Inequality to widen, says report

THE gap between successful and struggling regions of the UK is set to widen, according to a report by The Work Foundation think tank.
 
The foundation, acquired by Lancaster University in 2010, raises concerns that for the first time in over 40 years, the UK is without any national programme aimed at regenerating the most deprived communities.
 
It says Government spending on regeneration halved in 2011-12 and incentives such as Business Rates Retention and the funding mechanism tax increment financing (TIF) are likely to support growth mainly in already successful areas.

The report, “People or Place? Urban Policy in the Age of Austerity”, also concludes that without adequate funding or formal powers, Local Enterprise Partnerships – the Government’s replacement for regional development agencies – will be significantly less effective than previous schemes.
 
Its author Lizzie Crowley said: “While the government has committed itself to rebalancing the UK economy, their current hands-off approach is set to have quite the opposite effect. Current policies are likely to exacerbate regional economic differences via a ‘winner takes all’ approach, with poorer areas left to further decline.

“Doing nothing about deprived communities is not an option. The resulting economic decline is likely to bring about serious social and economic costs for individuals, local areas and national government.

“On the one hand, we need measures that allow more people to benefit from those areas that are more successful. But at the same time, we need targeted measures to ensure that struggling areas are not left without any support.”