Northern towns 'shafted' in new funding formula that favours London, M

Northern towns could be in line for a funding boost after complaints from MPs that a new system for allocating cash to councils favours London.

Ministers have been holding talks with northwest MPs about making tweaks to the fair funding formula – which some MPs claim left them “absolutely shafted”.

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The formula is aimed at giving areas with the highest need the most money from central government.

Northern towns were initially expected to be the big winners. However ministers have used a measure of deprivation that heavily factors in housing costs, which northwest MPs say weights the formula in favour of London.

“It’s completely skew-whiffed the figures …. we’ve been absolutely shafted”, one northern MP told Sky News.

London and the southeast have the highest housing costs in the country and London councils had argued this should be factored into how the money is allocated.

However, northern MPs argue deprivation in their areas is driven by other significant factors including low incomes and lack of opportunity.