DEPRIVED areas of the North-East - among the worst in the UK - could lose out on Government funding under new counting methods.

Councillors representing all five of the boroughs in Tees Valley - Darlington, Redcar and Cleveland, Middlesbrough, Hartlepool and Stockton - will discuss the threat tomorrow, while MPs are poised to intervene.

A report reveals 50 of Tees Valley's 119 wards are among the nation's top ten per cent most deprived neighbourhoods.

The document, going before the Tees Valley Joint Strategy Committee, warns proposed changes to indicators used to assess Government funding priorities "would result in rather less regard being given to the Tees Valley's level of deprivation as all five boroughs 'move down the rankings', i.e would appear less deprived on this measure."

JSU member, Tory councillor Stephen Smailes said: "We are obviously losing out on funding and central Government have got to realise that and look at the North in general.

"An area somewhere north of Leeds and south of Newcastle should become a designated area for Government help. Irrespective of what party is in Government we should have a minister for the north to put our case to civil servants and ministers."

John Lowther, the Joint Strategy Unit director, said while most of the proposed changes to the index are reasonable and fair "there are a number of proposals which are ill-considered and cause concern with signs that some are losing their focus on deprivation."

Ashok Kumar, Labour MP Middlesbrough South and East Cleveland, said: "I intend to ask all my colleagues on Teesside to unite together and lobby ministers once this report has been discussed.

"Unemployment is down by 45 per cent in my constituency since 1997 and I think great credit for this goes to the Chancellor and to this Government.''