Britain's Conservative-led government on Monday promised to rebalance a "London-focused" economy if it is re-elected in 2015, setting decentralization as a key battleground in the run-up to the vote.

The coalition has been accused of ruling for the benefit of the capital, whose economy dwarfs that of other British regions, and a September referendum on Scottish independence has fueled debate on localized rule.

Prime Minister David Cameron on Monday vowed to give local authorities £5 billion ($8.6 billion, 6.4 billion euros) to spend on housing, transport links and traineeships across England if he is re-elected.

"For too long our economy has been too London-focused and too centralized," Cameron said as he announced the project, which aims to improve transport links to make smaller British cities more attractive for businesses.

The promise came after the Labour party promised to promote regional growth by giving local areas power over £30 billion in spending, including funds to train young people and held them find work.

"This will begin to reverse a century of centralization," Labour leader Ed Miliband wrote in The Guardian newspaper late on Sunday.

A May survey by pollsters YouGov and research group Center for Cities found a majority of British people living elsewhere believed national policies were focused on London, and that many believed the city's economic and cultural dominance was to the detriment of other regions.