Conservative councillors in Northumberland have warned rumoured changes to the way funding for local authorities is calculated would be a “kick in the teeth” for the council.

It comes after The Times reported that less consideration is expected to be given to the remoteness of councils when it comes to getting Government cash.

The remoteness element of the calculation takes into account the extra cost of delivering services in large rural and remote areas such as Northumberland, but could be removed as part of the Government’s ongoing Fair Funding review. The final funding review is due to be published at the end of the month.

Cllr Nick Oliver, cabinet member for finance, has urged Northumberland Labour MPs Joe Morris and David Smith to object to any proposed change.

Cllr Oliver was speaking during the presentation of an annual report from the finance department, which included early details of the administration’s plan for setting the budget early next year.

He said: “The budget is a very challenging process – it’s always a challenge but we will deliver a balanced budget in February, even after losing the rural services delivery grant last year.

“We are calling now on the Government not to remove our remoteness funding. The County Councils network has written to the Ministry of Housing, Communities and Local Government to make that request.

“I hope that Joe Morris and David Smith, who represent two of the most rural constituencies in the country, will support this request and object strongly if the Government try to make any changes.”

Speaking after the meeting, Cllr Oliver said: “This, on top of the removal of the rural services delivery grant, would be another kick in the teeth for rural councils and their residents.”

The council had expected to receive around £3.2 million from the rural services delivery grant this financial year. However, the central grant from Government increased by more than £20 million.

In a joint response, Mr Morris and Mr Smith said: “We know Cllr Oliver will welcome the extra £25m Northumberland received last year from the Labour Government. We know he will share our concern that last year NCC spent £90m adding to the highest debt pile in the North East.

“The current formula for future council funding gives Northumberland a better weighting than London councils like Westminster, Camden and Hackney. We’ll be fighting for it to stay that way, and we know NCC will be working hard to bring its debt down and use their increased funding from Labour wisely.

“We are disappointed that the Northumberland Conservatives have chosen to play politics rather than working together as part of a bipartisan approach for the benefit of everyone living in our county.”

The Ministry of Housing, Communities and Local Government was contacted for comment.