William Eichler 17 February 2026

Finance settlement raises ‘serious concerns’ for rural areas

Finance settlement raises ‘serious concerns’ for rural areas image
© vectorfusionart / Shutterstock.com.

The body championing rural services warns the Government’s final local government finance settlement for 2026–27 to 2028–29 raises ‘serious concerns’ for rural communities.

The Rural Services Network’s (RSN) early analysis suggests rural residents may face around 17% higher council tax per head compared with urban areas, highlighting funding pressures on services in the countryside.

The RSN says the settlement’s funding formula still appears to favour urban authorities, with rural councils at risk of receiving disproportionately lower spending power, despite higher costs of delivering services across dispersed populations.

In 2026–27, urban councils are set to receive around 32% more per head than rural councils, while in 2028–29, Government-funded spending power for urban councils will have risen by around 20%, compared with just 2% for rural councils.

The RSN is urging ministers to clarify how the settlement will ensure fair funding for rural public services and prevent increased financial strain on rural taxpayers and councils.

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