Former Labour communities secretary, John Denham, has revealed analysis that claims areas within the UK such as Sheffield could face cuts from the new coalition government.
The analysis claims that more than £130 million of council funding for Sheffield is vulnerable as Councils are instructed by the new Conservative/Lib Dem partnership to find £1.2 billion in savings over the next ten months.
New Ministers have responded, insisting that the core funding for local councils will remain protected.
However, commentators have outlined that this means the main brunt of the cuts could be shouldered by 'area grants' specifically aimed to resolve local issues, such as youth crime and unemployment.
Mr Denham added: "They seem to be pushing the burden of cuts on to local services, and the coalition has decided on an approach to cuts, which would inevitably mean communities with the highest levels of deprivation and need are the ones that are hit hardest, despite all the rhetoric about 'we are all in it together'."