Blackpool’s council leader today accused the Government of “madhouse” economics, after figures emerged which claim the resort is losing out massively due to changes in council tax support.
Research on behalf of a group of 45 local authorities has shown Blackpool has suffered cuts of more than eight per cent to that part of its budget raised through the council tax.
SIGOMA (special interest group of municipal authorities) says some towns are losing out more than others.
Council tax support allows councils to give discounts to the working age poor and pensioners, and was formerly administered as council tax benefit by the Department of Work and Pensions.
Since last year, councils have run localised schemes.
The Government said the changes would save around £410m, but the Local Government Associations estimates councils have actually lost around £1bn in funding up to April 2016.
Blackpool Council leader Coun Simon Blackburn said: “I sit on the executive committee of SIGOMA, and these statistics confirm what we have suspected for some time – that poor, northern, Labour areas are losing out massively to rich, southern, Conservative areas.
“It’s the economics of the madhouse, designed to shore-up Tory support in the south against the threat of UKIP – instead of focusing on the real issues of income and opportunity inequality, which affect the whole of the UK.”
SIGOMA wants the Government to find a more transparent way of funding the changes to council tax support.