A FORMER minister has voiced support for the campaign to scrap controversial Government spending rules which mean the North-East loses out by millions of pounds to Scotland.

Joyce Quin, the Gateshead East and Washington West MP, who on Monday resigned as Agriculture Minister, has added her voice to calls for a fairer system to replace the Barnett Formula.

She told a Westminster news conference: "I cannot say I am the number one fan of the Barnett Formula."

She said moves towards regional devolution would mean "the Government funding formula will have to be addressed".

She was speaking as pressure grew on ministers to make early moves towards an elected regional assembly for the North-East.

At the conference, called by the Newcastle-based Campaign for the English regions, MPs and campaigners urged the Government to include legislation on regional devolution in next week's Queen's Speech.

But there is a feeling at Westminster that there may be little more than a commitment to publishing a White Paper on the issue, if that, given the Government's stated priorities of improving public services, including education, health and transport.

A consultative Green Paper on reform of local government finance promised this year may give early clues as to the Government's future attitude to the Barnett Formula.

Meanwhile, campaigners for regional devolution are taking heart from Prime Minister Tony Blair's shake-up of Whitehall, which saw responsibility for regional policy split between three departments.

Deputy Prime Minister John Prescott's new role will see him retain an overall coordinating role on regional policy at the Cabinet Office.

While Stephen Byers, Secretary of State for Transport, Local Government and the Regions, has yet to say where he stands, campaigners take cheer from the appointment of his deputy, Nick Raynsford, as the new Minister for the Regions.

Mr Raynsford was an enthusiast for the setting up of the London Assembly and is on record as supporting regional devolution