The data showed that South East and London based businesses received funding of more than £700 million, whereas those in the North, Yorkshire and the Midlands combined received £140 million.
Labour's analysis of Future Fund data shows that the average award for individual businesses in London was £1,058,422, compared to £892,857 in the North East.
Ed Miliband, the shadow business secretary, accuses the Government of “reinforcing economic imbalances in our country”.
The report argues that the figures are especially alarming when considering the comparative population sizes of the different regions, stating: “The discrepancy is even starker when compared to the population with 18 million people in the South East and London compared to 28 million in the North, Yorkshire and Midlands.”
The Future Fund programme is designed to support businesses impacted by the pandemic that are usually reliant on equity investment.
These figures also highlight the regional inequalities in terms of the number of businesses supported as approval rates for applications from the North West, Scotland, Wales and West Midlands were 84% lower than those from London and South East businesses.
The Labour Party argues these findings show the Government’s failure to encourage innovation outside of the South.
Ed Miliband said: “While the Government talks about backing the North and Midlands, the reality is starkly different. Their interventions are making regional inequality worse, not better.”
A Government spokesperson said in response: “We have provided an unprecedented £280 billion of support for businesses affected by COVID-19 in every nation and region of the UK.
“The Future Fund uses a set of standard terms with published eligibility criteria, independent of ministers.
“In addition to the Future Fund, the British Business Bank has provided nearly half a billion pounds to high-growth firms outside of London.”