by business editor Trevor Sturgess

The prosperity gap between the south east and the north has widened over the past four years and is set to grow further, according to PricewaterhouseCoopers (PwC).

PwC's latest UK Economic Outlook reports that households across the UK face financial uncertainty and stress but those in the south east have fared better since the recession began in 2007.

Nationally, there has been an 8% rise in unemployment, 9.4% fall in house prices, public sector job cuts, and weak – if any – wage growth.

Rising unemployment and economic inactivity rates, marked falls in house prices and significant increases in personal insolvencies have all contributed to these results.

The north east and Wales have suffered the greatest increases in household financial stress, followed by the West Midlands.

By contrast, the south east, the east and particularly London have suffered less since the onset of recession.

PwC says this echoes the long term trend in UK regional development of a widening North-South divide.

PwC chief economist John Hawksworth (pictured) said: "Closing the North-South divide is more difficult than ever for government.

"Money is tight and the scope for significant transfers to more highly stressed regions is therefore limited.

"Businesses selling to households need to consider how their strategies can be tailored to these regional differences in financial stress, which look set to persist for some time to come."

He forecast that with modest growth of 1% expected in 2012, there would be no early end to financial pressures on households, with PwC's regional growth estimates suggesting "some further widening of the North-South divide next year".