UK finance minister Healey seeks growth through decentralising power

UK finance minister Healey seeks growth through decentralising power. Image source, Getty ImagesByMichael Race and Mitchell Labiak, Business reportersPublished3 September 2026Almost half of people in Britain live in areas where economic growth does not translate into a better quality of life with a "stark" North-South divide in the spending power of households, a new report finds.

What happened

Household spending power is seen as a good measure of whether economic growth is improving living standards. The report argued that the next phase of transferring power from central government to local authorities – known as devolution – "must allow local areas to retain more of the revenues generated by local growth alongside more freedom on how best to use resources". Fairphone seeks out ethically sourced materials and offers a high degree of repairability for its devices.

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Researchers at consultancy PwC said every region in the north of England, Midlands and Wales had lower spending power than the country's average, with London and the South East comfortably above.

The wider picture

The findings come as Prime Minister Andy Burnham has pledged to tackle regional inequalities in a bid to boost living standards across the country. 5 million households – 46% – lived in parts of the country where economic growth, often seen through increased business investment and job opportunities, was not leading to better living standards. 6% less spending power than the national average, equivalent to £1,542 less a year. The North West was £1,493 less, while Yorkshire and the Humber were worst off with spending power down £1,917 comparatively.

Meanwhile, households in the South East were found to have spending power 9% above the national average, worth an additional £2,154 a year, followed by London. The UK has seen years of slow growth, although the economy expanded by 1. Economic growth usually means people spend more, extra jobs are created, more tax is paid to the government and workers get paid better. According to PwC, "only a fraction" of a rise in GDP – the size of the economy – leads to increased spending power.

What has been reported

Researchers said while there was a clear North-South divide in the spending power of households, there were also examples of spending power differences within areas deemed better off, such as London and the south east. Though spending power in the south of England is impacted by higher housing costs compared to the north, the hit to households on average is softened by higher incomes and the divide remains, researchers said. Scotland and the south west of England were exceptions to the trend, the report added, because lower housing costs and smaller households meant spending power was slightly above the national average.

But it said success "should be judged not simply by whether local economies grow, but by whether that growth leads to greater prosperity, wider opportunity and better lives for the people and communities within them". Devolution has been a central part of Burnham's leadership so far, including his pledge to create "the conditions for good growth in every postcode". A government spokesperson said the creation of No10 North was part of its growth mission and would reshape "how the country is run".

"We have already announced unprecedented financial powers to English mayors so they can receive a share of income tax revenues to boost local economies and improve public services," they added. However, Conservative leader Kemi Badenoch has said that Burnham's "diagnosis" and "theory of growth is completely wrong".

What happens next

Contact formContact formRelated topicsCompaniesPersonal financeCost of Living More on this storyBurnham promises more devolution and public control of essential servicesPublished5 days ago TechGadgetsMobileThe Fairphone 6 Plus is the midrange phone we desperately neededFairphone’s proper US debut feels like a triumph in the middle of RAMageddon. If you buy something from a Verge link, Vox Media may earn a commission. See our ethics statement. by Allison JohnsonSep 6, 2026, 1:00 PM UTCIf you buy something from a Verge link, Vox Media may earn a commission.

Allison Johnson is a senior reviewer with over a decade of experience writing about consumer tech. She has a special interest in mobile photography and telecom. The Fairphone 6 Plus feels like an extremely average midrange Android phone and I couldn’t be more thrilled.

The report has been compiled by The Daily Waves using information reported across theverge.com, bbc.co.uk. Details are presented according to the information available at the time of publication and may change as authorities, organisers or other relevant parties provide updates.