Rural Local Authorities Unite to Demand Fair Funding in Upcoming Local Government Finance Settlement

Fifty-six local authorities across England, including Stratford-on-Avon District Council, have united with the Rural Services Network (RSN) to address the unique financial challenges they face and to advocate for equitable funding in the forthcoming Local Government Finance Settlement.

In a joint letter to the Rt Hon Jim McMahon MP, rural councils have come together to emphasise the need for fair resource allocation to sustain essential services in sparsely populated regions and unlock growth and prosperity in rural communities.

Historically, the Local Government Finance Settlement has resulted in funding disparities, with urban councils receiving 36% more per head in Government Funded Spending Power than their rural counterparts. This funding gap has compelled rural councils to increase council tax rates, leading to an average rate in rural areas that is 20% higher per head than in urban areas. These higher costs, combined with lower-than-average rural wages, create financial strains that limit the potential for growth and economic development in rural areas.

With a one-year rollover settlement anticipated before a comprehensive financial review in 2025, the RSN and participating local authorities are urging the Government to recognise the increased costs involved in delivering services across broad geographic areas. The letter highlights how the aging population in rural regions intensifies service demands, stressing already limited resources.

Kerry Booth, Chief Executive of the Rural Services Network, stated: "Rural councils face unique challenges that deserve recognition and support. The current funding model disproportionately disadvantages rural areas. By addressing this disparity, the Government has the opportunity not only to ensure essential services but also to stimulate growth and economic resilience in rural communities. Fair funding is essential to secure a future where rural residents can thrive."

The Rural Services Network stands ready to work with Government officials to ensure that rural community needs are understood and acknowledged in this settlement and considered in future financial planning to help unleash rural England's full potential. Read the full letter to government here.