LABOUR’S leadership candidates all promised “fair funding” for the region’s hard-up councils today (Thursday, July 2).

During a leadership hustings in Harrogate, Hartlepool’s Stephen Akers-Belcher challenged the would-be party leaders to say how they would stop spending cuts hitting the poorest hardest.

In response, shadow care minister Liz Kendall condemned Government changes to council funding arrangements as morally reprehensible and economically illiterate and promised a “fair funding formula” based on need.

Left-winger Jeremy Corbyn said the Government’s approach was “disgusting” and Labour must reject austerity and invest in the economy, growth and people.

Shadow home secretary Yvette Cooper said a “much fairer funding plan” was needed and shadow health secretary Andy Burnham pledged to introduce a funding formula based on "need and deprivation".

Earlier, Communities Secretary Greg Clark had said councils would "absolutely" have to make further savings, but he was willing to engage with councils on how they should be implemented.

Later, Durham County Council leader Simon Henig, describing Labour councillors as the “backbone of the party”, challenged the candidates to involve them more in decision making.

Ms Cooper promised a stronger voice for councillors on Labour’s National Executive Committee and a standing committee of the shadow cabinet including local councillors.

Mr Burnham said Labour had stopped listening to its councillors and needed to show them more respect and recognition and provide more training and support.

Miss Kendall backed the NEC and shadow cabinet committee proposals, while Mr Corbyn called for councillors to be involved in a major constitutional convention and involved now in shaping Labour policies.

During a wide-ranging hour-long debate, candidates also faced questions on the economy, devolution, health and how to respond to May’s General Election defeat.

Ms Cooper said the party had lacked optimism and needed an ambitious vision for the future, while Mr Burnham said Ed Miliband had done a great job but Labour had lost its emotional connection with millions and needed to get “back in touch” with ordinary people.

Miss Kendall said Labour had had nothing to say to far too many people, such as those running small businesses, and Mr Corbyn said the party had failed to inspire and excite people and must “break” with austerity.

Ballot papers for the Labour leadership election will go out in mid-August and the winner will be announced at a special conference on Saturday, September 12.