England north-south divide set to grow with smaller towns worst hit

Biggest English cities expected to benefit as EY urges policies to address regional imbalances

The economic fortunes of Britain's smaller towns are set to fall further behind those of the biggest cities over the next three years, according to a report urging radical steps to tackle regional divisions.

Economic imbalances between the north and south of England are expected to widen until 2023 unless greater action is taken, forecasts from the accountancy firm EY show. Small towns across the north-east, Yorkshire and the West Midlands are expected to be worst hit by the widening gap.