester shouldd be an economic powerhouse and Bradford in the top division too.

Quote ="sally cinnamon" Now let me guess, you read the Daily Mail article about Manchester a few weeks back that said "Cheetham Hill Road is one of Britain's most diverse streets."'" He an article from an unreliable comic: www.guardian.co.uk/uk/2012/dec/1 ... -diversity

Quote ="sally cinnamon" Now let me guess, you read the Daily Mail article about Manchester a few weeks back that said "Cheetham Hill Road is one of Britain's most diverse streets."'" He an article from an unreliable comic: www.guardian.co.uk/uk/2012/dec/1 ... -diversity

There is absolutely no need for the majority of the jobs in the service/banking sector to be loacted in [iany[/i particular part of the country anymore never mind London and the SE and it is those sectors that provide most of London's contribution to the countries GDP. The skilled / educated workforce follows the jobs not the other way around. I did it myself on leaving Uni. I worked in London for 12 years. Most of my contempries did.

These days I still work for a very large financial software company but "up north" and at least two days a week from home. The head office is in the SE but it is small. The largetst UK offices are in Birmingham. They just shut an office in Regents street to move the techies from a company recently taken over out of central London. It makes no sense paying London rents/rates when the jobs can be done elsewhere.

As to moving north being a problem, the BBC seem to be doing OK in Salford and the effect on the area and local economy is very positive. If an organisation like the BBc can do it I am sure others who basically just need office space can do the same.

Of course simply moving jobs about the country won't automatically increase the coutries GDP by a significant amount if at all but I would not be surprised if moving out of the overcrowed south didn't have at least some positive effect in terms of less lost productivty due to all the problems that brings and a lot lower cost base.

If it was cheaper to produce outside London then why aren't private companies naturally doing it?

They all want to maximise profits right?

Well the plans for that regeneration – primarily the Etihad Campus, plus housing and amenities – had barely come off the planning board at that stage. There is plenty of regeneration that has been going on in that area for some years – new blocks of flats all over the place, for instance, The tramline is now up and running. But I appreciate that these are facts.

It is worth noting that the area that is now being prepared for the Etihad Campus used to be home to many engineering companies. They died in the 1980s when that evil old bitch decided that we needed to have an economy based on shopping and finance.

I know of one major company that looked at relocating North, to the premises of a recently taken-over company. What killed the deal was the suggestion that those moving North should be given a hefty, one-off relocation bonus to compensate for the potential of lost equity in their employees' houses.

In less than a generation we'd gone from compensating someone for moving to a high property value area to the exact opposite.

It [iis [/icheaper to produce outside London. That is why the company I work for has its offices where it has. It needs a presence in London so has a small head office there but everybody else is elsewhere.

When I worked in London I worked for a Software House that was doing a lot of work on back office trading systems around the time of the Big Bang. The office was just south of London Bridge a stones throw from Guy's Hospital. This though was outside the "City" and believe it or not many City firms viewed software companies that weren't actually located [iin[/i the City themselves as some sort of second rate company. So one and by no means small reason is simply historical intransigence in my opinion.

This was before widespread use of the Internet, email and so on but now there is just no reason to locate any software development outfit in the south east. Post big bang with the stock market completely electronic you could move entire trading floors out of London and no one would notice you had done it.

If we can outsource to India we can outsource out of London.