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The government needs to recognise that there are two economies in the UK - ...
The government needs to recognise that there are two economies in the UK -

one for London and the south east and one for the rest of the country,

Labour MP Andrew Bennett told BBC Radio Four's Today programme this morning.

Mr Bennett, chair of the commons committee on local government and the

regions, said new mechanisms need to be found for reducing the north-south


'We've got to find ways of bringing those regional economies up to the same

level as London', he said.

'We've got to look at all the government's programmes and look at the

regional dimension in them. So in terms of transport, yes there are

congestion problems around London, but more important is getting basic, good

transport into the English regions'.

Decisions on interest rates, he said, benefit London but not the rest of the


'You've got to make sure that those people who lose out as a result of that

get some compensation... and that's not what we're getting at the moment'.

* The report is available here.

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