London and south east pay for rest of UK
The two regions contribute most to public spending via taxes, according to new research.
New research claims that London and the south east of England pay for the majority of public spending across the UK.
The two areas provide a net subsidy of 31% to the rest of the UK, says the Centre for Economics and Business Research (CEBR) thinktank. It has produced an annual study of public spending by region as a share of GDP for the tax year 2010/11.
At the other end of the spectrum, Northern Ireland receives a net subsidy of 29.4%, Wales 26% and the north east of England 22.2%.
However, Scotland receives no net subsidy, which has further fuelled the ongoing debate around independence. And using calculations by the University of Aberdeen, the CEBR estimates that revenue and taxes from the oil and gas industry cancels out any subsidy.
Here's how the UK's subsidies break down (the total UK deficit of roughly 10% is subtracted to give the figure in the third column):
|
Region/country |
Deficit |
Deficit (compared to rest of UK) |
|
London |
10.3% |
20.3% |
|
South East |
0.7% |
10.7% |
|
East of England |
-8.4% |
1.5% |
|
Scotland |
-10.0% |
0% |
|
South West |
-11.7% |
-1.7% |
|
East Midlands |
-14.9% |
-4.9% |
|
West Midlands |
-18.4% |
-8.4% |
|
North West |
-18.4% |
-8.5% |
|
Yorkshire and Humberside |
-18.7% |
-8.8% |
|
North East |
-32.2% |
-22.2% |
|
Wales |
-35.9% |
-26.0% |
|
Northern Ireland |
-39.3% |
-29.4% |
In London, the taxes paid by the population equate to 45% of the city’s GDP, mainly via higher Stamp Duty and the 50p income tax rate.
In effect, one pound in every five paid in tax by people in London is used for public spending elsewhere in the UK.
More: Would a simpler tax system leave you better off? | Treasury ‘didn’t know’ about write-off of £11bn unpaid tax
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Comments
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Does this survey include the like of the millenium dome, the olympics, and the subsidies South east commuters receive for their train journeys? Who pays the CEBR bills as a matter of interest?
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Bullsh*t. The North, the Midlands and other industrial heartlands made the goods which built the British Empire and made this country's wealth as a great trading nation, whilst the parasites in the City simply took the profits from industry. When you think about it nothing has changed in the City, they're still parasites. It's pay back time!
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Give the West Midlands our industry back and education. Close the M5 and M6 to inward traffic (except goods) and we will show you how to produce goods. The paper pushers of London and the South East with their dog eat dog, rat race culture would envy our work ethic way of life. You can also give Yorkshire back their coal pits and the North East ship building. We would welcome all the corner shops back too. Most new jobs the past few years have gone to people born outside of the United Kingdom; either because they have gone to immigrants or have been 'outsourced' overseas. You can't even buy decent fish and chips in this country any more and they charge a fiver for a poor imitation... Bigger chips and better batter!
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15 February 2012