The European Union referendum revealed that “too many people feel left behind”, Chancellor Philip Hammond has claimed.
He warned: “A dangerous divide is opening up between those who believe they have a stake in the success of our economy and those who do not.”
In his speech to the Conservative conference in Birmingham, he committed the Tories to ensuring wealth is shared fairly across the UK - and between generations.
And he said the Government's policies for the Midlands, known as the Midlands Engine, will help share economic growth fairly.
Mr Hammond also paid tribute to former Chancellor George Osborne, saying his decisions after the banking crisis had “pulled us back from the precipice”.
But his comments also suggest that the previous government, led by David Cameron and Mr Osborne, did not do enough to create a fairer society.
He said: “One of the key messages of the referendum campaign was that large parts of our country feel left behind.
“They see the country getting richer, but don’t feel part of that success.
“A dangerous divide is opening up between those who believe they have a stake in the success of our economy and those who do not.
“It is one of the central missions of this government to tackle that divide, to see the benefits of economic growth shared more evenly across the regions, and across the generations.
“A key part of this agenda is harnessing the economic power of our cities.”
The Government’s “Midlands Engine” project, designed to bring the West Midlands and East Midlands together, as well as the Northern Powerhouse project, will play a key role, he said.
“The Midlands Engine, with its hub here in Birmingham, powers 11.7 million lives, generates £220 billion of Added Value to the economy, produces 18 percent of UK goods exports and more than a fifth of UK manufacturing output.
“In this great region, there are 320,000 more people in work than there were in 2010.
“But both productivity and economic growth have lagged behind the UK average.
“So we have developed our Long Term Economic Plan for the Midlands, and it is already delivering.
“But we can, and will, do more.”
The new West Midlands Combined Authority would help create jobs and growth in the West Midlands, he said.
“We are working with the West Midlands Combined Authority on a second devolution deal to include new powers on transport, criminal justice, data, planning and skills.”
Mr Hammond set out policies designed to shore up Britain’s economy during a period of “turbulence” which he has forecast as a result of Brexit.
He announced £220 million of new funding for the tech sector to support efforts to transform biomedical and computer innovations into marketable products.
Mr Hammond warned that the UK economy faces a “rollercoaster” ride over the coming two years as the UK negotiates a new relationship with its EU partners.
But he said he was ready to take “whatever steps are necessary to protect this economy from turbulence”.
And he hinted that this could include tax cuts to stimulate economic activity, telling delegates that “fiscal policy may also have a role to play” alongside interest rate reductions to boost confidence.”
