Council taxpayers in the south of England could see their rates rise as the government seeks to send more money to the North, it was warned today.
Local Government Minister Jim McMahon this morning unveiled proposals to 'modernise' they system and send more than £2billion 'to the places and communities that need it most'.
Critics fear that this means that central government funding will be sent away from the South to poorer areas in the North and Midlands - with southern councils forced to make up the shortfall by increasing tax locally, or cut services.
One told the Times: 'There is no doubt at all that it is going to be polarising.
'For a lot of councils in richer parts of the country the current system works quite well for them and they're going to lose funding.
