Local Government Finance: Rural Areas

Department for Levelling Up, Housing and Communities written question – answered on 15 September 2023.

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Photo of John Hayes John Hayes Conservative, South Holland and The Deepings

To ask the Secretary of State for Levelling Up, Housing and Communities, if he will review the application of the local government formula grant to rural counties.

Photo of Lee Rowley Lee Rowley Parliamentary Under Secretary of State (Department for Levelling Up, Housing and Communities)

We take into account the different needs and resources of councils, and account for cost differences in calculating allocations for local authorities. As part of the 2022/23 Local Government Finance Settlement, we increased the Rural Service Delivery Grant to £95 million in recognition of the unique pressures faced by the top 25% of most sparsely populated areas in the country.

In our policy statement on 12 December 2022, we recognised that now is the time for stability for councils. As such we have confirmed that we will not be proceeding with the Review of Relative Needs and Resources or Business Rates Reset during this spending review period.

The Government remains committed to improving the local government finance landscape in the next Parliament.

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