THE region’s poor deal on public spending has been highlighted by new research.

Figures produced by the independent think-tank, the Institute for Public Policy Research (IPPR), show the North-East received £5,210 per person in 2008-9.

Although the figure is above the UK average, it is £800 less per head than received by people in Scotland.

And it is £1,200 per head less than London.

Public spending settlements are calculated using the Barnett Formula.

The formula is intended to bring about equal spending per head across the nations.

However, IPPR analysis of new figures produced by the Treasury shows little evidence of this happening outside of Northern Ireland.

Guy Lodge, IPPR associate director, said: “We strongly support the report’s view that the Barnett Formula should be replaced by a needs-based grant.

“Our analysis of Treasury figures shows that funding across the UK is not distributed in a fair or equitable way.”

IPPR says that a new financial settlement is needed to combine greater revenue raising powers for the devolved administrations, with a block grant from the Government based on need.

This system would be more equitable and encourage efficiency, the think-tank claims.