THE North-South divide is likely to widen as the drivers of economic growth are concentrated in the South, according to a survey.

The Institute for Public Policy Research (IPPR) North believes the findings of its analysis is exacerbated by new economic powers being devolved to London and Scotland.

The latest research by IPPR North shows that the region is falling behind in terms of skills, business start-ups, and investment in transport, science and technology.

Last year, the percentage of the working age population with no qualifications was 11.1 per cent in England, compared with 13 per cent in the North- East.

The North-East has the fewest number of business start-ups per 1,000 of the population, only 5.7, compared to London, which has the highest at 11.

And investment in transport infrastructure is heavily skewed towards London and the South-East. Based on recent Treasury figures, spending on transport in London has now risen to £802 per head, compared with £248 per head in the North-East.

In 2009-10, investment in science and technology was nearly double in London that in the North-East.

The research has been prepared to coincide with the launch of a new commission, which aims to help the region forge its own future.

The Northern Economic Futures Commission brings together key figures from the business world to set out a tenyear strategy for economic growth.

Commission chairman Geoff Muirhead said: “Northern prosperity is national prosperity, although this debate is so often framed in terms of North-South divide.

“With London, Scotland and the other devolved nations increasingly free to develop their own plans with their own powers, it is time for the North to set out its stall for what it needs to remain competitive in the global economy.”

Ed Cox, director of IPPR North and deputy chairman of the commission, said: “Making sure that the UK economy is firing on all cylinders is vital for the whole country so it is in the interests of everyone to make sure the North of England prospers.

“In the past, the North has looked to London to solve its economic problems but this commission is designed to allow the North to forge its own economic future.”

The 16-strong commission, which incorporates the North- West and Yorkshire and Humber regions, includes Rhiannon Bearne of North-East training firm The Business and Enterprise Group.