Manchester, Reading, Bristol and Newcastle made `substantial gains' in economic growth over the past decade by attracting higher-value businesses and skilled jobs, it said, but places such as Hastings, Stoke, Barnsley and Wigan were falling behind.
The differences were in danger of being made worse by the credit crunch, the report warned.
Alexandra Jones, associate director at the Work Foundation, said: "The `stuck' cities of Britain have rising proportions of people in low socio-economic groups, and very low rates of employment in better-paying professional jobs.
"Many refuse to recognise that their economic future relies on trade links with a neighbouring city that, despite being a historic rival, is now thriving. And they are often blighted by either chaotic or complacent leadership."
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