THE Government last night quashed hopes that it was to redraw the funding formula which has created a billion-pound divide between the North-East and Scotland.
Commons leader Robin Cook said Labour had no plans to revisit the Barnett Formula - the 23-year-old equation drawn up to help the less well-off parts of Scotland, and Wales.
Critics of the formula say places such as the North-East are now in greater need of cash help.
Speaking in the Commons, Mr Cook did, however, hold out new hope to campaigners for a North-East regional assembly, by strongly backing the idea.
Replying to a question by Derek Foster, MP for Bishop Auckland, County Durham, he said: "We have put forward proposals by which regions such as the North-East can have their own regional assemblies, which will allow local people to decide best on the delivery of local services.
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