Conditions in relatively deprived areas could deteriorate unless public spending is redirected to meet their needs, according to the government's neighbourhood renewal unit.

In a report on the impact of mainstream services on deprived neighbourhoods, the unit says that public spending per head is significantly higher in the most deprived 10 per cent of council wards than in the next 15 per cent and residents in the latter are losing out.

"Attention should also be paid to conditions in neighbourhoods which are less extreme but which contain many deprived people and are at risk of deterioration," it adds.

• Report from www.neighbourhood.gov.uk