Cost of rural services under scrutiny

The government has agreed to re-examine the additional cost of delivering public services to rural communities.



A joint project to review evidence for the additional unavoidable costs of rural service delivery is expected be undertaken out this summer.


It is due to be carried out by the Department for Environment, Food and Rural Affairs (Defra) and the Department for Communities and Local Government (DCLG).


The research will review the evidence for costs and cost drivers for rural service delivery and attribute the unit costs of local authority services as accurately as possible.


It will also seek to determine the differences between rural and non-rural costs – as well as any unavoidable costs for rural areas, which are additional to those for non-rural areas.


Tender documents for the research are currently available for tender on the DCLG website. It is anticipated that the study will take place from June to September 2014.


It follows calls by the Rural Services Network and the Rural Fair Share Campaign for the government to re-examine the perceived higher costs of rural service delivery.


The issue has been prominent in representations by both groups regarding the government's provisional 2014-15 Local Government Finance Settlement.


It has also been the issue of a subsequent House of Commons Select Committee hearing, where MPs pressed for fairer funding for rural local authorities.


Further information about the latest research and the methodology to be adopted by the joint review is expected to be made available once a contractor is chosen.

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