Radiology Report Generation (RRG) automates the creation of radiology reports from medical imaging, enhancing the efficiency of the reporting process. Longitudinal Radiology Report Generation (LRRG) extends RRG by incorporating the ability to compare current and prior exams, facilitating the tracking of temporal changes in clinical findings. Existing LRRG approaches only extract features from prior and current images using a visual pre-trained encoder, which are then concatenated to generate the final report. However, these methods struggle to effectively capture both spatial and temporal correlations during the feature extraction process. Consequently, the extracted features inadequately capture the information of difference across exams and thus underrepresent the expected progressions, leading to sub-optimal performance in LRRG. To address this, we develop a novel dynamic difference-aware temporal residual network (DDaTR). In DDaTR, we introduce two modules at each stage of the visual encoder to capture multi-level spatial correlations. The Dynamic Feature Alignment Module (DFAM) is designed to align prior features across modalities for the integrity of prior clinical information. Prompted by the enriched prior features, the dynamic difference-aware module (DDAM) captures favorable difference information by identifying relationships across exams. Furthermore, our DDaTR employs the dynamic residual network to unidirectionally transmit longitudinal information, effectively modelling temporal correlations. Extensive experiments demonstrated superior performance over existing methods on three benchmarks, proving its efficacy in both RRG and LRRG tasks.