The threat of a cut in council funding across Sussex has provoked widespread anger, an MP told the Government.

Deputy Prime Minister John Prescott has announced plans to change the way money is allocated to local authorities and police forces.

The move would channel cash away from wealthier parts of the South-East towards poorer inner city areas, mostly in the north of England.

As a result, the education settlements paid to East and West Sussex County Council and to Brighton and Hove City Council would all be hit.

Sussex Police Authority would also do badly under the new funding regime.

During a Westminster debate on Thursday night, Bexhill and Battle MP Gregory Barker warned the Leader of the House, Robin Cook, to expect a backlash.

He said: "There is widespread anger and disgust in my constituency at the Government announcement.

"Is the Leader of the House aware this is seen as a blatant attempt to channel money from the South-East and into Labour heartlands?"

He said the proposals would lead to a council tax increase of up to 33 per cent in East Sussex, the poorest county council in England.

Mr Barker said: "Which would he prefer, that council tax goes up that much, or that the council slashes public services to the vulnerable?"

Mr Cook insisted the distribution of Labour supporters meant it was not possible for the Government to be biased against any one region.

He also said it was meaningless to predict any financial consequences until the end of the consultation period.