HUDDERSFIELD MP Barry Sheerman is fighting to get more cash for the town.
He is lobbying with other politicians for a greater slice of Government money to be given to Kirklees Council.
Councils in England and Wales face an estimated £800m shortfall next year.
And the Local Government Association, which represents them, fears council tax payers will have to foot the entire bill.
The average council tax bill rose by four times the rate of inflation this year. Kirklees leaders have already warned that next year's rise could be at least another 6.5%.
An average home in England is now paying £908 in council tax - an increase of about 60% since Labour came to power.
And in Devon and Cornwall the police authority warned of civil unrest this summer unless there was action to ease the burden of council tax rises.
Speaking about the problem, Mr Sheerman said he was taking action, together with Kirklees Council's Labour group leader Clr Mehboob Khan.
He said: "I have been in close contact with Mehboob about this.
"The Labour group has been pushing for extra resources for Kirklees for some time."
LGA chairman Sir Jeremy Beecham outlined the problem, saying: "The perverse effects of the funding system means that shortfalls have exaggerated consequences for authorities and council tax payers.
"The problem for this coming year is the perception that council tax levels have already reached the heights of acceptability - but most councils have nowhere else to raise income."
Sir Jeremy suggested that the Government should plug the cash gap.