DECONSTRUCTING THE NORTH SOUTH DIVIDE AND THE FRAGILITY OF REGIONAL PRODUCTIVITY DYNAMICS IN THE POST BREXIT UNITED KINGDOM
Keywords:
Economic Divergence, Industrial Policy, Productivity Puzzle, Regional Development, United KingdomAbstract
This research investigates the structural fragmentation of the United Kingdom’s economic landscape, specifically evaluating the efficacy of the "Levelling Up" framework in addressing entrenched regional disparities. While the UK remains a global financial powerhouse, it is simultaneously characterized by a persistent "productivity puzzle" and one of the highest levels of regional inequality among OECD nations. Utilizing a multi-dimensional analysis of Gross Value Added (GVA) and spatial economic data, this article explores how the transition to a post-Brexit regulatory environment and the pursuit of a "Net Zero" industrial strategy have influenced regional growth trajectories. The findings suggest that existing top-down interventions have struggled to counteract the historical "London-centric" economic gravitation, further complicated by labor market frictions and underinvestment in sub-national infrastructure. This study argues that a fundamental recalibration of fiscal devolution and localized industrial policy is essential to bridge the productivity gap. By analyzing the tensions between national growth objectives and regional equity, this research contributes to the broader discourse on developmental trajectories within advanced neoliberal economies facing deindustrialization and political realignment.
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