MINISTERS should forget divide-and-rule tactics and focus on the “lack of investment” in transport across Britain, rail unions said yesterday as a new report condemned a lack of funding for northern England.

The Institute for Public Policy Research (IPPR) report published today highlights the wide gap between investment in London and in the north of England.

Funding for London is two-and-a-half times higher per person than in the north, according to the organisation’s study.

London will receive £4,155 per person compared to just £1,600 in the north-west, north-east and Yorkshire and the Humber regions combined.

The IPPR said there “should be significant concern” among road and rail users at the disparity.

Transport Secretary Chris Grayling sparked anger last July when he backed a new £30 billion Crossrail 2 scheme in London and the south-east days after a series of rail electrification projects in Wales, the Midlands and the north had been axed or downgraded.

Rail union RMT general secretary Mick Cash said yesterday: “The real issue facing public transport is the cuts and lack of investment throughout the UK.

“The transport crisis has been compounded by the continued adherence to privatisation and short termism and what we need is a genuine national transport plan based on public ownership and massive public investment that meets the need of our economy and all of our communities.”

Mr Grayling claimed per person spending was higher in the north-west than the south-east when local transport schemes were taken into account.

The government’s own breakdown of the figures suggests that there is a relatively even spending pattern across regions, with £1,353 per person in north-west England, compared with £1,026 in London.

But nearly £12bn of Transport for London spending is excluded following a deal between Mr Grayling and London Mayor Sadiq Khan, allowing London to keep its own business rates to spend on transport, the think tank said.

Labour’s shadow transport secretary Andy McDonald said: “This shows that the government’s claims are unfounded and the Tories’ record on transport spending in the north remains abysmal.”

Mr Grayling was hauled in front of the transport select committee on Monday to explain the cancellation of rail electrification.

He was rebuked for not providing all the information that the committee had requested in order to see how he had arrived at the decision.