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:
13 Jan 2026
RSN Voices Serious Concerns Over ‘Fairness’ Of Settlement
The Rural Services Network has serious concerns over the new ‘fair and transparent’ Local Government Funding formula. Our analysis shows that in 2026-2027, the most urban councils will receive 41%...
Read more06 Jan 2026
Provisional Local Government Finance Settlement 2026/27
The Government has published the provisional local government finance settlement for 2026/27, outlining planned funding allocations for local authorities in England and launching a statutory consultation on its proposals. While...
Read more15 Dec 2025
Local Government Finance Settlement Due
Local Authorities across the country are waiting for the Provisional local Government Finance Settlement, due to be published this week. This will be the first settlement following changes made to...
Read more10 Nov 2025
Government Publishes New Financial Inclusion Strategy
The Government has published a new Financial Inclusion Strategy, setting out an ambitious cross-sector plan to ensure everyone can access and effectively use financial services, from opening a bank account...
Read more10 Mar 2025
LGIU Report Highlights Pressing Concerns for Local Government Finances
A recent report by the Local Government Information Unit (LGIU) has painted a stark picture of the financial pressures facing local councils in England. The LGIU’s 12th annual “State of...
Read more03 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...
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