Labour's public sector spending has created a wave of 'Soviet' boroughs where around half the population depends on the state for work, figures revealed yesterday.

An analysis of council statistics showed that in ten areas more than 40 per cent of the workforce is employed in the public sector.

Many are deprived areas where the true dependency on the state will be far greater once benefit payments to those out of work are taken into account.

All but two have Labour MPs - the others are Liberal Democrat.

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Top of the list compiled by the Centre for Economics and Business Research is Castle

Morpeth, Northumberland, where - in an echo of the Soviet system where everyone was employed by the state and therefore owed their loyalty to the communist party - 57.1 per cent of jobs are in the public sector.

Morpeth, a medieval market town in the heart of the borough, is one of the most desirable places to live in the North East, with surrounding villages home to Premier League footballers.

But the town is also the administrative centre of the borough council and Northumberland county council, which accounts for much of its state sector employment.

Even accounting for this, the public sector dominance in Morpeth is actually understated.

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