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Recession Puts The North-South Divide Back On The Misery Map

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http://www.guardian.co.uk/business/2011/nov/10/north-south-divide-widens-pwc-study

Britain's north-south divide has widened since the start of the recession and is likely to worsen as households in the north-east and Yorkshire are among the hardest hit by rising unemployment and falling house prices, according to a report.

Stalling wage growth, rising taxes, public sector cuts and personal insolvencies are also piling the pressure on people, say economists at PricewaterhouseCoopers in their regional household financial stress index.

Combining those factors paints a picture of a capital little hurt by the downturn compared with growing misery in Wales, the West Midlands and northern regions.

"Our research also highlights how different London's experience of the recession has been from the rest of the economy. London performs worse than many other regions on measures such as unemployment rates, but our index demonstrates that the impact of the recession on household financial stress has been less in London than in other regions," said John Hawksworth, chief economist at PwC.

The north-east and Wales were found to be the regions that have suffered the greatest increases in household financial stress since the recession began, followed by the West Midlands. A mixture of relatively large increases in unemployment and economic inactivity rates, marked falls in house prices, and significant increases in personal insolvencies all contributed to those rankings, PwC said.

No real surprises but once again it highlights that rebalancing needs to happen at the internal level as well as at the international level. Interest rates have always been set for London which has constantly killed any economic recovery in the North.

"Northern unemployment is an acceptable price to pay for curbing southern inflation" Eddie George former Governor of the Bank of England

It's been an official policy for quite some time.

However pumping in public sector jobs clearly hasn't helped create sustainable economies in these regions.

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The Welsh Assembly has postponed the major cuts until next year.

It turns out that the Welsh Assembly now only has a 40 million reserve for emergencies such as flu, winter hospital beds, road gritting, etc, as it has been eating into the reserve throughout this financial year.

Wales is fecked but house prices remain high. Good ole' Wales. :blink:

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or rather, the North took the p1ss more for the last decade and lived even further beyond its means and was overemployed in a bloated public sector paid for by the South.

It was only a few years ago, that the Tykes, the Welsh and the Northerners were sounding like the Irish "we're great, London has had it", "it's all up North now", we can have it all..... er, nope, what you were doing was overspending to an even greater degree....... and guess what, when the music stops, your chair was on finance from DFS and it's been repo'd.....

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or rather, the North took the p1ss more for the last decade and lived even further beyond its means and was overemployed in a bloated public sector paid for by the South.

It was only a few years ago, that the Tykes, the Welsh and the Northerners were sounding like the Irish "we're great, London has had it", "it's all up North now", we can have it all..... er, nope, what you were doing was overspending to an even greater degree....... and guess what, when the music stops, your chair was on finance from DFS and it's been repo'd.....

Clearly, unlike of course the City of London.

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or rather, the North took the p1ss more for the last decade and lived even further beyond its means and was overemployed in a bloated public sector paid for by the South.

It was only a few years ago, that the Tykes, the Welsh and the Northerners were sounding like the Irish "we're great, London has had it", "it's all up North now", we can have it all..... er, nope, what you were doing was overspending to an even greater degree....... and guess what, when the music stops, your chair was on finance from DFS and it's been repo'd.....

What pushed up prices in those areas esp in/near National parks Yorks/Lakes/Scotland/Penines/Wales/Devon/Cornwall etc was overpaid cash-rich Sarf Easters buying 2/3rd homes or retiring to small Yorks farms etc - setting the 'going rate'

- the locals on a LOCAL wage were forced to borrow ever bigger multiples of their salary to afford the most meagre properties stuck up in price by greedy Estate Agents.

The banksters willingly obliged/facilitated with Chinese/Asian money

Edited by erranta

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What pushed up prices in those areas esp in/near National parks Yorks/Lakes/Scotland/Penines/Wales/Devon/Cornwall etc was overpaid cash-rich Sarf Easters buying 2/3rd homes or retiring to small Yorks farms etc - setting the 'going rate'

- the locals on a LOCAL wage were forced to borrow ever bigger multiples of their salary to afford the most meagre properties stuck up in price by greedy Estate Agents.

The banksters willingly obliged/facilitated with Chinese/Asian money

Yep. Spot on.

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Britain's north-south divide has widened since the start of the recession and is likely to worsen as households in the north-east and Yorkshire are among the hardest hit by rising unemployment and falling house prices, according to a report.

Housing is cheaper in the North.

Lower interest rates favour those with larger mortgages i.e. Southerners

The savers up North are paying the mortgages of Southerners.

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or rather, the North took the p1ss more for the last decade and lived even further beyond its means and was overemployed in a bloated public sector paid for by the South.

It was only a few years ago, that the Tykes, the Welsh and the Northerners were sounding like the Irish "we're great, London has had it", "it's all up North now", we can have it all..... er, nope, what you were doing was overspending to an even greater degree....... and guess what, when the music stops, your chair was on finance from DFS and it's been repo'd.....

Or could it be............ the north and midlands created the wealth of the country which the south then spent the next 100 years p!$$ing up the wall. When faced with major structureal and economic issues, the route taken by Thatcher and her accolytes was to destroy the core of manufacturing industry and let rip with the big bang and the southern based focus on finance and confetti manufacturing.

Germany, on the other hand concentrated on continuing to actually make things, had higher wages and less labour flexibility, lower property prices and magically came out on top.

I'm overjoyed that my modestly priced but rather large house 10 minutes from the countryside is comfortably paid for and all the mugs down your way haven't cottoned on who has the best deal.

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the world has changed. It is no longer an Empire where we can charge people what we like for shoddily made goods they are forced to buy after selling us their raw materials at an undervalue.

Calling up Thatcher is like Godwin's law, isn't it ?

Germany was rebuilt by American money - when Britain wasn't..... the Wirtschaftswunder was done by Uncle Sam.

As for the SE buying up all these homes, ask yourself, who sold them to them and what happened to the money - oh yes, the locals....

As for subsidising mortgages, given the LTV figures and repo stats for who is in trouble, I suspect that the Northern savers are also bailing out the Northern indebted.....

It's quite amusing how the donkey jacket wearers turn this into an anti Thatcher anti Southerner argument.... - the North DID overextend itself on a false premise..... or do refuse to accept that basic truth ?

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It's grim up north. Everyones unemployed, houses are all old and knackered and in need of major renevation. Many don't have central heating. Dogs roam the streets along with the ferral youths. Shops are all closing with broken windows. People are all weird and speak sloppy English, say things like 'good morning' and then smile in this weird way you don't get in the South.

So basically don't go North, it's vile and dangerous. There is nothing for you there.

[i hope that keeps the snobby isolated southerners away from the nice friendly north]

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The North has some amazing countryside, and some amazing people. And the sense of community tends to be stronger in some places than down South. However, it also has millions of deluded people who are desperate to blame someone else for their problems and refuse to accept their responsibility for their own position.....

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The biggest recipient of Marshall Plan money was the UK. More than twice as much as Germany.

We repaid the money. As far as I am aware Germany didn't.

Edit: Oops, I was thinking of lend lease to the UK.

Edited by The Masked Tulip

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It's a strange one up here.

Now the ECONOMIC outlook is not as good in the north, and most of the ECONOMIC migrants have either fled down south or elsewhere, all of a sudden the local Labour force aren't regarded as greedy or lazy by employers.

Well what da ya know.........

It's also quite amusing that the North and Wales was effectively sacrificed for the sake of London's financial sector.......and you lot still managed to fook it all up.

:lol:

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  • 276 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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