The Rural Services Network (RSN) continues to express deep concern over the significant disparities highlighted in the latest local government finance settlement. The funding allocations continue to disadvantage rural communities, where residents already face higher costs and reduced services compared to their urban counterparts.

Key figures from RSN’s analysis reveal the stark inequality:

• Residents in predominantly rural areas pay 20% more in council tax on average than those in urban areas.
• Government-funded spending power in urban areas is 41% higher than in predominantly rural areas.

Commenting on the settlement, RSN Chair Cllr Roger Phillips states:

“The data speaks volumes about the disparities that risk widening the urban-rural divide further—something we are determined to avoid. Rural areas are not asking for more than their fair share; they are demanding a fair chance to serve their communities adequately. We seek fairness, not favouritism.”

RSN Chief Executive Kerry Booth also emphasises the long-term implications:

“The persistent underfunding of rural areas challenges the sustainability of essential services and neglects the principle of equity in public funding. Rural England’s economic potential is vast and untapped, contributing significantly to our nation’s prosperity. It is imperative that funding allocations genuinely reflect the needs of rural communities.”

Of particular concern is the removal of the Rural Services Delivery Grant, replaced by the new Recovery Grant. However, urban areas benefit disproportionately from this grant, receiving over seven times more funding than their rural counterparts.

Preparing for the Second Consultation on Local Funding Reform

Looking ahead, RSN is now preparing its response to the second consultation on local funding reform, which remains open until 12 February 2025. This consultation offers another vital platform to address the systemic issues in funding allocation. We have previously discussed the stark funding inequities and the pressing need for reform to support the sustainability of rural communities.

The RSN is calling on the government to address these disparities and engage with rural authorities to ensure equitable funding. The current settlement risks exacerbating challenges for rural councils and their residents. Together, the RSN and its members will continue to advocate for fairness in funding to enable rural communities to thrive.