City councils need to be given more powers to determine how money from central government is spent locally, according to a new government-backed report.

The State of the English Cities report, which was published this week, calls for the country's cities to be given more financial powers and influence, in line with their European and American neighbours. The report said government departments should work together to recognise the importance of cities, which should in turn be given more influence about how public funds are spent in their area.