• One of UK's leading wealth managers, with offices and clients across the country, finds in new analysis that UK is 'the most geographically unequal economy in developed world'
• Rathbones calls for decisive action in the Budget to support growth and investment in all regions and warns that high energy costs and poor transport links deter business investment and limit opportunity

LONDON, Nov. 7, 2025 -- Critical under-investment in regions outside of the South-East is a serious drag on the UK's economic prospects and needs urgent address, according to Rathbones, one of the UK's leading wealth management groups.

Publishing its key recommendations for the Chancellor ahead of the Autumn Budget, Rathbones calls on the government to reverse years of neglect in regional funding and unleash the potential of the UK economy as a whole. It warns that the UK is, by several measures, the most geographically unequal economy in the developed world.

The firm's analysis, "Building Prosperity: Five Recommendations for Growth and Investment in the UK" Rathbones highlights how regional inequalities, for instance in infrastructure and energy costs, undermine the UK's economic potential. It cites spending per person on transport, which is 80% higher in London than in the next highest region, Scotland. This means that in each of the nine largest cities outside London, only 40% of people can reach the city centre in 30 minutes by public transport, compared with 67% in comparable European cities.

The Building Prosperity report is based on extensive analysis by Rathbones' economists and investment research team, as well as insights from clients across the country. It identifies five critical areas for policy action: pensions, business taxation, regional/public investment, wealth taxation, and property/housing market reform. The report argues that only a bold, investment-led approach can break the cycle of weak growth and rising tax pressures that have hampered the UK economy for years.

Key findings on the impact of regional imbalance include:

• Energy costs and competitiveness: UK industrial electricity prices are almost 50% higher than the median among developed economies, with prices four times higher than in the US and one-and-a-half times the European average. This is particularly damaging for energy-intensive sectors outside of London such as manufacturing and data centres, which are vital for the digital economy.
• Infrastructure delays and missed opportunities: The cancellation of the northern leg of HS2 and delays to Northern Powerhouse Rail risk hampering growth in the North. Rathbones calls for renewed commitment to major transport projects outside London and further devolution of decision-making to cities and regions.
• Planning system bottlenecks: The report highlights how the UK's planning system creates delays and costs, with less than a quarter of major planning decisions made within the statutory 13-week timeline. Rathbones urges the government to pass the Planning and Infrastructure Bill without dilution, to speed up approval and delivery of major projects and ensure adequate funding for the planning system.

Camilla Stowell, CEO Wealth at Rathbones, said: "Our clients are at the heart of building and managing the real-world activity that drives the UK economy. But too many regions are being left behind by underinvestment in transport, energy, and public services. If the government is serious about driving growth, it must prioritise regional investment and infrastructure reform. The evidence is clear: targeted investment can unlock opportunity, create jobs, and support businesses across the country."

Oliver Jones, Head of Asset Allocation at Rathbones and lead author of the analysis, added: "Regional investment is not just about fairness, it's about unlocking the UK's economic potential. Our research shows that holistic infrastructure spending and energy reform can drive growth, create jobs, and support businesses across the country. The government must act now to ensure every region can contribute to and benefit from national prosperity."

In its analysis, Building Prosperity, Rathbones also calls on the government to:

1. Boost investment through the pension system
2. Reform business taxation
3. Resist further taxes on wealth
4. Reinvigorate the housing market

Notes to Editors

See the full report here.

Please contact press@rathbones.com

About Rathbones rathbones.com

Rathbones Group Plc (Rathbones) is one of the UK's leading providers of investment and wealth management services for private clients (individuals and families), charities, trustees, and professional partners. Rathbones' purpose is to help more people invest their money well, so they can live well.

With roots dating back to 1742, the company has been trusted for generations to manage, preserve and grow its clients' wealth. Services include discretionary investment management, fund management, tax planning, trust and company management, financial advice and banking services. Rathbones also supports financial advisers deliver positive outcomes for their clients.

Rathbones manages £113.0 billion* of client assets, including £16.3 billion through its asset management arm, Rathbones Asset Management Limited. A FTSE 250 company, Rathbones employs over 3,350 professionals, including around 750 investment professionals in over 20 offices across the UK and the Channel Islands, offering clients high-quality, personalised wealth management services.

*As of September 30, 2025