Wakerfield Council leader Peter Box says Government plans to change the way council are funded mean the authority will lose an extra £12.2m in funding over the next two years.
Coun Box says the changes are on top of £41m in cuts the authority already faces.
He said councils currently collect business rates locally, but pay the income into a pool which is then redistributed back to councils by the Government through a formula based Grant.
From April 2013, councils will retain a proportion of the business rates income which they collect locally and receive a smaller amount of grant funding through a Revenue Support Grant.
The Government plans a further council tax freeze in 2013/14. However, the grant to be offered to councils who agree to freeze council tax in 2013/14 will only be the equivalent of a one percent increase in council tax. In the previous two financial years, when a freeze grant has been offered, it has been worth the equivalent of a two-and-a-half council tax increase. Coun Box said: “This is fundamentally unacceptable and unreasonable. Not only is this Government yet again making further cuts to the money we need to provide essential and major public services, but it is not giving us any time to make the plans to deal with this.”
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