The UK's North-South divide is set to widen as southern parts of the country experience some of the strongest economic growth rates in Western Europe, it was predicted yesterday.

London and the South-east can expect to see average GDP growth of around three per cent a year between 2005 and 2015, according to economic forecasting group Experian.

This compares with average annual growth of 2.5 per cent for the UK as a whole, and is well up on the 2.1 per cent predicted for Western Europe.

All Midlands regions are lagging behind.

The West Midlands along with Herefordshire, Worcestershire and Warwickshire will see average annual growth of 2.2 per cent.

Shropshire and Staffordshire will do even worse, with just 1.8 per cent.

Inner London, Bedfordshire and Hertfordshire, Berkshire, Buckinghamshire and Oxfordshire and East Anglia are all set to be in the top 20 fastest growing regions in Western Europe between now and 2015.

Northern regions will see the slowest growth in the UK, although none of them fall into the bottom 20 regions for Western Europe.

The group expects GDP growth in Cumbria to average just 1.5 per cent a year for the next ten years, while the Highlands and Islands will not perform much better at 1.6 per cent a year, and growth in both East Riding and North Lincolnshire and North East Scotland is expected to average 1.7 per cent.

Experian also expects southern regions to outperform northern ones when it comes to employment growth.

Inner London is the only UK region to make it into the top 20 European growth hotspots, but North East Scotland, the Highlands & Islands, South West Scotland and Cumbria are among the 20 areas with the weakest outlook for employment over the coming decade, with predictions of job losses.

Again, the Midlands performs poorly.

Employment growth in the West Midlands is predicted to be 0.2 per cent a year. Herefordshire, Worcestershire and Warwickshire will see 0.1 per cent growth, while Shropshire and Stafforshire will lose jobs - minus 0.1 per cent.