The New Homes Bonus is diverting funding from some of the most deprived councils in England to the wealthier South East, the Special Interest Group of Municipal Authorities (SIGOMA) has claimed.
SIGOMA said its members were forecast to lose more than £453m through the implementation of the policy by 2015/16 while councils in the South East were estimated to gain £271m.
It added North East councils would have lost an average of £40 per head by April, with the figure £30 for authorities in the North West.
Some of the most drastic cuts have been in Liverpool and Knowsley, where the loss per head is expected by SIGOMA to be £78 and £102 respectively.
Chair of SIGOMA, Sir Steve Houghton, who is also leader of Barnsley MBC, said: ‘SIGOMA has consistently highlighted the fact that the Government’s cuts are having a disproportionately negative impact in the more deprived regions of the country, which these figures clearly support.
‘A policy that seeks to benefit communities is actually diverting funding away from those who need it the most, as they lose crucial funding at a time when budgets are already under enormous pressure.’
