RURAL areas in the region may lose out on Government cash in favour of cities, a councillor has warned.

Ossie Hedley, of Teesdale District Council, in County Durham, was speaking after plans were announced to change the way funding is allocated to rural areas.

The Rural Services Partnership, a cross-party coalition of England's 50 most rural local authorities - which includes Teesdale District Council - is worried the new system will take money from country communities.

A partnership report warns that too little notice has been taken of rural deprivation and the extra cost of providing services in rural areas.

Councillor Hedley said: "Rural councils are small and often lack the political clout of big urban authorities.

"The fear is that pressure on ministers from London and the big cities will skew the system in their favour.

"This would result in yet further reductions in funding for vital services to poorly-supported and scattered rural communities at a time when rural England is desperate for reassurance that its concerns are being heard in Westminster and Whitehall."

The council has written to minister Nick Raynsford, and has enlisted the support of Bishop Auckland MP Derek Foster in calling for changes to be made to the proposals.

The partnership is also concerned that too little account has been taken of the extra cost of providing services in rural areas, and that governments could exploit the system to favour political allies.

"There is a false, general assumption that urban areas are stricken by the worst forms of poverty, and that rural areas are the most affluent," said Coun Hedley.

"The true picture is, of course, much more complex. Rural areas tend to suffer from low levels of public service provision, poorly paid or part-time employment prospects and relatively low wealth."