Why it's great up north

by SEAN POULTER, Daily Mail

Millions of Britons have traditionally headed South in search of a better standard of living. But research suggests those with aspirations of wealth could be better off staying put.

Those who opt out of the Southern rat race and move North could be even bigger winners.

A study of the true spending power of salaries around the country concludes that those in the North of England enjoy a higher standard of living and a better quality of life.

Research looking at average salaries in relation to the local cost of living suggests Cheshire is the best place to live.

And the parliamentary constituency of Tatton, where David and Victoria Beckham have a home, comes out best of all.

The neighbouring constituencies of Macclesfield, Altrincham and Sale West and Cheadle all feature high in the spending power league.

The study, by Barclays Bank, highlights the fact that, while the biggest salaries are available in the South, the high cost of living there means the money does not go as far as it does elsewhere.

It measured average local incomes against the regional cost of living - which includes everything from mortgage repayments to the cost of a pint of beer or a bus ticket.

London, the most expensive region with a weekly expenditure of £495.80, was taken as the benchmark of one, with other regions calculated as a percentage of this.

Thus, the cost of living in the North-East - at £348.60 a week - is only 70.3 per cent of that in London, represented for the purpose of calculations as 0.703.

Average local gross salaries were then divided by the cost of living figure in each area to show how much the income would buy in London.

The average individual salary in Tatton of £29,303 is therefore boosted to £41,506 after the calculations.

Just three London parliamentary constituencies make the top 20 in terms of real wealth and spending power, while the only other location in the South-East is Beaconsfield, Buckinghamshire.

Because London is taken as the base of one, salaries in capital constituencies are considered to buy exactly that amount in real terms.

The research highlights the fact that many families in the supposedly wealthy South are struggling to make ends meet, with 13 London boroughs featuring in the bottom 20 in terms of residents' spending power.

Barclays' spokesman Gordon Rankin said lower housing costs were a major factor in giving Northerners a higher disposable income. He added: "There is a small, but noticeable, group of people who are realising the equity in their properties in the South-East and moving to the cheaper West and North and buying property outright.

"Because they do not have to worry about mortgage payments, they are therefore able to survive on smaller incomes."