The East Midlands has recorded the second-lowest amount of public spending funding from central government.
The area receives 11 per cent less public sector funding than average per region, according to the Office for National Statistics.
According to the Institute for Government, central government spends approximately £850 billion each year on providing public services, social security payments and capital projects.
Yet the East Midlands is lowest on the list of the government’s funding priorities, forcing local councils to raise revenue in other ways.
The region’s biggest county, Nottinghamshire, boasts some of the highest council tax rates in the country as it seeks to plug the funding gap.
A band D property in Nottingham City pays £2,118.99 in council tax, whereas a band D property in Bromsgrove District Council in the West Midlands pays over £300 less.
The East Midlands also has a high unemployment rate, which at 5.7 per cent is 0.7 per cent higher than the UK average.
The region also has the second-lowest level of public sector employment in England, data shows.
Alex Norris, MP for Nottingham, said: “A sustained lack of investment in the East Midlands has led to a weaker economy, reduced living standards and restricted opportunities.
“This Government has shown no interest in our community.
“They now say they want to level up the UK.
“This must start with significant investment in crucial East Midlands projects like HS2, the development of the power station site and improvements to access to our airport.”
The East Midlands is set to benefit from HS2 in the next decade.
It also has two power stations left in contention to become world’s first prototype fusion energy plant.