Unemployment rates could reach ten per cent in the north of Britain within the next five years, a leading think-tank has warned.
Due to a combination of various factors, including public sector spending cuts and slow private sector growth, existing disparities in wealth across Britain will be further accentuated, according to the Centre for Economic and Business Research (CEBR).
Over the next five years, regions such as the north-east, north-west, Yorkshire, the Humber, West Midlands and Wales will see their share of economic output drop, the CEBR predicts.
At the same time, London, the south-east and the south-west will receive an even larger share of the economy.
"Bankrolling public sector employment in the north through the tax base in the south is clearly not going to be possible over the near future," said Douglas McWilliams, the chief executive of the CEBR.
"It will take some time for the private sector to adjust and fill the vacuum left once the public sector cuts are felt. This is likely to be an agonising transition."
Recently, the Daily Mail reported that Danny Dorling, professor of human geography at Sheffield University, led research which found the north-south divide was slowing slipping southwards, showing greater disparity between the regions.
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It's unfortunate but given the percentage of the local economy filled by the public sector in the north of the country it is not at all surprising. The sad thing is its a vicious circle. The Tories will be vilified for making these cuts, so when Labour get back in they'll pander to their base and restore as many of the jobs as they can in their heartland, and the region will never learn to stand without the crutch of public sector jobs.