Government plans to redraw the town hall funding formula will see more cash going to more affluent Tory areas at the expense of the most deprived parts of the country.
A Labour analysis of the proposals suggests that nine of the top 10 councils that will suffer the biggest spending cuts are Labour councils.
However, eight of the 10 best funded are Tory controlled.
The Government’s plans also mean that the money allocated to councils would no longer be weighted to reflect the higher costs of poverty and deprivation.
Labour criticised the proposal to redirect cash from deprived inner cities – mostly in London – to the affluent Conservative-voting shires.
The analysis shows that Labour councils will see falls of 28% on average from 2010 to 2019, compared to a 19% decline for Tory authorities.
This means that while Tory town halls face an average decrease of £115 per household, the equivalent for Labour boroughs is more than £500.
At the same time, nine of the ten most deprived councils in the country have suffered cuts of almost three times the national average cut of £243.
Blackpool, Knowsley, Kingston-upon-Hull and Liverpool councils are amongst the worst affected.
Andrew Gwynne MP, Shadow Local Government Secretary, told the Mirror: “The Tories’ approach of targeting the most deprived areas is callous and calculated, and under the guise of manipulating existing funding models, could get even worse. The Government must change its plans and prioritise funding for the most deprived council areas.“
The proposed changes were released just before Christmas but the Government has insisted it is a technical exercise designed to simplify the distribution of grants.
But critics believe ministers have bowed to pressure from Tory county councils amid well publicised difficulties faced by counties such as Northamptonshire.
It was also revealed that 74% of cuts to local government funding over the last decade have fallen on cities – despite housing just half the population.
New research by the Centre for Cities shows a clear geographical divide in where the cuts have fallen, with the top five worst affected cities all in the North of England.
Those least equipped to absorb the loss have faced the biggest cuts – with Barnsley and Liverpool the worst hit, and Oxford and Luton the least.
People living in cities shouldered the equivalent of £386 worth of cuts per head since 2009/10, compared to £172 per person elsewhere.
The report also found that rising social care demands were adding to the pressure on councils’ finances.
Ten years ago, just four out of 62 cities spent the majority of their budget on social care, compared to almost half now.
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