The treasury committee is to examine the nature and impact of regional imbalances in economic growth across the country and the extent to which these explain poor productivity growth across the UK.
It will establish what regional data is currently available in the UK, how it could be used more effectively in policy development, and whether official regional economic forecasts should be produced.
MPs will seek to learn lessons from other countries on the use of regional economic data and forecasts, and understand how devolution has changed the need for regional data.
The effectiveness of regional bodies, such as combined authorities, in promoting growth will also be considered, as well as the extent to which the devolution of funding can help reduce regional disparities.
Treasury committee chair Nicky Morgan said that disparities between the areas represented by committee members had become “abundantly clear” in her time as chair.
“Whether it be a divide between north and south, towns and cities, or urban and rural, people experience the chasm which exists between various parts of the UK through their day to day lives,” said Ms Morgan.
That included differences not just in economic growth and income, but also in health and educational outcomes and the quality of infrastructure, she said.
“As part of this inquiry, we’ll examine why this is the case, what the effects are in terms of imbalances, such as wages and employment, and how successful regional programmes have been in promoting regional economic growth.
“The treasury committee will seek to identify the disparities and explore how better data can inform policy makers on how best to level the playing field.”
Committee member Alison McGovern said the inquiry would help build an accurate picture of how the economy affected people in different parts of the UK.
“We must understand how regional economic performance shapes people’s lives and their perceptions of where they live and work,” she said.
“It is not sufficient for the government to only offer figures on economic success in aggregate terms. I hope this inquiry can show how the government can get a full picture of the whole of the UK economy in the future.”
Written evidence will be accepted on the treasury committee website until 2 August.
