Is it grim up north when it comes to money?

Surrey has been highlighted by both Sheffield and Liverpool Councils as doing better than the north with its Council Tax.

In Sheffield, council chiefs have warned a rise in Council Tax is “inevitable” to pay for services.

But the city raises less money than some other places because homes here are cheaper – they are in a lower Council Tax band so residents don’t pay as much.

David Phillips, head of strategic finance, told a meeting: “It’s great if you live in Surrey and raise over £6m with Council Tax but if you are us in Sheffield that doesn’t work quite so well.”

It was also brought up at Liverpool Council. A report by local paper the Liverpool Echo said: “When Liverpool raises its Council Tax by one per cent, it provides an extra £1.75m in funding. When Surrey does it, it gives that council £7.6m.”

But Surrey is also struggling with its finances and has to make up to £250m savings by 2021.

The number of Band D and above properties may be higher in Surrey which would mean their Council Tax generates more income – there are lots of top end Council Tax band properties.

But it has other pressures. On paper Surrey loses out with transport funding but in reality has the busiest motorway in Europe. It has less road per mile than somewhere like the West County but being a commuter belt there are millions more cars and lorries travelling on their roads each day.

It may seem a richer county but funding allocation doesn’t take into account Gatwick and Heathrow as transport hubs and people from outside of the county travelling through it to get to London.

Plus there are huge areas of deprivation so there is a massive financial divide.

So why is Surrey the place highlighted by other councils? This probably dates back a couple of years when a recording was leaked of a private meeting in which the county council leader referred to a “gentleman’s agreement” with government ministers ahead of a U-turn on raising Council Tax. Ministers later denied it.

Sheffield Council say it works with other Core Cities to get fairer funding. Eugene Walker, director of resources, told a meeting: “Our messages are pretty consistent with core cities.

“There’s been a big debate about the deprivation index formula. Everyone says it but a Government minister pops up and says everyone should get the same per head. You can do all the lobbying you want and at the end of the day it’s still a political decision.”