Radical changes in the way transport cash is handed out will leave some West councils as big losers while others will do well, it emerged yesterday.

The Government is reviewing the way it allocates grants and wants to exclude the criteria that takes account of whether the roads are in a poor condition.

Ministers do not want to effectively "reward" those local authorities who have maintained their roads inefficiently, or spent the cash on other things.

But the effect of the shake-up could see some West councils lose as much as 20 per cent of their allocations – while others gain by up to 26 per cent. The Western Daily Press has reported that councils have lost millions of pounds in transport cash already – with more severe cuts to come shortly.

Ministers are now reviewing the formulas used for these grants, for the first time in five years, to ensure the cash is distributed fairly.

As the Daily Press has reported, the West does notoriously badly from central Government grants, especially compared with London and the North.

Local education authorities in the West are at the bottom of the league table of spending on school pupils, and the area's police authorities are seriously underfunded.

So the transport review is likely to trigger calls for a wider investigation of how all Whitehall money is divided up, to end the West's Cinderella status.

The transport grants are based on population, road use and other statistics.

The overall effect of the proposed changes would see Herefordshire lose 20 per cent of its allocation, Gloucestershire 18 per cent and Bath & North East Somerset 17 per cent, while Devon would be unchanged.

But Wiltshire would gain by 26 per cent, Somerset by 25, North Somerset by 15, Dorset seven per cent, South Gloucestershire six6 per cent, Swindon five per cent and Bristol four per cent.

Analysis of the figures shows Herefordshire, B&NES, Gloucestershire, Bristol and Devon lose out when poor road conditions are no longer taken into account.

A Department for Transport spokesman said: "It could be argued allocating more money to local authorities whose roads are in a poor condition rewards those that spend funding inefficiently or on other priorities.

"The department therefore wishes to invite views on the option to take road condition data out of the maintenance formula."

Ministers are worried councils that have kept their roads in top condition risk being punished for their good work under the current system, which would give them less money.