The Northern Powerhouse is being "undermined" by austerity despite signs of economic growth, a think tank says.
Five years since its launch, Greater Manchester mayor Andy Burnham said the project was at risk of "fizzling out".
The Institute of Public Policy Research (IPPR) North said the economy had "moved in the right direction" but more children were living in "poor" households.
The government said record numbers of people were in work across the north.
IPPR North, a centre-left think tank, said the Northern Powerhouse had succeeded in devolving power by creating five new "metro mayors" and a regional transport body - Transport for the North.
However, it said the government had "undermined" the project while making cuts in public spending. Although spending has recently increased, the north has seen an overall £3.6bn a year reduction in real terms since 2009-10, while south-east and south-west England saw a £4.7bn rise.
Rise or fall in the number of jobs
Percentage change between June 2014 and March 2019 /continued