New Treasury analysis reveals that residents in Northern England receive higher levels of public service funding per person than those in the South. While political leaders argue the North has been historically disadvantaged, the data shows a significant per-capita spending advantage in several Northern regions.
The £2,000 per capita disparity in Northern spending
Treasury figures indicate a stark difference in how government resources are distributed across the country. While the national average for public services per person stands at £13,134, the distribution is far from uniform. Residents in the North East receive the highest level of support at £14,102 per head, followed by the North West at £13,835.
In contrast, the South receives significantly less per person. As the report highlights, those living in the South East receive an average of £12,031 annually, while the South West receives £12,432. This creates a gap of nearly £2,000 per person when comparing the most heavily funded Northern regions to their Southern counterparts. These figures encompass a wide spectrum of essential services, including health, education, transport, housing, and economic development.
Challenging the Prime Minister's resource diversion promises
The Prime Minister has previously pledged to divert more power and financial resources toward Northern England. His political stance is built on the argument that the region has traditionally lost out to wealthier territories in the South of England. This commitment to "levelling up" has been a cornerstone of his administration's regional policy.
However, the Treasury's analysis provides a counter-narrative to this political position. By showing that Northern regions already benefit from higher per-head spending, the data complicates the claim that the North is being systematically short-changed. The report suggests that, in terms of raw per-capita value, the North may already be receiving more than its fair share of national resources.
Greg Smith's critique of "entirely unfair" taxation
Conservative MP Greg Smith has reacted strongly to these findings, labeling the current funding distribution as "entirely unfair" to Southern residents. Smith argues that his constituents are being over-taxed to fund national services that do not address their specific local requirements. He contends that the current system disproportionately directs tax revenue to other parts of the country rather than local needs.
Smith specifically highlighted the deterioration of local infrastructure, noting that roads are falling apart due to a lack of necessary resources. According to the report, Smith is calling for a base level of fairness across all regions, warning that the current funding model risks creating further national division rather than economic cohesion.
What drives the North's higher per-head service costs?
While the Treasury figures provide a clear snapshot of spending levels, they leave several critical questions regarding the underlying causes of the disparity. The report does not specify whether the higher spending in the North East and North West is driven by higher service demand, higher costs of delivery in those specific geographies, or targeted regional policy interventions.. It remains unverified whether this spending translates to better outcomes or simply higher costs of operation.
Furthermore, the source does not provide a formal rebuttal from the Prime Minister's office regarding these specific findings. It is currently unknown how the government intends to reconcile its promise of increased Northern investment with data suggesting the North is already ahead of the national average.
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