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Friday 9th May 2008
London 'opens up' productivity gap

London 'opens up' productivity gap

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A gaping divide is emerging between the economic productivity of different regions of the United Kingdom, a new report has found.

The Office for National Statistics' Regional Trends Survey found that London and the south-east were head and shoulders above Wales and other lagging regions in terms of business productivity, with job creation in high value added sectors like finance largely centred around the capital.

Workers in the capital and the surrounding Home Counties generate as much as a third of the nation's wealth, amounting to some £375 billion per year in goods and services, the study found.

Meanwhile, Londoners produce £29,000 worth of goods and services per head on average, compared to only £14,396 for Welsh workers.

Paul Vickers, regional analyst for the Office for National Statistics, said: "The South East and London dominate the gross value-added charts.

"London's domination is such that it shows a productivity level nearly 50 per cent higher than the South East. The figures show there might be a slight widening of the North-South divide at the moment."

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