THE Conservatives stand accused of planning to move government cash from Swindon to rural Wiltshire.

MP Michael Wills (Lab, North Swindon) claims former Wiltshire council leader Peter Chalke has helped devised a policy to be launched before the general election which would cost the town millions if the Tories gained power.

But Mr Chalke, currently Tory leader of the Local Government Association, yesterday said the MP has his facts wrong.

Swindon North MP Mr Wills seized upon comments by Mr Chalke in the Local Government Chronicle. Mr Chalke confirmed the Tories are on about to announce a policy which would overhaul local authority spending to benefit underfunded rural areas.

He said: "The distribution formula has been skewed by the government in favour of their friends, and rural areas have lost out."

The new policy is expected to be outlined by Conservative leader Michael Howard within two weeks. Mr Wills said it proved the Conservatives are biased against towns like Swindon.

He said: "If the Tories came to power Swindon Council would face more cuts. Swindon is a Labour urban island surrounded by rural Conservative Wiltshire.

"This policy is designed to pay back Tory supporters in the county. This is a big issue for the people of Swindon who have already endured so many cuts at the hands of the Tories."

But Mr Chalke insisted the policies were designed to take cash from large northern cities and not smaller urban areas like Swindon.

He added: "Swindon would get swept up with Wiltshire when it came to funding changes.

"It isn't seen as a big urban area and I haven't seen any evidence that Swindon has gained from the switch between rural and urban areas. Can Mr Wills provide evidence otherwise? He should find out why his Government have not helped the people of Swindon."