The abolition of the Rural Services Delivery Grant (RSDG) in 2025-26 will mean a loss of £110 million for rural councils.
The Rural Service Delivery Grant was established in 2013 under the Conservatives to provide un-ringfenced funding to rural councils in England, recognising the additional costs associated with delivering services in sparsely populated areas.
In the 2024-25 financial year, the grant was increased by £15 million, bringing the total allocation to £110 million but from 2025-26 will redirect to areas with ‘greater needs and demands for services’. (Rural Service Network)
Rural councils have utilised the RSDG to support various services, including:
• Transport: Maintaining bus services in areas with low population density.
• Social Care: Providing care services to dispersed and aging populations.
• Infrastructure: Upkeeping extensive rural road networks.
• Community Services: Supporting libraries, community centres, and local
initiatives across large geographical areas.
Labour’s decision to cancel the RSDG from the 2025-26 financial year is expected to
have significant impacts on rural councils:
• Financial Shortfall: Councils will lose a combined total of £110 million in
funding, potentially leading to budget deficits.
• Service Reductions: Without this funding, councils may need to cut or reduce
services, adversely affecting rural communities.
• Council Tax Increases: To compensate councils will increase council tax,
placing additional financial burdens on residents who already face higher living
costs and lower wages compared to urban areas.
The human cost
• The Rural Services Network has suggested that the average cost of delivering
public services in rural areas is 20-25% higher than in urban area.
• A community health nurse working in North Norfolk recounted driving 40 miles
between patients on average.
• The County of Devon, which receives £10 million a year from the RSDG has the
largest road network in the country.
Rural communities already lag behind urban areas on key performance indicators like
service quality, availability and on human factors like social mobility and life
expectancy.
The CRF is calling for the maintenance of the same level of funding for rural councils,
and transparency so Labour does not funnel money to its target seats and councils.
More info www.ConservativeRuralForum.org.uk
[email protected]
