Profit warning

RISING levels of prosperity have transformed the lifestyle of Britons over the last three decades. Much of that progress is now at risk, however, so there is little cause for celebration in the claim that the gap between the rich and the poor in Yorkshire is the smallest in England. There are still pockets of deep deprivation here, which could be worsened by the coalition’s spending cuts.

It is also worrying that the pay of those at the top has risen faster than for those at the bottom, according to the Institute for Public Policy Research North. With inflation climbing steeply, and certain key costs such as household energy and petrol increasing at an even faster rate, it is important that the needs of the poorest workers are not forgotten.

The affluence divide in Leeds, which IPPR North found was the deepest in England, underlines problems across the region. A great city which saw substantial economic growth until 2008, the incidences of homelessness, boarded-up houses and industrial buildings left derelict are signs that, even during Labour’s boom years, too many people missed out.

That, of course, is a familiar situation in South Yorkshire. Neglected throughout the Conservative 1980s, the legacy of that time is apparent in the way public sector jobs have been used to prop up the local economy. With the size of the state set to shrink, towns such as Rotherham, Doncaster and Barnsley are at risk of being left behind once again.

Everyone has a part to play in the solution. Company chief executives must overhaul a system that in some cases has seen them earn 20 or 30 times more than the lowest paid worker, Government must not pull investment projects in the North and the new local enterprise partnerships must stand-up vocally for struggling communities, otherwise our future will be as a divided nation.