A Birmingham MP had demanded the Treasury hand over £100 million which he says it owes to the city.

Selly Oak MP Steve McCabe says the Government should reimburse Birmingham City Council after it changed the way local authorities are funded.

The money could help pay for cash-strapped social services or children's centres.

It follows a series of spending cuts imposed by Ministers since 2014.

First, the Government cut central funding by the same proportion for every council - without taking into account income from council tax.

But Ministers adopted a new approach in 2016/7, apparently admitting the old system was flawed.

And Mr McCabe said that the earlier error means that Birmingham has been deprived of £100 million that could have been spent on vital services.

He demanded the cash be repaid as he spoke in the House of Commons, warning that children’s services "have been damaged not only by cuts but by Government errors."

He said: "Birmingham, for example, has lost £100 million as a result of mistakes that the Government now acknowledge, and that is money that could be spent on children’s services and social care."

The MP said afterwards: "It’s bad enough that our services have been cut to ribbons by cuts which now prove to have been unnecessary as the Chancellor constantly revises his borrowing and deficit reduction targets but it’s a disgrace that Birmingham has lost out to the tune of an extra £100 million which should be spent on children and social care while, at the same time, the government is handing a further £5 billion to bankers rather than support essential services."

He added: "What they should be doing is closing existing tax loopholes and trying to recover some of the small fortune the tax payer has already spent on bailing out the banks."

Treasury Minister Andrew Jones told MPs: "This Government have taken more action to clamp down on tax evasion than any other Government. The 100 measures we have introduced since 2010 have raised more than £160 billion.

"The Government’s pledge is that we will continue to act in that way."