England has the worst regional inequality in the developed world, reports shows Researchers have called for more English devolution

The centralisation of power has led to England having the worst regional inequalities in the developed world, according to a report that calls for more power to be devolved from Whitehall.

With Boris Johnson promising to “level up” the UK after his stunning election victory in former Labour heartlands in the North and Midlands, the IPPR North think-tank has called on the Prime Minister to lead Parliament in a major devolution programme.

But economic divides are also failing workers in London, according to the think-tank, with people in the capital facing the highest rates of income inequality in the country as well as the highest rates of poverty.

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Luke Raikes, senior research fellow at IPPR North, said: “For too long, Westminster has hoarded power and held back prosperity in all of England’s regions, including London.

”Levelling up should mean opening the door for all of England to benefit from devolution, while also letting areas that have devolution take on more.“

The report compares England to federal countries including Germany, which spends twice as much in supporting regional and local economies as a percentage of GDP.

Power and resources must be put into towns, cities and regions across England, the report says, adding that the government must open the door to devolution across England, while letting Greater Manchester, the West Midlands and London take on more power.

‘More clout’

The report says: “The north of England’s economy is larger than the economies of most EU countries and it has a significant inheritance of economic assets – from its thriving cities and towns, to its natural assets, ports and windfarms off its coasts.

“Already, the North is showing what it can do with limited powers that have been passed down to metro mayors and through devolution deals. But the North will need more clout, more funding and more fiscal autonomy to reach its full potential.”

Mr Raikes said: ”This Parliament must be the Devolution Parliament. It is time to overturn the centralisation that’s let towns, cities and regions fall into decline. The government must give places the power and resources they need, to adapt to the decades of change that lie ahead.“