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:
03 Mar 2025
NAO Highlights Sustainability Crisis in Local Government Finances
A National Audit Office (NAO) report reveals critical sustainability issues in local government finances, driven by rising demands on essential services and delays in finance reform. Despite a 4% increase...
Read more11 Feb 2025
Local Government Finance Debate
A recent Local Government Finance Debate, overseen by Madam Deputy Speaker Caroline Nokes, offered a comprehensive platform to discuss the future of local government funding in England. Minister Jim McMahon...
Read more20 Jan 2025
Advocating for Fair Funding in Rural England
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,...
Read more02 Dec 2024
Local Government Funding Reforms Announced
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...
Read more09 Sep 2024
Local Government Funding
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...
Read more29 Jan 2024
Unpacking the Finance Settlement for local authorities and Its Impact on Rural Services
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...
Read more24 Jan 2024
Rural Services Delivery Grant Increases
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...
Read more16 Jan 2024
Help us campaign for Rural Fair Funding
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...
Read more16 Jan 2024
Provisional Settlement Response submitted
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...
Read more08 Jan 2024
Provisional settlement still unfair for rural
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...
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