Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what analysis he has undertaken on the reasons for variations in regional productivity; and what steps he is taking to reduce those variations.

Office for National Statistics data indicates that both London and the South East had productivity levels above the UK average in 2023 (the most up-to-date available data). All other regions had productivity levels lower than the UK average, with the lowest levels in Wales (15.1% lower than average) and West Midlands (14.8% lower than average).

Differences in productivity reflects a number of factors, including differences in historical infrastructure and capital investment and the sectoral composition of a region's economy.

The Government is committed to supporting regional growth: fundamentally rewiring the way our country works, transferring greater powers, funding and accountability to the local leaders who know what it takes to drive growth in their areas. In support of this, the government is investing in the infrastructure needed to support our city regions and growth corridors to grow, including an up to £45bn commitment to Northern Powerhouse Rail. The Government is maintaining momentum on our broader Northern and Oxford-Cambridge Growth Strategies, including a new £150m scale-up fund aimed at the fastest growing businesses in the North of England, delivered by the British Business Bank.