Quote:
Originally Posted by Ignitionnet
London and the South East more than pay for themselves actually. They subsidise various other parts of the rest of the country according to the gross value add statistics. The North East especially is horrifically reliant on funding from London and the South East. This isn't actually a good thing!
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The moving of government departments out of London to areas of high unemployment was just a token gesture, very welcome but nowhere near enough to redress the balance.
It isn't just our taxes which end up in London, most large companies have their head office and consequently their bank accounts in the City so every time we pay for insurance, go to Tesco, book a flight etc. etc. all the money ends up going down a one way street to London. Once all the money arrives it needs an army of very well paid people to do with what has to be done, these people then spend their earnings in their locale to the benefit of everyone there, no wonder then that the Government has to redistribute some of the money back seeing as these same companies are paying the people who collect the money for them in other parts of the country a pittance by comparison.