The Government is looking at reforming the Funding of Councils from just Council Tax and Business rates..
The Rural Sparse Network and have long argued that the Government’s approach to funding rural areas is unfair and has historically put rural Local Authorities at a disadvantage due to receiving significantly lower government grant.
Rural local authorities received 45% less government grant per head of population in the current financial year (2017/18) than their urban counterparts – this gap in funding is due to grow even wider under the current four year finance settlement; indeed it is becoming a chasm.
Moreover, in 2017/18 Council Tax is on average £87 per head of population higher in rural areas compared to urban areas – that gap too will grow over the period to 1920/21 under current plans.it can not be right that homes that are worth more than a million pounds in central London pay less council tax than someone in my ward in a three bedroom modest residence.
Rural areas have a higher percentage of older people resident in their areas, often living in social isolation, which increases demands on services. The brunt of this burden falls on Adult Social Care Services the funding of which is acknowledged to be in crisis. We have more miles of highways and higher costs to deliver services due to the distances that have to be covered.