The document, from left-of-centre thinktank Compass, warned that massive rises in house prices and bosses awarding themselves above-inflation pay hikes were fuelling a growing wealth gap.

And it said that the difference in life expectancy between the richest and poorest parts of the country has grown from less than nine years in 1999 to almost 11 years now.

The Compass report Closer To Equality? takes up a challenge laid down by former Government minister Peter Mandelson in 1997, when he told "doubters" to judge whether Labour had made Britain a more equal society after 10 years in office.

And it found that, on the issue of income inequality, "New Labour has failed to make Britain a more equal place".

In a foreword to the report, Labour deputy leadership contender Jon Cruddas called for the party to adopt a new "overtly pro-equality agenda".

He warned that Labour's traditional support would abandon it at the ballot box if it failed to make clear that it was delivering greater equality.

And he said it was time for the party to consider "more progressive taxation policies" to restrain the rocketing wealth of the super-rich.

The report found that the share of national wealth owned by the richest 1% in British society rose from 17% in 1991 to 24% in 2002, while the share of the bottom 50% fell from 8% to 6% over the same period.

The Sunday Times Rich List showed that the combined wealth of the richest 1,000 has risen from £98.99 billion in 1997 to just short of £360 billion today, a rise of 263%, said the report.