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Finance
Our work on Local Government Finance is split into two areas, the Fairer Funding campaign and a financial analysis of local authority budgets.
Fairer Funding
- SPARSE Rural as an organisation defends the rural interest and the Sparsity Allowance in the Local Government funding formulae.
- We consider the formula funding to be woefully inadequate. It goes nowhere near to meeting the higher costs of operating essential services in rural areas.
Did you know that:
- Spending Power per head is £99 less in rural areas than in urban areas … yet …
- Council Tax is £79 higher per head in rural areas than in urban areas … this is because …
- Formula Grant is £178 lower per head in rural areas than urban areas.
Put simply, rural communities are paying more for less provision in their local areas.
Rural Fair Share Group
The Rural Fair Share Group is a grouping of parliamentarians who have come together to argue for fairer funding for services across rural England. The Secretary of the Group is Graham Stuart MP.
Click here to view a presentation on Spending Power Analysis from March 2013 comparing Rural and Urban areas.
Click here to see the Governments Pledge on Rural Services
Local Government Finance Settlement
Below is an analysis provided to local authorities and rural MPs in January 2014 which illustrates the current rural to urban divide in the financial settlement 2014:
- Local Government Finance Settlement Analysis
Future areas of work:
- Early Review of Localisation of Business Rates
Financial Analysis
We provide a range of analysis for local authorities, considering their individual RA position (revenue estimate) and RO position (Revenue Outturn) compared with other authorities and groups of authorities:
Last week the Government published the policy statement for Local Government Finance 2025-2026. This included outline details of the headline allocations through the Provisional Settlement for Local Government for which a consultation will be launched in December ahead of the...
The Minister of State for Housing, Communities and Local Government, Jim McMahon MP has emphasised the direction of the new Government confirming they will “Provide more stability for councils through multi-year funding settlements, ending the competitive bidding process and reforming...
Last week, The Rt Hon Michael Gove announced an encouraging boost for rural communities: a £15 million increase in the Rural Services Delivery Grant for 2024-25. This raises the total to £110 million, a significant uplift that the Rural Services...
The Rt Hon Michael Gove has today (24th Jan) through written statement announced that he proposes to increase the Rural Services Delivery Grant by £15million for 2024/2025 resulting in a total of £110 Million. The Rural Services...
The Rural Services Network is the national voice for rural areas, campaigning on our members behalf for a fairer deal for rural communities. The consultation on the way that Government allocates funding for rural councils closed yesterday. However, you...
The Rural Services Network has yesterday submitted its response to the Provisional Local Government Finance Settlement consultation. This followed a meeting of local authority Leaders, Senior Councillors and Senior Finance Officers in SPARSE membership of the Rural Services Network, those...
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...
As the government starts work on the Provisional Local Government Funding Settlement for 2024/25, due for release in December, RSN Chief Executive Kerry Booth has written to the Secretary of State for Levelling Up, Housing and Communities, the Rt Hon...
Under the Provisional Settlement proposals, the gap in funding between rural and urban areas will, in fact increase. There is therefore a continuation of historic underfunding and unfairness for rural communities. Once again, through the proposals, rural residents, communities,...
The Government published the provisional local government finance settlement for 2022-23 on 16 December 2021 A more detailed review of the proposals by the RSN’s local government finance consultants (Pixel Financial Management) will be sent to members as...
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HOT TOPICS
Amid reduced public spending, fair resource allocation across regions is crucial. Despite a population larger than Greater London, rural areas receive significantly less funding for essential services, even though delivering these services in rural areas is more expensive.
Economic growth is widely acknowledged as essential for national wealth and prosperity and is a priority for political parties. Rural economies, employing millions and home to a higher proportion of small businesses, have potential for growth if barriers are removed.
Rural residents face distinct healthcare challenges, including limited access to transport, longer distances to medical facilities, an aging demographic, housing inadequacies, digital connectivity gaps, and difficulties recruiting health and care workers.
Rural communities are grappling with a severe affordable housing crisis, marked by high house prices, a lack of affordable housing, elevated living costs, and lower incomes, threatening their sustainability and vitality.
Transport is vital for the quality of life and economic health of rural areas, yet it faces challenges such as infrequent public bus services and less Government funding compared to urban regions.
Rural areas, encompassing a substantial portion of England's population and land, play a pivotal role in combating climate change and achieving the net zero target.
In an increasingly digital world, the lack of robust digital infrastructure in rural areas severely limits access to crucial services and stifles economic growth.
A future-focused vision for rural communities involves not just building the right homes in the right places but also ensuring thriving, sustainable communities.
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