The State of Britain

Mickleover in Derby the wealthiest area in England but Highfield North in Leicester the poorest, all of the region’s LEPs see productivity growth

Reading Time: 3 minutes

The ONS has published average household disposal income estimates for England and Wales in 2018. The incomes shown are after tax and housing costs are taken off.  The analysis has shown that 87% of local areas had an average household income of between £22,500 and £39,200; within this over a third were between £28,000 and £33,600.

Of the 50 areas with the highest total incomes, 41 were in London, with the lowest incomes more widely spread geographically across England and Wales. The North East, East England, London, and the South East had no local areas in the bottom 50.

The wealthiest area in England and Wales was Mickleover in Derby with incomes of £52,200 and the poorest was Highfield North in Leicester with £12,500. The two areas are 30 miles from each other and ranked 7200 places apart.

Four other areas of the region also made the wealthiest top ten; Allestree in Derby, Lady Bay in Nottingham and parts of South Northamptonshire.

Like most regions of the UK, output per hour in the EM is below the UK average. Productivity per hour in the region was 13.5% below the UK average which ranked the region eighth nationally for 2018. One reason for this is the high levels of hours worked and high productivity in London and South East which pulls up the UK average so much that all other regions fall below it.

The ONS has now released data for a longer period and at a subregional level. This gives further insight into EM’s performance.

Perhaps the most useful is the 2018 results for the 44 enterprise regions in the UK which comprise the 38 English local enterprise partnerships (LEPs) and six enterprise regions in Scotland, Wales and the border regions.

Thames Valley Berkshire LEP had the best productivity (in terms of hours and jobs) in 2018 at 35% above the UK average whereas the Black Country LEP at 24% below was the worst.

All of the region’s LEPs recorded productivity below the UK average. The best was SEMLEP ranked 13th at 4% below, the rest all performed poorly and ranged from 10% to 18% below the UK average. Leicestershire LEP, Derbyshire and Nottinghamshire LEP and Greater Lincolnshire LEP were ranked 24th, 28th and 36th.

In terms of productivity growth between 2010 and 2018 the Coventry and Warwickshire LEP was top with growth of 16%. Twelve economic regions recorded productivity levels lower in 2018 than 2010. The worst performer was the Buckinghamshire Thames Valley LEP which saw productivity drop by 11%.

The EM’s results for productivity growth were better. With growth of 7% SEMLEP was ranked 6th in the UK. Greater Lincolnshire LEP was ranked 18th nationally with growth of 3% just beating Derbyshire and Nottinghamshire LEP. Leicestershire LEP was ranked 29th with 1% growth which meant none of the region’s LEPs recorded productivity levels lower in 2018 than 2010.

Despite this, all of the EM’s three subregions recorded productivity below the UK average. Leicestershire, Rutland and Northamptonshire -12%, Derbyshire and Nottinghamshire -14% and Lincolnshire -18%.

At a county level, with the exception of South Nottinghamshire (+0.2%) all of the EM’s economic regions recorded productivity below the UK average. North Northamptonshire had the lowest productivity, 24% below the UK average.

The growth in hours worked between 2010 and 2018 in Leicestershire, Rutland and Northamptonshire was 11%, beating Derbyshire and Nottinghamshire which recorded 9%. In UK terms this level of growth was in the top half of the country’s 40 subregions. Lincolnshire grew 5% which ranked 38th.

If the increase in economic output is also factored in then the sub regional performances are also good, mirroring the region’s LEPs. Lincolnshire was ranked 8th in the UK with growth of 8%, Leicestershire, Rutland and Northamptonshire was placed 15th with 4% and Derbyshire and Nottinghamshire 17th with 3%. 

More data from the ONS showed unemployment in the region was 8,000 higher at 98,000 between November and January; the uplift of 0.3% took the overall rate to 3.9%. Northern Ireland had the lowest rate of 2.4%, the North East the highest with 6.2%, with the UK rate at 3.9%.

The South East had the highest employment rate at 80% which compared with 78% in the EM where 2.4m are employed; the UK rate was 76.5%.

The EM’s average property price decreased by 0.4% to £195,707, which took the annual increase to 2.3%. In comparison, UK prices decreased by 1.1% to £231,185 during January, an annual growth rate of 1.3%.