DEVOLVING more power to the regions is a “golden opportunity” to boost living standards, according to a leading think tank.

Ed Cox, director of IPPR North, said the business case for devolution was unequivocal.

Mr Cox was speaking ahead of a speech by CBI director general John Cridland in which he is expected to say further powers for the regions present a real opportunity, but such changes should not be rushed.

The Government has been forced to look again at the devolution issue following the Scottish National Party’s narrow defeat in the Scottish independence referendum and frustration over how many regions are lagging behind London and the South-East.

According to the Office for National Statistics (ONS) over the period 2010 to 2012 the North-East had the lowest median household wealth of any region in England, Scotland and Wales at £142,700 – less than half the total in the South-East (£309,700)

This was a proportional fall of 10 per cent from 2006. In contrast households in London saw an increase of 31 per cent in median total wealth over the six years.

The ONS took into account property values, physical wealth, such as what a house contains, financial wealth – what people hold in the bank and investments – and pension wealth.

The picture is even more distorted when it is weighted according to the number of people living in a particular region, bloating London and the South-East.

Mr Cox said using the full potential of cities and regions would bring down the deficit, rebalance the economy and raise living standards.

He said: “As the economy recovers nurturing Northern prosperity will create national prosperity. “Devolution in the next Parliament is a golden opportunity for that to happen.”

In his speech Mr Cridland will say: “Let’s make sure that any devolved powers respect the integrity of our single, internal market, based on a single, United Kingdom.

“Let’s make sure that they are rooted in economic evidence, not driven by political expediency.

“And let’s make sure that they complement our efforts to create growth and jobs across the UK.

“If we do this right - we can make sure that people in all regions and nations see their fair share of the UK’s prosperity.”