Press Story

New analysis reveals the public spending gap threatening northern prosperity

As the Deputy Prime Minister prepares to address the first Convention of the North under the new government, the leading think tank for the north of England has published analysis showing that over the past decade, public spending on the region has grown less than in the rest of the country.

Between 2012/13 and 2022/23, total public spending increased by 18 per cent in the North. Meanwhile, it increased by 20 per cent across the UK, with the South East seeing the greatest increase at 25 per cent. The region with the lowest increase in public spending was the North East, at 15 per cent.

In 2022/23 (the latest available data), public spending per person in the North was £18,370. This compares with £18,551 across the UK and £21,117 in London. The region with the lowest public spending per person was the East Midlands, at £16,785.

Despite promises from the previous government to “level up the country”, today’s independent analysis shows that the political rhetoric failed to translate into spending reality - further entrenching the UK’s deep regional divides.

Now, ahead of Angela Rayner's appearance in front of leaders from across the North in Preston later today, IPPR North are urging the new government to take a different path to the previous government by “showing how they’ll deliver” on rebalancing the country.

Zoë Billingham, Director of IPPR North said:

“It’s time for spending decisions that truly serve the country - lifting our regions, reducing inequality, and making a tangible difference to peoples’ lives. This is our best shot at better growth, wages, opportunity, and health - and it requires fair public spending in our regions.

“Despite the rhetoric, our analysis shows the previous government underinvested in the North, breeding inequality and distrust.

“The new government must show how they’ll deliver change where their predecessors failed. It requires mature decisions: rebuilding the North’s foundations, betting big on regional renewal, giving local leaders certainty through place-based spending reviews, and empowering them with fiscal devolution—starting with a visitor levy. Only then can they hope to unlock the full potential of our regions and realise prosperity nationwide.”

ENDS

Contact: Rosie Lockwood, head of media and advocacy for IPPR North, on 07585772633 or r.lockwood@ippr.org.

Notes:

IPPR North spokespeople are available for interview in person at the Convention of the North in Preston.

IPPR North is the leading think-tank for the north of England, developing bold ideas for a stronger economy and prosperous places and people. For more information, visit ippr.org/north.

The figures in this press release are in 2024/25 prices and are IPPR North analysis of the ONS’s country and regional public sector finances data release, available at: Data related to Country and regional public sector finances, UK - Office for National Statistics