Local government is over-centralised, inefficient and under-resourced, a new report has said.

The study from the think-tanks Centre for Cities and Resolution Foundation argued local government struggles to deliver positive change because councils and combined authorities do not have the necessary powers and funding to effectively manage their local economies.

Between 2015 and 2019, British local government spending per person only increased by 2% while spending increased by 21% in France, 23% in Spain, and 25% in Germany.

Centre for Cities chief executive Andrew Carter said: ‘Britain's unusual level of centralisation is a weakness - not a strength.

'It means subnational government is incapable of delivering the changes that they and the national economy require.

‘Making small gradual improvements to fix our broken system of local government – as Whitehall has been doing in recent years – is not going to be enough to help us escape our stagnant economy by 2030.

‘Big challenges require big responses and central Government must now deliver reforms that devolve fiscal powers and give local authorities the resources to effectively level up their areas and encourage growth across the UK.'