The Provisional Local Government Finance Settlement was released on 18th December setting out the funding for Councils for the financial year 2024 to 2025.

The consultation on the settlement runs until 15th January 2025, leaving councils little time to respond due to the Christmas and New Year break.

Despite representations from the Rural Services Network and rural MPs highlighting the unfairness of the current funding formula for rural councils, the settlement for 2024 to 2025 means that:

• Urban Councils will receive 37% MORE in Government Funded Spending Power (£142.09 per head)
• Rural Residents will have to pay 20% MORE in council tax per head

In times of reducing public expenditure, it is more, rather than less, important to distribute the available resources between different areas fairly.

It costs significantly more to deliver services across large rural areas.

Interestingly in 2023, the Government published a document entitled ‘Unleashing Rural Opportunity’.  With this settlement the result for rural areas will not be increased opportunity!

Wages earnt in the rural economy are lower than the national average, and yet rural residents are being penalised due to years of underfunding of rural councils.  In order to balance the books, council tax has been increased resulting in this incredible situation where rural residents are expected to pay 20% more than urban residents, often receiving less services, that are harder to access.

Whilst we welcome the provision of the Rural Services Delivery Grant in 2024 to 2025, and the recognition from Government of the additional cost pressures in rural areas, this is not available to all rural councils who face these additional costs.

The Rural Services Network is currently compiling its response to the Provisional Settlement consultation and will share this with member authorities so that they can also respond.  In addition we will be sharing with rural MPs of member authorities the figures from their local constituencies so that they can make representations to Ministers.

You can read the full settlement information at this link