Supplementary memorandum by the North
West Regional Assembly (NWRA) (RG 87(a))
NEED TO
ADDRESS ISSUE
OF SUB-NATIONAL
INEQUALITY
Please find supplied EUROSTAT statistics which
details the extent of sub-national inequality within the UK (as
measured by GDP per inhabitant) and a graph which shows that the
degree of sub-national inequality in the UK is greater than in
any of the other European Union 25 countries.
In light of this information—and the fact
that Government progress with regards its REP PSA2 target has
apparently slowed from 1% in 2004 to 0.1% in 2005—the NWRA
would request that the Select Committee report on the Future of
Regional Government considers making specific recommendations
concerning the issue of sub-national inequality. (see 19 below)
Senior members of the Government, writing in
a personal capacity, have recently re-iterated that reducing regional
economic disparity is essential for a sustainable UK economy.
(see 20 below) However there are concerns that this fact may become obscured
in preparations for the Olympics in 2012 and in the genuine debate
about the future role of cities and regions.
For example, you may wish to ask what importance
the Government attaches to regional inequality and whether and
whether the Government has a vision of a level of sub national
inequality that is economically compatible with the sustainable
long term growth of the economy as well as socially acceptable?
You may also want to ask how the Government
is addressing sub national inequality for example by "northern
proofing" its policy decisions. We would also be grateful
if you were to ask a specific question regarding whether considerations
arising from the REP PSA2 target were (or should have been) considered
in the final decision regarding the location of the super-casino.
As we discussed in our original submission,
there is the related question for your Committee and the Government
of whether the need to address sub-national inequality has implications
for further developments in asymmetrical devolution ie should
the north/the northern regions/northern cities have a bigger voice/greater
powers?
In conclusion, the NWRA believes that as well
as the important governance issues which your Committee will undoubtedly
highlight, the Government should not lose sight of the importance
of addressing sub national inequality. It is this that will ensure
that the North West and its cities will get the support and the
policy decisions they need.
19 This would be in keeping with our initial
submission to the inquiry which highlighted sub regional inequality
and the need for Northern Way regions to be supported in order
to achieve their potential contribution to UK plc.
20 "We [the Government on appointment in
1997] knew that we had to reduce the disparities in growth and
economic performance between and within the regions and nations
of the UK, if we were to secure a stable and successful national
economy for the long term." Evolution and Devolution in England
by Ed Balls, John Healy and Christopher Leslie, NLGN 2006.
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