By the Rural Services Network

The Rural Services Network (RSN) and 57 rural local authorities across England have united to advocate for fairer funding in the forthcoming Local Government Finance Settlement. Through a powerful joint letter to the Rt Hon Jim McMahon MP, rural councils have highlighted the pressing need for equitable resource allocation to sustain essential services and unlock the potential of rural communities.

The Rural Funding Disparity

For years, the Local Government Finance Settlement has highlighted a significant funding disparity between rural and urban areas. Urban councils benefit from 36% more per head in Government Funded Spending Power compared to their rural counterparts. To compensate, rural councils often resort to raising council tax, which is on average 20% higher per head in rural regions. This financial burden is further compounded by lower-than-average wages in these areas, stifling growth and economic development.

The Cost of Service Delivery

Rural councils face unique challenges, particularly the higher costs of delivering services across sparsely populated areas. This issue is exacerbated by the aging demographics of rural populations, which place greater demands on already stretched resources. With a one-year rollover settlement looming ahead of a comprehensive financial review in 2025, rural leaders stress the urgency of addressing these issues now.

Kerry Booth, Chief Executive of the Rural Services Network: "Rural councils face unique challenges that deserve recognition and support. The current funding model disproportionately disadvantages rural areas. By addressing this disparity, the Government has the opportunity not only to ensure essential services but also to stimulate growth and economic resilience in rural communities. Fair funding is essential to secure a future where rural residents can thrive."

Moving Forward

The RSN and its member authorities have committed to working collaboratively with the Government to ensure the specific needs of rural communities are acknowledged and addressed in future financial planning. The aim is to create a balanced approach that not only sustains services but also promotes growth and prosperity across rural England.

Read the full letter HERE