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London's Economic Boom Leaves Rest Of Britain Behind

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http://www.theguardian.com/business/2013/oct/23/london-south-east-economic-boom

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London's economy is doing even better after the banking crash than during the bubble – while nearly every other part of the UK has seen its economy shrink by comparison. Exclusive findings published by the Guardian show that London and the south-east are racing away from the rest of the UK at a pace that would have seemed almost incredible at the height of the financial panic.

During the boom from 1997 to 2006, London and the south-east was responsible for 37% of the UK's growth in output. Since the crash of 2007, however, their share has rocketed to 48%. Every other nation and region – with the exception of Scotland – has suffered relative decline over the same period. The upshot is about a quarter of the population is responsible for half of the UK's growth, leaving the remaining three-quarters of Britons to share the rest.

The research also shows that the UK's highest-earners have become relatively more prosperous after the crash, while many on middle incomes are being squeezed hard. In austerity Britain, the top 20% of earning households are enjoying 37.5% of all Britain's income growth, even after accounting for taxes and benefits.

These findings will embarrass the government, especially as they come shortly before the release of the latest GDP figures on Friday. Ministers are poised to celebrate news that the economy is at last enjoying strong growth, and may even have racked up its best quarter in 13 years. But the Guardian's analysis raises questions about who is enjoying Britain's growth and how sustainable it is, and will fuel the debate over who should bear the burden for an economic crisis that began in the Square Mile.

London sucking the life out of the rest of the UK. Still as long as those in the City get the rewards for all their hard work creating more debt who gives a 5h1t.

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

The North can be sacrificed as it doesn't matter.

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http://www.theguardian.com/business/2013/oct/23/london-south-east-economic-boom

London sucking the life out of the rest of the UK. Still as long as those in the City get the rewards for all their hard work creating more debt who gives a 5h1t.

Well it was Labour's solution to tax the whole country to bail out the banks. I guess this is the result.

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What did they think would happen when the UK's entire economic strategy was built on taxing London and distributing the proceeds to the provinces? As if the centre wouldn't just scrape off their take and leave everyone else worse off.

If anything, what we're seeing now is rampant inflation in the South in order to sustain the North.

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Well it was Labour's solution to tax the whole country to bail out the banks. I guess this is the result.

It was indeed, but I don't recall any Conservatives voting against it, do you?

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The Tories would have allowed the banks to fail...

The Tories would have allowed the banks to fail...

The Tories would have allowed the banks to fail...

etc

repeat until you believe it.

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The Tories would have allowed the banks to fail...

The Tories would have allowed the banks to fail...

The Tories would have allowed the banks to fail...

etc

repeat until you believe it.

John Major would have allowed the banks to fail.

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What did they think would happen when the UK's entire economic strategy was built on taxing London and distributing the proceeds to the provinces? As if the centre wouldn't just scrape off their take and leave everyone else worse off.

If anything, what we're seeing now is rampant inflation in the South in order to sustain the North.

The inflation in London/the South is coming from the fact that the money tap through which the billions are being pumped to keep the financial system afloat is located in The City and Canary Wharf. The 'wealth effect' of this transfer of wealth via money printing and the resulting inflation spreads outwards from there.

The net result is to keep London and the SE prosperous even as people in the rest of the country find themselves ever shorter of cash with the resulting devastating effect on the local economy.

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Hmmnnn... BofE prints billions of pounds... and gives to an industry mainly located in London.

Every other industry, and region, suffers from their money devaluing, because of said printing.

What could explain London doing so well, and the rest doing badly?

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Hmmnnn... BofE prints billions of pounds... and gives to an industry mainly located in London.

Every other industry, and region, suffers from their money devaluing, because of said printing.

What could explain London doing so well, and the rest doing badly?

it's almost as if..

ssshhh

it was planned....

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Well it was Labour's solution to tax the whole country to bail out the banks. I guess this is the result.

Yep, if you privatise the profits and socialise the losses, of course they'll keep their wealth and capitalise on it.

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Course he would...

He wouldnt have empowered the FSA in the first place and introduced the light touch b****x which made us the casino capital of the world

That one sits fairly and squarely with Brown and his cronies

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Hmmnnn... BofE prints billions of pounds... and gives to an industry mainly located in London.

Every other industry, and region, suffers from their money devaluing, because of said printing.

What could explain London doing so well, and the rest doing badly?

There's that. Then there's infrastructure spending too. Half of London's big railway stations are being or have just been rebuilt. Victoria, London Bridge .. both being completely redone, both of them bigger than any station outside of London. they just finished Kings X & St. Pancras. Magnificent. Crossrail is just massive, huge individual sites right across the centre of town. biggest construction project in Europe. Then you've got the heavily subsidised Olympics last year of course ...

The midlands and northwest conurbation has a similar total population to the South East of england and is similarly densely populated, albeit not around one large city. However, the transport links (I mean road, rail and air) in that part of the country are pathetic compared to the big smoke and the difference is only getting bigger, especially now HS2 is probably going to get canned. No wonder the north/south divide is growing.

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There's that. Then there's infrastructure spending too. Half of London's big railway stations are being or have just been rebuilt. Victoria, London Bridge .. both being completely redone, both of them bigger than any station outside of London. they just finished Kings X & St. Pancras. Magnificent. Crossrail is just massive, huge individual sites right across the centre of town. biggest construction project in Europe. Then you've got the heavily subsidised Olympics last year of course ...

The midlands and northwest conurbation has a similar total population to the South East of england and is similarly densely populated, albeit not around one large city. However, the transport links (I mean road, rail and air) in that part of the country are pathetic compared to the big smoke and the difference is only getting bigger, especially now HS2 is probably going to get canned. No wonder the north/south divide is growing.

Yes, I think the Scottish Independence Vote should be based on the M25 being the border, it's a far more significant border than the england-scotland one..

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Yes, I think the Scottish Independence Vote should be based on the M25 being the border, it's a far more significant border than the england-scotland one..

Nicely put.

I was talking about London as a parasite to a couple of relatives who live in Wimbledon. They reacted quite emotionally to what I was saying, but then they admitted that their high paying jobs leave them right on the financial edge every month. They are mortgagors from 10+ years ago, but it's still difficult for them.

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Course he would...

Depends. The UK's transformation into parasitic banking state was only complete by the late 2000s.

In the late 1980s, UK financial debt was no larger than the US, by the late 1990s still only on a par with the EU average. Only by 2005/6 did the UK become a bigger, badder ireland/iceland/cyprus.

So maybe he would have. Failure wouldnt have caused as much carnage back then.

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