THE Government's commitment to eradicate poverty is bound to fail, says a leading UK think-tank.

Bury Council leaders say the findings prove that they need more money to tackle local problems.

The Social Market Foundation (SMF) argues that the current measure of poverty, those living on less than 60 per cent of median income, fails to identify the real level of deprivation in this country.

Tom Startup, SMF researcher, said: "The Government's conventional measure of poverty is flawed since it is a crude measure of inequality not poverty. Ministers urgently need to settle on a better measure, otherwise they are fighting the battle against poverty in the dark."

The SMF's view has been seized upon by Bury and other members of SIGOMA (Special Interest Group of Municipal Authorities outside London). These councils have £40 less per head than the national average to provide services and tackle poverty.

Councillor John Byrne, Bury council leader, said: "All 48 local authorities making up SIGOMA have long been campaigning that multiple deprivation should be taken into account in arriving at the new local government funding formula.

"We also want other indicators, such as working families' credit to be considered. That would be particularly significant in Bury where, while we do not have high employment, we have a large number of people working in the service sector. Pay there has been traditionally low or part-time."

Coun Byrne added: "We are arguing for a fairer deal for all local authorities because we have been left out in the cold by the current structure which was created by a previous Government with very different priorities.

"So that we can provide and improve core services that include education, housing and social services, the new funding formula must be based on need."

SIGOMA believes the formula must take account of multiple deprivation, be realistic about the extra cost of services to certain councils, ensure people have the ability to pay, and address the consequences of decline.