Rishi Sunak defends move to take funding from deprived urban areas

Rishi Sunak has addressed controversy surrounding a clip in which he appeared to be bragging about working to divert funding from “deprived urban areas” towards more prosperous towns

Rishi Sunak has defended his move to change government funding formulas to take money from "deprived urban areas" and redistribute it, after a clip of him talking about the policy sparked anger.

The Tory leadership contender told a group of Conservative members in Royal Tunbridge Wells that his change ensured “areas like this are getting the funding they deserved”, after inheriting formulas from Labour which "shoved all the funding into deprived urban areas".

Asked by ITV News if the Treasury was shoving too much money into deprived urban areas, Mr Sunak said "yes."

Watch ITV News Political Correspondent Daniel Hewitt's report on Rishi Sunak's bid to become the next Conservative Party leader.

"There are pockets of poverty that exist everywhere, they are not just in big urban cities, they are in small towns and smaller cities... there's poverty everywhere that we need to tackle and make sure it gets the investment it needs," he said.

Speaking near Newcastle - where 42.4% of children live in poverty according End Child Poverty Coalition - he was asked by Political Correspondent Daniel Hewitt whether he believed areas like Newcastle had received money at the expense of places like Tunbridge Wells - an affluent area in Kent.

"I was talking about large cities and that's right. That's right. Yes."

He added: "It's not about Tunbridge Wells. I was actually speaking to people in a broader rural area and for everyone watching, I think it is incredibly wrong to suggest that there isn't poverty or inequality in rural areas."

"To focus only on big urban cities is wrong," he continued.

"There are plenty who need help who are outside of those areas and under my government they will get the investment and the support that they need."

In the controversial clip, filmed in Royal Tunbridge Wells, Kent, on July 29 and shared by the New Statesman, Mr Sunak said: “I managed to start changing the funding formulas, to make sure areas like this are getting the funding they deserve because we inherited a bunch of formulas from Labour that shoved all the funding into deprived urban areas and that needed to be undone. I started the work of undoing that.”

Asked if he'd be willing to repeat the comments made in Tunbridge Wells in Newcastle city centre, Mr Sunak said he "absolutely" would.

Watch Rishi Sunak's comments about 'deprived urban areas' in Tunbridge Wells.

He also defended his record on providing funding and support to urban areas, saying: "I'm the person who put Freeport in Teesside. I put the treasury in Darlington. That's not a big urban city. That's not Manchester or Newcastle or Liverpool."

The prime ministerial hopeful is in the North East for a hustings event, in Darlington, this evening with rival Liz Truss.

He's released a new policy ahead of that in which he's promised to "help families and pensioners through the cost of living crisis using the framework he established as chancellor".

In a press release outlining the policy, he said: "I'm very clear about what is required to help people, and as soon as we know how much bills will go up by, I will act."

He would not give a figure of how much support he would be providing to struggling families, but he insisted it would help people who needed it most, in contrast to Ms Truss's promised tax cuts, which he said would not help pensioners at all.

Rishi Sunak on how he will help struggling families this autumn and winter.

Asked if people would get a "few hundred pounds" in support, Mr Sunak said "yes".

"We don't know what the bills going to be but there will be more support," he added.

"I do want people to have peace of mind... my plans are going to help people".

He said he's "confident" he could find the cash to pay for additional support by making efficiency savings from across government.

Rishi Sunak on whether he's spoken to Boris Johnson recently and if he's still the underdog.

Mr Sunak is trailing in the polls and loyalty is thought to be a contributing factor, with many Tory members critical of his Cabinet resignation - a move which sparked Boris Johnson's downfall.

He revealed he's not spoken to the outgoing prime minister since resigning but would not comment on the state of their relationship.

The former chancellor repeated his claim that he's the rank outsider, but cast doubt over polls which put him behind.

Liz Truss has said if she's elected prime minister UK residents will have lower taxes "from day one".

"I'm definitely the underdog in this race," he said.

But Mr Sunak countered: "I think it's very hard for polls to be accurate about Tory members who are a very particular population, but what's clear is the reception I'm getting everywhere I'm going is really positive."

"I think the message is really resonating with people and there's weeks of this to go. So, I'm gonna fight hard for every vote until the last day of this contest."

Want a quick and expert briefing on the biggest news stories? Listen to our latest podcasts to find out What You Need To Know