The Government is being urged to deliver on its promise to 'level up' the county amid warnings the pandemic has widened the divide between north and south.

A think-tank has warned that regional inequality is on the increase and unemployment could reach levels not seen since 1994, as the Covid-19 crisis continues to trigger widespread job cuts.

An IPPR report said a good life is becoming 'increasingly unattainable' in many northern regions, with inequalities deepened following austerity cuts.

The 'State of the North' report said economic resilience had been 'eroded' and that areas such as Cumbria were less-equipped to deal with economic shock.

Sarah Longlands, the director of the IPPR North think-tank, which published the report, said: "The government was elected on a promise to 'level up' places like the North.

"But one year on, they don't have a plan to reduce inequalities between and within regions in England and the inadequate, centrally controlled, competitive 'levelling up' fund announced in the spending review simply won't cut it.

"Our regional divides are severe and growing, we face a climate emergency, and Brexit is just around the corner, so a recovery from Covid-19 that simply restores the status-quo - which has failed so many Northerners - would be unacceptable.

"We need to challenge old, reductive assumptions about our economy because they’ve failed to create the conditions for a good life for everyone in the North.

The Government said its £4bn 'levelling up' fund will 'support the fabric of every life' including high streets and train stations and is investing £100bn on national infrastructure.

A spokeswoman for HM Treasury said: "Recovering from coronavirus is the biggest challenge the UK has faced in living memory and we can’t shy away from the fact our national recovery will be difficult, but we are totally committed to levelling up opportunities across the whole of the UK as we build back better."