A local authority in Greater Manchester claims it is being overcharged by �3m for waste disposal.

Stockport Council is threatening to end its contract with Greater Manchester Waste Disposal Authority (GMWDA) over the issue.

The council claims it is penalised by a policy to charge a flat rate per head for waste collection, because it creates less rubbish than the likes of Manchester city centre.

Leaders also argue the current charging structure provides no incentives for authorities to operate recycling schemes.

'Resolving problems'

Mark Hunter, leader of Stockport council, told BBC GMR: "There's an awful lot of waste created and there needs to be an incentive for people to recycle.

"At the moment the current system completely works against that.

"It just charges a flat rate per head of population and doesn't take into account any of the recycling that goes on in a borough like Stockport."

Councillor Neil Swannick, chair of GMWDA, agreed the system of charging is unacceptable.

He said: "When I took over as chair I made a commitment that we would try and resolve this point of contention."

He said a working group to tackle the issue was set up 18 months ago.

"And I have to say that the news just before Christmas was that we're now the closest we've ever been to resolving this situation."