Yet again, the budget pushes the North a little further from the South

It's two nation Britain.

With growth forecasts halved to 0.6 per cent this year, and unemployment rising again in the north of England, this needed to be a budget for growth across the UK. Instead, the headline measures will do more to further inflate house prices and childcare costs in London and very little to boost regional economic opportunities. Meanwhile, further public spending cuts – not least in pay and benefits - will have a continued deflationary impact on many Northern towns and cities.

The budget has come on a day when unemployment figures show the North-South divide widening further – up by 10,000 people across the north of England in the past quarter compared with a 17,000 fall in London.

Measures such as the increase in the income tax threshold and the National Insurance allowance for small businesses will be welcomed by many but won’t have the effect of rebalancing the economy – rather, they will tend to benefit those areas where wages are higher and the business base is broader.

More significantly, measures to increase new house building are to be welcomed but there is a significant risk that making it easier for borrowers will simply prop up prices – indeed, inflate prices – rather than getting additional homes built. It is not clear that Help to Buy will generate additional new housing starts, beyond what would have been undertaken anyway (which will certainly not be the case for mortgage subsidies that are not linked to new-build) and the 15,000 new homes promised in the budget go nowhere near most estimates which suggest we need to build an extra 250,000 new homes a year to meet rising demand. Similarly, childcare changes will soon be wiped out as providers inflate costs with little additional provision.

Of those measures that will stimulate growth it is too little too late. It is encouraging news that the Chancellor has broadly endorsed the Heseltine report but with government sources suggesting that resources going into the "single pot" will be in the “lower billions” rather than the £49 billion Heseltine recommended – and even then not until April 2015 – this will hardly be a short-term stimulus.

The £3bn boost in infrastructure spending is something that IPPR North and many others have been calling for many months but will do little to help us catch the levels of capital investment spent in other nations and once again won’t land until 2015/16. Furthermore, we cannot hope this will boost regional growth when we currently plan to spend £2,595 per person on transport in London compared to just £115 per person in the north. Transport spending must be devolved more fairly to have a real impact.

With much evidence pointing towards the critical role regional economic development is playing in stimulating national economies across the developed world, this budget – however populist – will do little to restore the economic health of the nation and will ultimately be regarded as a missed opportunity.

But perhaps the bigger tragedy than this missed opportunity is the fact that regional prosperity hangs so much on central government decision-making at all. With greater fiscal decentralisation economic growth could be better tailored to the particular needs of local and regional economies and less dependent upon the big levers so clumsily wielded by chancellor after chancellor. Such reform is long overdue.  

Photograph: Getty Images

Ed Cox is Director at IPPR North. He tweets @edcox_ippr.

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This is no time for a coup against a successful Labour leader

Don't blame Jeremy Corbyn for the Labour Party's crisis.

"The people who are sovereign in our party are the members," said John McDonnell this morning. As the coup against Jeremy Corbyn gains pace, the Shadow Chancellor has been talking a lot of sense. "It is time for people to come together to work in the interest of the country," he told Peston on Sunday, while emphasising that people will quickly lose trust in politics altogether if this internal squabbling continues. 

The Tory party is in complete disarray. Just days ago, the first Tory leader in 23 years to win a majority for his party was forced to resign from Government after just over a year in charge. We have some form of caretaker Government. Those who led the Brexit campaign now have no idea what to do. 

It is disappointing that a handful of Labour parliamentarians have decided to join in with the disintegration of British politics.

The Labour Party had the opportunity to keep its head while all about it lost theirs. It could have positioned itself as a credible alternative to a broken Government and a Tory party in chaos. Instead we have been left with a pathetic attempt to overturn the democratic will of the membership. 

But this has been coming for some time. In my opinion it has very little to do with the ramifications of the referendum result. Jeremy Corbyn was asked to do two things throughout the campaign: first, get Labour voters to side with Remain, and second, get young people to do the same.

Nearly seven in ten Labour supporters backed Remain. Young voters supported Remain by a 4:1 margin. This is about much more than an allegedly half-hearted referendum performance.

The Parliamentary Labour Party has failed to come to terms with Jeremy Corbyn’s emphatic victory. In September of last year he was elected with 59.5 per cent of the vote, some 170,000 ahead of his closest rival. It is a fact worth repeating. If another Labour leadership election were to be called I would expect Jeremy Corbyn to win by a similar margin.

In the recent local elections Jeremy managed to increase Labour’s share of the national vote on the 2015 general election. They said he would lose every by-election. He has won them emphatically. Time and time again Jeremy has exceeded expectation while also having to deal with an embittered wing within his own party.

This is no time for a leadership coup. I am dumbfounded by the attempt to remove Jeremy. The only thing that will come out of this attempted coup is another leadership election that Jeremy will win. Those opposed to him will then find themselves back at square one. Such moves only hurt Labour’s electoral chances. Labour could be offering an ambitious plan to the country concerning our current relationship with Europe, if opponents of Jeremy Corbyn hadn't decided to drop a nuke on the party.

This is a crisis Jeremy should take no responsibility for. The "bitterites" will try and they will fail. Corbyn may face a crisis of confidence. But it's the handful of rebel Labour MPs that have forced the party into a crisis of existence.

Liam Young is a commentator for the IndependentNew Statesman, Mirror and others.