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In a North Yorkshire County Council budget consultation meeting, Cllr Dadd described the outrage at the disparity as a ‘rural revolution’.
Accountants say the owners of million pound homes in London can pay less council tax than people living in an average semi-detached house in North Yorkshire because the value of the housing market has risen faster in London and there has not been a revaluation since 1991, so the council tax system feels out of sync.
In addition, rural councils such as North Yorkshire point to how London boroughs can generate huge amounts of funding through car park charges which is not an option for many rural areas.
The Rural Services Network represents rural local authorities and is campaigning for fairer funding for rural areas. Currently urban areas receive some 62% (£109) more per head in Settlement Funding Assessment grant when compared to their rural counterparts Rural residents pay, on average, 22.7% (£105) per head more in Council Tax than their urban counterparts due to receiving less government grant. Rural residents also fund 68% of their Local Government Spending Power through Council Tax compared with urban residents who fund theirs by 55% Therefore rural residents pay more, receive fewer services and, on average, earn less than those in urban areas and that is inequitable.
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