The Government’s chosen path of devolution could make regional inequality in England worse, a think-tank has warned.

The latest report by Localis said ministers risk ‘deepening regional imbalances’ if they pursued a ‘uniform Greater Manchester style metro-mayoral model’ across the country.

Localis senior researcher, Sandy Forsyth, said: ‘The continued prioritisation of more mature, “established” authorities, the traditional deal-first approach, and top-down control from Whitehall may stifle genuine regional autonomy and reaffirm existing asymmetries in regional development.

‘However, at this crucial moment in time strategic authorities can, and should, be provided with the means to develop strong foundations that can respond to their own, unique place contexts.’

The report said devolution models should reflect ‘individual local economic contexts’ in England’s regions, pointing out ‘not all have a single dominant urban core’.

Instead, growth strategies could be based around town networks, transport links and other local economic relationships.

Further clarity was required on which powers are held ‘regionally and strategically’ by mayors or ‘remain closer to neighbourhoods’ in councils, and on scrutiny arrangements, with a ‘minimum national standard’ recommended.

Localis said early investment was required in analysis and policy capacity, plus financial and risk management.

Ahead of chancellor Rachel Reeves’ publication of a fiscal devolution ‘roadmap’ in the Autumn, the report argues for radicalism, such as the distribution of income tax or VAT.

Whatever is on offer, the report argues ‘uniformity’ is crucial so all regions can reap the benefits.

The report also calls for a shift from incentives based on ‘agglomeration policies’ to growth policies that emphasise network-building.

Adele Gritten, chief executive of report sponsors Local Partnerships, said: ‘This report makes clear that a more place-based approach is needed, one that reflects local areas rather than relying on a single model for all regions.

‘With the right foundations and support, combined authorities are well placed to turn ambition into real outcomes for their communities and economies.’