// BBC BUSINESS NEWS — FINANZA
Almost half of households do not see benefits of economic growth, report says
Almost half of people in Britain live in areas where economic growth does not translate into a better quality of life with a "stark" North-South divide in the spending power of households, a new report finds.
Researchers at consultancy PwC said every region in the north of England, Midlands and Wales had lower spending power than the country's average, with London and the South East comfortably above.
The findings come as Prime Minister Andy Burnham has pledged to tackle regional inequalities in a bid to boost living standards across the country.
But questions remain over the PM's plans, with surging government borrowing costs set to limit his room for manoeuvre at October's Budget.
The PwC report said the equivalent of 12.5 million households - 46% - lived in parts of the country where economic growth, often seen through increased business investment and job opportunities, was not leading to better living standards.
It said households in the north east of England had 6.6% less spending power than the national average, equivalent to £1,542 less a year. The North West was £1,493 less, while Yorkshire and the Humber were worst off with spending power down £1,917 comparatively.
Meanwhile, households in the South East were found to have spending power 9% above the national average, worth an additional £2,154 a year, followed by London.
Household spending power is seen as a good measure of whether economic growth is improving living standards.
PwC says it measures this by looking at income after taxes and housing costs, and takes into account the size and makeup of a household - which is aimed at giving a better idea of the money available to meet other expenses.
The UK has seen years of slow growth, although the economy expanded by 1.2% in the first six months of this year, according to official figures.