New figures show 'unacceptably wide' regional differences in economic performance, according to the Government.

While incomes and exports have improved nationally over the last year, research and development investment in many areas, including Yorkshire and Humberside, has fallen.

Trade and Industry Secretary Stephen Byers is warning that the geographic gaps between the best and worst performing areas need to be closed to ensure economic stability.

He said: "We need to widen the winners' circle still further and ensure that economic prosperity brings real benefits and increasing prosperity in every part of the country."

The regions with the highest earnings for full-time workers over the past year were Merseyside and Northern Ireland (both up 9.6 per cent), the North East (9.3 per cent) and Wales (9.1 per cent).