North 'will benefit from funding shake-up'

A number of north of England authorities will benefit from a wide-ranging reform of central government grants to local authorities, according to Local Government Minister Nick Raynsford.

The change will simplify the grant allocation system, which he describes as "complicated"

Mr Raynsford made the claims during the unveiling of the proposed new formula, which is set to be introduced in April and will cover approximately a quarter of public spending in England.

This is the money spent by local authorities on the services they provide, such as education, social, police and fire services.

Mr Raynsford said the formula aims to replace the Standard Spending Assessment with a system that is fairer and reflects local pressures and deprivation.

This equates to more than 85%, about £36bn annually, of the resources central government provides for these services.

Mr Raynsford refuted suggestions that the proposal was an attempt to redress the historical under funding of northern regions.

"We are trying to fund as accurately as possible the need to spend in all parts of the country."

But he added: "A number of northern authorities do stand to gain, but this is not about shifting resources in one direction or the other."

The minister said the measure would see grant variations within regions to reflect the wealth of different areas.