Tory party leadership contender Rishi Sunak proudly told party members he had been working to divert funding from "deprived urban areas" towards prosperous towns.
The former British chancellor bragged that he had started changing public funding formulas to ensure more prosperous towns receive "the funding they deserve".
The New Statesman magazine, which obtained video revealing Mr Sunak's remarks, said they were made to grassroots Tories in Royal Tunbridge Wells, Kent, on 29 July.
Labour said it was "scandalous" that Mr Sunak was "openly boasting that he fixed the rules to funnel taxpayers' money to rich Tory shires".
In the video, Mr Sunak told Tory supporters: "I managed to start changing the funding formulas, to make sure areas like this are getting the funding they deserve because we inherited a bunch of formulas from Labour that shoved all the funding into deprived urban areas and that needed to be undone.
"I started the work of undoing that."
The remarks from last week came as Mr Sunak tries to make up ground against Foreign Secretary Liz Truss to win the backing of party members who will choose the next British Prime Minister.
"This is scandalous," said Labour's shadow levelling up secretary Lisa Nandy.
"Rishi Sunak is openly boasting that he fixed the rules to funnel taxpayers' money to rich Tory shires.
"This is our money. It should be spent fairly and where it's most needed - not used as a bribe to Tory members.
"Talk about showing your true colours."
Mr Sunak's campaign is yet to comment on the video.