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A fifth of Londoners believe they would be better off if the capital became independent from the rest of the UK, a study reveals today.

The research, to be fully published later this week, found 21 per cent thought they would benefit if London broke away.

It comes as the Government today sets out plans to invest billions in the English regions, to boost housing and transport. Labour leader Ed Miliband also announced his “new deal for England”, which would see councils taking powers from national government.

The proposals, along with the study, sharpen the debate over England’s future ahead of September’s referendum on Scottish independence.

Research group Britain Thinks surveyed 1,000 Londoners about the capital’s future. Some 13 per cent generally agreed they would be better off if London went independent. A further eight per cent strongly agreed.

The study also revealed a large Labour lead in London, suggesting the party would receive 37 per cent of the vote in a general election, compared with the Tories on 21 per cent.