The extent to which London and the South East prop up the British economy has been disclosed by data on the North-South divide.

It found that workers in the capital and the Home Counties generate a third of the nation's wealth, producing £375 billion a year in goods and services, out of the nation's total output of £1,155 billion. London alone produces £218 billion.

Londoners turn out £29,000 worth of goods and services each year per head, compared with £14,396 in Wales, the least-productive part of the country. Northern Ireland and the North East are not far ahead, each region generating £15,200 per head.

The study, part of the Regional Trends Survey compiled by the Office for National Statistics, uses a measure called “gross value-added” which combines the value of goods and services that workers produce, the money they earn and the tax they pay.

All regions outside London and the South East produce less than the national average of wealth.

The North-South divide on income continues to grow, the report found. Average weekly incomes in the North East stood at only £455 in 2006, more than a third lower than London, which enjoys weekly incomes of £766.

The earnings gap of £311 is significantly higher than the £282 gap recorded in 2004.

Yet despite its huge wealth, London still has the largest number in the country of children growing up in workless households - 25 per cent. That compares with 15 per cent in Scotland, 12 per cent in Northern Ireland and 10 per cent in the Home Counties.

As well as being the most prosperous region, London was also the highest spender among the regions.

Households in the capital spent an average of £61 each week on housing, fuel and power, far more than anywhere else in the country which spent, on average, £41.

Paul Vickers, the Office for National Stastistics's regional analyst, said the productivity gap between the North and South was particularly stark. “The South East and London dominate the gross value-added charts. London's domination is such that it shows a productivity level nearly 50 per cent higher than the South East. The figures show there might be a slight widening of the North-South divide at the moment.”

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