RICH parts of England are being favoured by the Government, the mayor of one of the poorest areas in England says.

Middlesbrough Mayor Ray Mallon said a scheme to help people cope with spending cuts will mean wealthy councils receive twice as much money as those in deprived areas.

The Government’s Council Tax Freeze Grant, worth £650m, will give money to councils that limit their council tax rises to 2.5 per cent.

Mr Mallon said areas with more Band D and above housing will receive more than in povertystricken areas such as Middlesbrough, which has an abundance of lower value housing.

A Government spokesman refuted the claims that some areas were being treated better than others.

Middlesbrough and Elmbridge, in Surrey, were ranked at opposite ends of a survey by Experian into how councils were likely to cope after the Government’s £6bn spending cuts.

Out of Middlesbrough’s 23 council wards, 16 are deprived and five are ranked among the top one per cent in the country for social deprivation.

Research by Middlesbrough Council shows the Tax Freeze Grant will mean the top 20 Experian areas receive more than the bottom 20. Mr Mallon said that, despite similar populations, Middlesbrough would receive £1.2m and Elmridge £2.06m.

He said: “To all intents and purposes, the Government has declared financial war on deprived areas. Not only do we face death by a thousand cuts, but now we are expected to effectively subsidise wealthy areas against the impact of the recession.”

A Government spokesman said: “The terms of the scheme are exactly the same for all authorities –every authority has to freeze their Band D bills in order to qualify – so it is not the case that some are being treated better than others.

“Each will receive a share of the £650m fund reflecting its own circumstances.”

The full extent of the savings councils will have to make will be revealed today when the Local Government Financial Settlement is announced.

A spokesman for Hartlepool Borough Council, ranked 316 out of 324 in the Experian poll, said that although it had identified several cutbacks, it still needed to save £5.6m more.