Devolving powers to cities in the UK could boost the economy by £79 billion, according to the City Growth Commission. 

The organisation has deemed the UK's centralised political economy 'not fit for purpose' and warned that centralised attempts at debt management would fail in the long term.

Sufficient decision-making powers on issues such as transport, as well as financial flexibilities, need to be devolved to city regions for them to become financially self-sustainable, the report argues.

Doing so will be a "huge" challenge, the commission claims, as Greater Manchester - the UK's second largest metro area - remains in an annual £4-5 billion fiscal deficit to the Treasury.

Ben Lucas, chair of public services at the Royal Society for the encouragement of Arts, manufactures and Commerce, and city growth commissioner, said: "In a world in which cities are the new drivers of growth, decentralising our political economy will boost gross domestic product and enable our major metros to achieve their social and economic potential."