North worst affected by recession

All twenty of the areas recording the biggest falls in activity between 2008 and 2011 are in the North.

In contrast, seven of the ten areas with the smallest declines in activity are in the South.

Cornwall and Isles of Scilly in the South West recorded the lowest decline in economic activity with the smallest rise in the claimant count rate - an increase of 0.7% from 0.9% to 1.6% - over the last three years.

Gwynedd in Wales saw both the smallest drop in economic activity outside southern England and the second lowest fall across the UK (claimant count rate rise of 0.8%).

In contrast, Hull and Belfast were among the areas that have seen the biggest falls in economic activity since 2008.

Halifax said areas worst affected by the recession have higher dependence on production industries.

On average, production based industries such as manufacturing accounted for almost a quarter of economic activity (23%) in the ten local areas with the biggest contractions in activity since 2008; almost double its 14% share in the ten areas that experienced the lowest falls in activity.

In Kingston upon Hull - the local area that saw the biggest contraction in economic activity between 2008 and 2011 - production based industries account for 28% of total economic activity.

This is more than twice their share in Cornwall and Isles of Scilly (12%) - the area with the smallest fall in economic activity over the period.

Suren Thiru, economist at Halifax, said: “The biggest increases in economic activity over the decade to 2008 were primarily concentrated in areas outside southern England.

“However, since 2008, although all areas of the UK have been adversely affected by the economic downturn, those living in the north of the country have generally been hit hardest.

“The north is more dependent on production based industries, such as manufacturing which have been particularly badly hit during the downturn.

"Looking forward, the current strain on economic activity in many of the locations worsted affected by the recession may ease somewhat over the next few years as the UK economy rebalances towards a greater reliance on investment and exports."