THE Deputy Prime Minister will today (Friday, September 12) unveil a report proposing wide-ranging powers being handed to the English regions as the Scottish referendum prompts fresh calls in the North-East for devolution.

The report by the IPPR North think-tank suggests a new wave of "metro mayors" for city regions and giving local councils greater powers to vary taxes.

The ten-year plan identifies 40 different functions of government which need to be devolved and covers powers and budgets held in 13 different Whitehall departments.

Deputy Prime Minister Nick Clegg has backed the need for decentralisation and said that there would need to be a "rewiring" of the constitution following next week's Scottish referendum, after significant new powers were promised to Holyrood if there is a No vote.

The IPPR plan would lead to a new wave of combined authorities, like the recently formed North East Combined Authority.

Whitehall would also hand over powers on the economy, education and skills, the work programme, housing, transport, criminal justice, probation and the police.

IPPR North director Ed Cox said: "Whichever way Scotland votes next week, Edinburgh will get new powers and widen the gap with local leaders across England.

"England has waited patiently while Scotland, Wales and Northern Ireland have been given ever great devolution. Now is the time to redress the balance and devolve powers to English city-regions."

Mr Clegg said he welcomed the "incredibly useful" IPPR North report.

He said: "Shifting power away from Westminster to the cities and regions has long been a priority of mine."

In the North-East, fears that the reason will lose out whatever the outcome of the Scottish referendum have prompted a renewed focus on devolution.

Jeremy Middleton, North East LEP board member and investment company owner, said the region needed more economic powers to compete with Scotland, adding that there needed to be a "level playing field".

"London may even pick up financial services from a Yes vote, but it's our off shore oil and gas industries, our manufacturing industries which are exposed."

But Mr Middleton said the answer was not a regional assembly and not more politicians.

Instead, he said greater powers should be handed to existing bodies such as the North East Local Enterprise Partnership and the North East Combined Authority.

Graham Robb, chair of the North East Chairman of the Institute of Directors, agreed that the region needed more economic powers.

"If the Government does advance more devolution to Scotland we would like to see the City Deal turbocharged and more money handed to the region's two local enterprise partnerships."