Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what steps her Department is taking to reduce levels of (a) poverty and (b) economic inequality in the North West; and what recent assessment she has made of trends in the level of regional disparities in (i) income and (ii) living standards.

The Government has set out a Plan for Change that includes raising living standards in every part of the United Kingdom. To deliver this, we have taken action to support households facing the greatest hardships by increasing the National Living Wage by 6.7%, introducing a Fair Repayment Rate to cap deductions from Universal Credit, uplifting the Universal Credit standard allowance to 5% above CPI by 2029-30, and expanding the Warm Homes Discount to every billpayer on means-tested benefits. Furthermore, at the Spending Review we expanded Free School Meals to lift 100,000 children out of poverty, funded the biggest boost to social and affordable housing in a generation, provided £1bn a year (including Barnett impact) for a new Crisis and Resilience Fund, and extended the £3 Bus Fare Cap in England. This is in addition to investing in 350 deprived communities across the UK, to fund interventions including regeneration, community cohesion and improving the public realm.

The Government is also investing in infrastructure in the North West to spur economic growth, boost wages and increase living standards, providing £4.1bn to the North West via the Transport for City Regions fund. It has recommitted to £160m of funding over 10 years for Investment Zones in Greater Manchester and Liverpool, and reconfirmed support for Liverpool City Region Freeport. Local partners expect Greater Manchester Investment Zone to deliver £1.1 bn in private sector investment and 32,000 jobs, and expect Liverpool City Region’s Investment Zone to generate £320m in private investment and 4,000 jobs.

The latest Office for National Statistics data shows that in 2022 Gross Disposable Household Income (GDHI) per head was £19,752 in the North West compared to £22,789 for the UK. The Plan for Change sets out that living standards at a regional level is measured by regional Gross Domestic Product (GDP) per head. The latest ONS data shows that GDP per head, in real terms (2022 prices), was £33,170 per head in the North West and £37,135 per head for the UK in 2023. GDP per head was £23,555 per head in the North West in 1998 compared to £28,570 for the UK.