The Center for Cities think tank reported that a study of cities in England and Wales showed that the North-South cost of living gap was exacerbating regional inequality. The report showed that eight of the 10 cities with the highest energy costs were in the north, the Midlands and Wales, where workers were £340 a year worse off than their counterparts in the south. While the annual rate of inflation for the UK was 9.1% in May, the City Center said in Burnley it was 11.5%, 30% higher than 8.8% in London and Cambridge. Older, less well-insulated housing stock and higher driving costs in cities with worse public transport than London and the South East meant local inflation rates were 11% in Blackpool and Blackburn and 10.9% in Bradford. In the Midlands, Leicester inflation was 10.8%, slightly higher than 10.7% for Swansea in Wales. Andrew Carter, the chief executive of the Center for Cities, said the inflation gap between north and south underlined the need for Boris Johnson’s successor to stick to the prime minister’s flattening agenda. “The whole country has been affected by the cost of living crisis, but our research clearly shows that some areas are being hit much harder than others. Worryingly, the North, Midlands and Wales are struggling with higher rates of inflation which are further squeezing finances and leaving their residents hundreds of pounds worse off. “These inequalities prove that leveling our cities to tackle spatial inequalities and future proof the economy is more important than ever. “In the short term it is imperative to give the most vulnerable the support they need to overcome this crisis. Even if the political situation in Westminster is uncertain, ministers must act quickly to protect the worst-hit areas and ensure they are not left even further behind.” Subscribe to the Business Today daily email The report said annual energy bills in Burnley, where 70% of homes have an energy efficiency rating below zone C, were £1,272 on average. In Milton Keynes, where 50% of homes have a high energy efficiency rating, annual bills were £889 on average. In May, the then chancellor Rishi Sunak announced a £15bn package to help reduce the cost of living, but the think tank said more needed to be done to support vulnerable households. It called for benefits to rise in line with inflation, the temporary £20-a-week increase in Universal Credit announced at the start of the pandemic to be reinstated and one-off payments for those in poorly insulated homes to help with energy bills.
