Official figures on regional incomes in the UK are compiled on a nominal basis. This paper develops a contemporary measure of relative regional prices in the UK, which suggests that the impact on relative regional living standards is substantial. Interregional differences in real incomes are therefore considerably smaller than nominal ones. It is hoped this study will stimulate further research. Insofar as prices are systematically higher in wealthier regions, there are important policy ramifications and public policy focused on regional assistance and redistribution should take account of these.
- regional disparities
- spatial inequalities