Britain could be £24 billion a year worse off unless the Government helps the South East shoulder the nation's economic recovery, new research has revealed.

The stark warning came from Dr Andrew Povey, chairman of South East Strategic Leaders (SESL)*, as the Chancellor prepares to announce his Budget.

The £24 billion is enough money to pay for 1,000 new secondary schools, 54 new hospitals, or nine new aircraft carriers.

As focus is turning to the private sector to get Britain out of its economic black hole, independent research by Oxford Economics on behalf of SESL revealed business growth in the South East should not be taken for granted in the current economic climate.

If just 20% of the South East's and London's predicted growth by 2020 does not materialise, the Government's fiscal balance would be £24 billion less**. The alarming figure has sparked a call for Chancellor George Osborne to nurture the region's economy in his Budget tomorrow.

Measures such as investing more money in the South East's roads or extending the National Insurance tax holiday scheme to the region's businesses would stimulate the economy and increase the chances of the South East reaching its growth predictions in a tough financial climate.

Dr Andrew Povey, chairman of South East Strategic Leaders (SESL), said: "Britain needs the South East more than ever to lead the economic recovery but central government can't take the region for granted anymore. Proper investment in the South East would unleash the region's economic potential, creating more jobs, more growth and higher tax revenues that can drive the rest of the UK along the road to recovery. Investment in the South East is an investment in the UK as a whole.

"In the financial year 2007/08 the South East effectively subsidised public spending in Wales and Yorkshire. During that year the South East contributed £18 billion more in tax to the economy than the Government spent on the region. In the same year combined public spending in Wales and Yorkshire was £18 billion more than the amount collected in taxes."

The South East in the Oxford Economics study refers to the counties of Surrey, Berkshire, Buckinghamshire, Hampshire, Isle of Wight, Kent, Oxfordshire and East and West Sussex.

* South East Strategic Leaders (SESL) is an organisation made up of 21 local authorities that represent in the region of 10 million people.

** Oxford Economics predict that if the South East and London lost 20% of the extra business expected from the global upturn, output would be 10% lower resulting in Britain's fiscal balance being around £24 billion a year worse by 2020, which has huge implications for the Government's deficit reduction target, as well Britain's ability to support less successful regions.