Labour Party analysis of Office for National Statistics data revealed the scale of wealth inequality, in what leader Jeremy Corbyn called “the sign of a sick economy”.
While Luke Raikes, Senior Research Fellow at IPPR North said: “Today’s figures are further evidence that our economy is broken.”
The Labour leader has called for economic reform to tackle wealth inequalities between different parts of the UK.
Mr Corbyn said: “The system is broken when it inflates the wealth of the richest, while failing to invest in our future.
“This inequality doesn’t just undermine our future prosperity, it’s linked to all sorts of social problems, including violent crime, worse health outcomes and reduced access to education. And we know that concentrations of wealth generate unaccountable power, corrupting our politics in the process.”
He vowed the policies Labour will announce at party conference, which begins on Saturday, will put “people before privilege”.
But Mr Rakes believes it was not an issue which could be fixed in Whitehall.
He said: “Outside of London, low public investment means regional economies like the North are held back, while London’s overheating economy drives up both house prices and inequalities.
“We cannot fix these problems from Whitehall. People in regions across the country need more power so that they can take the lead on their own affairs.
“The political parties must step up to prompt this change, devolve power and follow through on promises to invest in Northern people and infrastructure.”