Measuring Prosperity in Regions of the UK

Julian Gough

Published: September 2020

This article provides updated estimates of prosperity in regions of the United Kingdom using two measures - GDP per head and Gross Disposable Household Income per head in 2017. Official nominal data on these two measures is deflated by two approximate regional price indices to yield "real" estimates, allowing for differences in price levels between the regions. In "real" terms, on both measures, London is the most prosperous region by a considerable margin, while Wales and the North East of England are the poorest regions. These "real" estimates give a clear picture of the challenge facing the Government in "levelling up" the performance of the UK regions and the locations where government assistance is most needed.