PATIENTS in the region are being denied fair access to drugs and treatment because of wide variations in NHS spending, a report out today has found.

The King's Fund charity said "serious questions" needed to be asked after its study revealed a postcode lottery in three key areas.

It discovered that annual spending on mental health and cancer in some areas of England is four times that in other places.

Even when the socio-economic needs of local people are taken into account, there is still wide variation in primary care trust (PCT) spending on mental health, cancer and circulatory problems.

Despite the severity of health problems in the North-East, most PCTs in the region are in the bottom half of the league tables for spending.

Even within the region, some local primary care trusts spend much more than neighbouring areas.

Daventry PCT in Northamptonshire spent most per head - £132 - on cancer and tumours while Craven PCT in North Yorkshire spent £92 and Hartlepool PCT spent just £53.

Derbyshire PCT spent most per head on mental health - £265 - compared to Newcastle's total of £179 and only £79 per head in South Tyneside.

When it comes to circulation problems, including coronary heart disease, the highest spender was Wyre PCT, in Worcestershire, which spent £173 per head, compared to Hambleton and Richmondshire PCT, in North Yorkshire, which spent £149, and Newcastle PCT, which spent only £105 per head.

The report, Local Variations in NHS Spending Priorities, said the three Government priority areas of heart disease, cancer and mental health consumed the largest share of PCT spending.

King's fund chief economist Professor John Appleby said: "This new data is very revealing and raises serious questions about the consistency of decisions PCTs make about how much they spend on different diseases."