Funding for the Scottish parliament and the Welsh assembly from Westminster is set to be significantly reduced after the general election.

New figures from the Treasury have shown that public spending in Scotland is 23 per cent higher than in England, while Wales receives 18 per cent more spending, and Northern Ireland 39 per cent.

The current funding formula is said by deputy prime minister John Prescott to have only applied for the first parliament, and will be included in a review of local government finance promised by Labour for after the election.