THE region's counties could lose out to the cities in the drive for devolution, a think tank has warned.

Devolution to English counties could drive economic growth across the country, but these areas risk being cut off from the benefits of devolution deals, according to a new report by IPPR.

Counties represent 41 per cent of the English economy and are home to more active businesses than any other part of the country - but they could do even better with more devolved powers.

The report outlines how English counties can exploit their huge economic potential as the government assesses 38 devolution bids ahead of the Comprehensive Spending Review.

But the report expresses concern that Whitehall is prescribing a ‘one-size-fits-all’ model for devolving to cities and counties alike, with directly-elected mayors still being demanded even for county regions where they would make little sense.

To avoid counties being cut off from devolution, the research recommends that the Government accepts that county devolution requires a different approach to cities.

Ed Cox, director of IPPR North, said: “Counties need devolution every bit as much as the big cities and, with the right support and empowerment, there is a massive opportunity to unleash their economic potential.

“The danger otherwise is a one-size-fits-all approach to mayors means huge swathes of the country are cut off from the benefits of devolution, stymieing their potential to grow and reform public services.”