From national averages to local realities: inequality in our communities

Economic decline, Conservative austerity and misguided government policy have all been blamed for worsening inequality in the UK, however, this fails to take a rounded view of inequality and leads to debate over economic solutions that neglect local challenges. By defining inequality solely as an economic problem, we enter further debate about inequality as an economic indicator. Critics can readily underplay the impact of inequality in our society by pointing out that relative poverty has remained constant. Inequality must be viewed through the lenses of income, wealth, health and education, all of which are rooted our local communities.

Unaffordable housing, exorbitant early-years education, a lack of GP appointments and job losses reflect a perception of overall decline in the local area. This affects local people and the opportunities they are given. Two-thirds of working-age adults in poverty live in a household where someone works, this undermines the notion that “work pays” and is just cause for the anger felt by so many. Those same communities are experiencing UK firms offshoring to cheaper labour markets and criminal gangs operating with impunity. These are local issues for local people. This perception that life is getting worse and not better has been exploited by populists across Europe and the Americas. All too often, we link this phenomenon to polarisation and a changing media landscape, this isn’t the full story. Populists in the UK are campaigning on those local issues: “Make Work Pay”, “Revitalise British Manufacturing” and “Make Law-Abiding Citizens Feel Safe”. The electorate don’t need to support the extreme policies of these parties to vote for them, they simply need to see a party that is representing solutions to their local problems.

Measuring inequality in our society is complex and often reliant on big data that comes with a subjective interpretation. Within Europe, the UK has amongst the highest levels of income equality with the top 1% estimated to hold 13.4% of the income share. At the same time, the tax and benefit system distributes income and can demonstrate that disposable income equality has remained consistent since the 1980s. With more food banks than ever before and real anger about the cost of living, national statistics to frame answers to inequality risk alienating and provoking already angry communities.

Tolerating inequality contradicts how we embrace Liberty as a core value. We cannot have the freedom to live our lives as we choose where socioeconomic challenges bar swathes of society from opportunities to make the most of themselves. Health inequality disproportionately affects UK communities through demographics and localised health risks (e.g. poor air quality in cities or obesity in deprived areas). In public-sector employment, we prioritise privately educated students for jobs as doctors, lawyers and military officers, neglecting or discouraging those from state schools. For millions of British people, outcomes and opportunities are set at birth – it can be no surprise that trust in our establishment is degrading. Inefficiency in our establishments cannot solely be to blame for widening distrust, a lack of representation within our communities may be the root cause.

What can we do about it?

Inequality is a major concern within our communities. We might not characterise complaints, political disengagement or polarised views through inequality lenses, but we should. We must accept that inequality is not just an economic issue about finances. Instead, it is a local issue that affects the opportunities of everyone in society that results in financial, health and educational outcomes.

A healthier, fairer society that presents opportunities within our local communities would go a long way to resolving how the electorate perceive the inequalities that they experience. Framing inequality through economics at a national level is unlikely to cut through to the electorate. To address this, we must focus on clear, actionable policies that address the vision and values of the Liberal Democrats. These must be locally relevant and address the inequalities that our communities are facing.

* Tom Walker is an active party member from Chippenham. His career has been spent as a leader in the British Army with an education in both Economics and Business.

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2 Comments

  • @ Tom Walker, “Economic decline, Conservative austerity and misguided government policy have all been blamed for worsening inequality in the UK”.

    Tom, I’m sorry, but as someone who joined the Liberal Party as long ago as 1961, I have to say it wasn’t just Conservative austerity between 2010 and 2015, although I welcome your appeal to deal with the problems of inequality.

  • Kira Collins 8th Jun '26 - 11:00am

    “ Tolerating inequality contradicts how we embrace Liberty as a core value”

    As a Liberal, I do not believe that we should be seeking a society where everyone receives the same take home pay irrespective of the job they do or how hard they work. Indeed, if we believe that ‘work should pay’, it is essential that those who work for a living should have more take home pay than they could have received on benefits had they chosen not to work. Add to that, as Liberals, we believe in the capitalist model so we must accept that those willing to take risks by investing or starting a business should see the possibility of earning more take home income than if they hadn’t bothered. So, at the least, we should be willing to ‘tolerate inequality’.

    I would say that what we are against is people being unable to afford the basics in life and people having equality of opportunity. Beyond that, inequality is not ‘intolerable’.

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