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:

Hot Topics

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%...

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06 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...

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15 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...

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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...

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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...

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11 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...

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20 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,...

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02 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...

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09 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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