The five combined groups of local authorities in the North of England should speak with a single voice when lobbying Whitehall for greater economic clout, an influential think tank has recommended.

An Institute for Public Policy Research report released today advises the leaders of the five combined authorities, which will all be operational by 2015, and comprise Manchester, Liverpool, the North East, South Yorkshire and West Yorkshire, to collaborate in order to secure a greater share of economic development funding.

Entitled ‘Rebalancing the books: How to make the 2015 spending review work for all of Britain', the paper urges the need of a ‘Boris of the North' to publicly make the case for increased powers and control over local investments.

It recommends that the Treasury should agree ‘earnback deals' under which local authorities would be rewarded for their efforts to get unemployed people into work with a share of welfare savings.

Among other measures aimed at boosting northern economies and reducing unemployment, the authors call for ministers to identify a Crossrail style top infrastructure programme for the north.

They also suggested 10% of income tax take in combined authority areas should be earmarked to those local authorities faced with a corresponding reduction in central government grants and for reduced central government interference with setting council tax and  business rates.

Report co-author, Ed Cox, director of IPPR North, said: ‘Cities which have the greatest potential for growth also have the worst poverty and unemployment. 

‘An "earnback deal" would provide an even greater incentive to invest in employment scheme which will not only finance growth, but will also help relieve poverty.'

He added the next spending review in 2015 would provide an opportunity to reform how public spending is distributed across the country.