The figures show the poorest councils in England have faced real-term cuts worth almost three times as much as the richest one
Councils in Greater Manchester have had their budgets cut by nearly a quarter over the last 14 years, according to new research. Across England, the poorest councils have faced real-term cuts worth almost three times as much as the richest local authorities, the research by a special interest group has revealed.
But less than a third of Manchester town hall's budget comes from council tax. Its Labour leader says the whole council tax system is 'fundamentally unfair' because poorer areas like Manchester cannot collect as much money from it. Barnsley council's Labour leader Stephen Houghton who chairs the SIGOMA - a group which all councils in Greater Manchester belongs to - said the current funding model tends to reward areas with high-value housing and thriving businesses. Sir Stephen said that this has resulted in an increased disparity between the wealthiest areas of England which rely less on grant funding and can raise more from council tax, business rates and other funding sources.
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