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  1. #1

    Economics/Inflation/UK

    The Queen signals her concern at the possible break up of the UK-the Sunday Times, 29/05/11.
    Can it be avoided, when some people consider we are at least two nations at present-the affluent London and SE and the poorer rest of the country.
    Consider inflation, rising in London and SE, e.g. property and rent prices, and the rest of country, prices and rents tending to drop.
    Consider other differences, London and SE the seat of financial and other services, which are mainly non-exportable, ref recent blogs/articles from Stephanie Flanders of the BBC.
    And other useless and expensive services like like legal boundary disputes, which cost above 30000. (thirty thousand) if they go to court, when the disputes are normally about less than 5000 (five thousand) of land. Talk about proportionality.
    Also the differences between the rich, mainly in the London and SE region., as opposed to elsewhere where there is some real poverty. Ref BBC Business News 04/11/2010-Third of Liverpool households are jobless, or The Independent-Johann Hari- David Cameron's assault on the homeless is Dickensian.
    All this whilst the richer in mainly London and SE get richer, and are sheltered from the effects of recession Ref The Independent-07/11/2010-third of Britons 'using savings as costs rise' and 27/05/2011 Bonus payments bounce back. If trends continue, income for the highest paid will account for 14% of the country's total by 2030-the same proportion as in 1900, for the top thousandth of the British working population.
    Can this continue or is the breakup of the UK inevitable?
    Suggestion is that a cultural change is necessary. But how to achieve it?
    Additional Regional Assemblies for Midland and North, South West, and London and SE, with powers devolved for each region to deal with their own regional inflation rates?
    Prof Eman

  2. #2
    Some facts and figures to support the above.
    Ref BBC News Business 31/05/2011
    House Prices edging lower, Land Registry figures show.
    The LR Survey recorded distinct regional variations in house price movements.
    London's annual change now stands at 5%.
    ONLY London and SE experienced increases in their average property values over the last 12 months.
    By contrast prices in north- east fell by 8% in the year to April.
    Case made for different bank interest base rates in different regions?

  3. #3
    OK, I'll bite.
    @ Anonymous - London & the SE bashing always neglects to credit the contribution to GDP that this area makes. Splitting this area from the rest of the UK doesn't solve the issues of the North, Midlands & South West (indeed for these already effectively subsidised regions such a split may plunge them further into the mire).
    London bankers may well have contributed to the level of economic hardship, but it wasn't just them. The public has to take a proportion of the responsibility too. Example, the strength of Germany is in part to the lower levels of personal debt. As must government (or all shades).

    @ Anonymous 1 - Banks are businesses. If it were in there interests (i.e. greater profit) to promote differential rates across the country, they would do so (we'll ignore the increased opportunity for fraud and the additional administration). However, I cannot see how such activity would benefit the non-London/SE regions. The situation would remain the same (if not worse). Those with a mortgage already would be happier, those looking for one would be happier until the realisation that demand increase will inflate house prices with the consequence of being priced out of the market. Low interest rates merely encourages more borrowing - I think you'll find this is what got us into this mess in the first place. What the non-London/SE regions really need is more opporortunities and more real jobs that pay a living wage.

  4. #4
    As for regionalising inflation. Nice concept, but the market is determining that anyway, whilst I'd no sooner trust local politicians than national ones. They're all in it together...

  5. #5
    40% of London are immigrants I believe! So how British is London? Not very. I live in Lancashire and feel more in tune with the Scots and Welsh personally. They face the same challenges as we do in the North West. Let the South Easterners pay for their Olympics as they will benefit. Whilst we're at it let's do a Libya and take up arms against that total and complete idiot David Cameron! He won't resist with military force because Mr Gadaffi was wrong to do that...that's why we are interfering in his Country.

    I really am proud to British, but not of the way this Country is being run!!!


 

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