North-South divide

This week, North Yorkshire-based ShirleyM posted an Any Answers question asking whether economic conditions in the South were as difficult as the conditions her clients were experiencing in the North East. Here are some of the situations she's noticed:

  • Contractor client told he can have a contract for 20% less than the previous one, or do without. He has also extended payment terms from 30 days to 60 days.
  • Secondly, a specialist consultant had US client terminate his contract because of the poor economic climate.
  • Big upsurge in the newly self employed as people made redundant look for ways to sustain their standard of living.
  • Potential clients are enquiring about the feasibility of buying and turning around struggling busineses for sale at knock down prices.

Feedback from other members confirms that the downturn is being felt elsewhere in the north - in much the same way that the 1980s and 1990s recessions emphasised the North-South divide.

Reporting from the South, Steve Holloway commented: "Retail and building is horrible and has been for three years really. Financial services seems pretty busy... banks in London are hiring temporary staff hand over fist to complete risk based projects arising from them banking crisis. Temporary staff recruitment is busy as are letting agents."

Jason Holden confirmed: "Our clients in London have seen this year pick up considerably, but outside the capital, anything retail based on the highstreet - forget it, it is still in reccession

Kendal based Ken Howard commented he "barely saw any signs of recession until earlier this year and now clients are beginning to see trade suffering and work harder to find...

These are anecdotal findings, but can you add to them? With input from the wider membership, it may be possible to collate the evidence gathered and combine it with more formal studies to compile an AccountingWEB analysis of the recessionary pattern and whether it is adding to the North-South divide.

Comments
zarathustra's picture

to please john and post some stuff on here

zarathustra | | Permalink

In conjunction with all the comments about season tickets, etc, what about removing all subsidies for work in the capital.

No London weighting for government or council employees etc.

Leading to a lack of people to empty the bins etc -  would certainly see people looking to move somewhere more congenial.

Couplethat with employees not being able to afford the rail tickets to commute in from the home counties, and we might well see employers wishing to move out of London.

All this could lead to a redistribution of work to other areas of the uk, and an averaging out of property values.

Paying people extra to work in the smoke is just making matters worse.

 

EDIT: and lets end the lunacy of HS2 whilst we are at it.

 

 

Old Greying Accountant's picture

Too right

Old Greying Acc... | | Permalink

zarathustra wrote:

 

EDIT: and lets end the lunacy of HS2 whilst we are at it.

 

 

 

What amazes me though, is that even with petrol prices, if you have more than one person to make a journey, the car is always the cheaper option - not to mention more convenient!

Example, Montrose to Aberdeen, return journey £16 off peak, £18.10 if it was a business commute (plus bus/taxi to station each end) a round trip of around 80 miles. For a family of 4 it would be £48 off peak, £54.30 peak time. My car would use no more than 2 gallons, around £12.50 and gets me door to door. At 45p/mile the cost is £36!

Incidently, it is nice to see someone use the term "the Smoke", was beginning to think I was the only one left using it.

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