Trade unions are calling for millions of pounds to be given to the regions to cut the UK's productivity gap.

The TUC will say that the regional development agencies should have their funding increased by 25 per cent in the comprehensive spending review.

The increase would equate to an extra £375 million a year in England, Scotland and Wales that could be used to boost productivity and manufacturing.

Backing the call is research by the TUC which concludes the UK has lower productivity and higher regional disparity than key EU rivals.

TUC general secretary John Monks claimed some areas of the UK were "half a world away" from the prosperous regions.

"More than just a North-South divide, Britain suffers from pockets of poverty. The solution is not to try and make every regional economy like those of south eastern England, nor is it to flood pockets of poverty with make-work schemes," he said.

"The solution is complex and involves the redistribution of resources and a genuine transfer of power."