Is it possible if you want to work with two people to do a phd at two unis?

I think so, once I saw advertised at jobs.ac.uk an AHRC scholarship for a PhD iat 2 unis at the same time, Reading and Royal Holloway. I don't know if at the end you would get a Reading or a University of London degree though.

Yeah but whats the sort of chance I mean would the research bodies laugh at it?

Do you mean have supervisors from different Unis? If so, then yes. This happens a lot in collaborative projects.

Yep and then apply to both unis for their funding?

No, the usual case is for the student to be registered at one uni (usually where the main supervisor is based). However, academics at other unis can be listed as official supervisors.

How are you fnnded?

I'm a post-doc...but I did my PhD as a Research Assistant so I was employed as a staff member of the Uni. I had supervisors at 2 different Unis though.

Is it hard to get money from research councils?

Unfortunately, it's not easy to get money from anyone! Applying for grant funding of any type is generally extremely competitive. Remember that students cannot apply directly to research councils - supervisors must apply for money for a specific PhD projects (student funding, project consumables).