London's share of the UK's economic output is now at its highest in history (21.9%). (Per ONS). This even exceeds its 1911 peak when London was the world's major city, a major manufacturing city, the world's biggest port and the administrative centre of the world's greatest ever Empire.

London and the SE / E regions represented 45.2 per cent of theUK economy in 2011 and the rest of England & Wales 44.3%. This means 22.7M SE'ers were more productive than 33.4M from the rest of England & Wales.

Only two regions had gross value added per worker of more than the UK average - London with nearly 140% and the SE about 105%. The weakest regions were Wales (weakest), Northern Ireland and then Yorkshire. Londoners were 66.2% more productive than Welsh workers.

These are stark statistics, with the economy becoming more reliant on London even with the despair in the City and banking crisis. What can be done to make Northerners more productive? What might be the longer-term ramifications forthe UK if this imbalance is not addressed? Is the UK sustainable if the regions do not become more productive? Do the statistics show that capitalism works whereas socialism (reliance on the State for jobs) does not?

Given that capitalism has recently needed a rescue from itself, no.

Wrong question. It should be "What can be done to make the North more productive?"

The answer is very simple. Move the jobs from down south, up north (the jobs that is, not the Southerners they can stay there).

Trolling again eh Dally.

How do you move these jobs? Companies locate where they do for reasons. For instance, they need access to markets and a skilled / educated workforce. The only way to get them to move en masse would be heavy government subsidy - which would be counter-productive so far as the overall UK position is concerned and lead to further cuts in public services. The future of the welfare state absolutely and totally depends on the North and West of the UK becoming economically stronger and the South and East staying relatively strong. As someone is getting older I want the welfare state to exist in future!

Or ...

Create more jobs in the north.

We don't actually have full employment down here, you know.

I'd guess that London has more state employees than anywhere else in the UK.

In % terms?

Look at relative contributions of public v private sectors to regionalGDP.

What do you want?
The regions to go down the banking and finance route or London to take back the various regionalised civil service departments?

It worked in the 1970s and 80s - take a look at the Don and Dearne valleys in South Yorks to see a huge swathe of the countryside decimated by pit closures being redeveloped by EU funding for roads and underground infrastructure and then the businesses being encouraged by low or no business rates and subsidised rents or construction costs, they don't all stay when the subsidies stop but a good percentage of them have done, and they wouldn't be there at all if not for some imaginative thinking and a hand-in-pocket attitude by the tail end of the last Tory government (after they had caused the armegeddon in the first place).