Almost half of households do not see benefits of economic growth, report says
Analysis has found a "stark" gap in the spending power of households in the north and south of England on average.
By BBC News
Almost half of households in Britain live in areas where economic growth is not leading to a better quality of life, according to a new report by PwC.
The analysis says 12.5 million households, or 46%, are in parts of the country where rising growth is not translating into higher spending power. It found a marked North-South divide, with every region in the north of England, the Midlands and Wales below the national average.
Households in the north east of England were said to have spending power 6.6% below the average, while the north west was £1,493 lower and Yorkshire and the Humber £1,917 lower.
By contrast, households in the South East were found to be 9% above the average, worth an extra £2,154 a year, with London also above average.
PwC said spending power is a useful measure of whether growth is improving living standards, as it looks at income after tax and housing costs and takes household size into account.
The report said Scotland and the south west of England were exceptions to the wider pattern, with spending power slightly above the national average.