Rural communities - sixth report of session 2013-14, Vol. 1: Report, together with formal minutes, oral and written evidence (Paperback)

The current system of calculating the local government finance settlement is deeply unfair to rural areas in comparison with their urban counterparts. Rural communities pay more in council tax, receive less government grant and have access to fewer public services than people in large towns and cities. The extra cost of providing services to rural communities is evident across the public sector. Yet, in 2012-13 rural local authorities received less than half the per head funding that urban authorities got. In areas such as education the Government is reducing local authorities' flexibility to allocate extra funding to small rural schools with higher running costs. Rural businesses, schools and households have also fallen behind their urban counterparts when it comes to broadband access. Given the problems with the existing Rural Broadband Programme the Committee believes the GBP300 million from the BBC would be best used as a lever to encourage private and community sector capital and expertise. Almost 30% of England lacks 2G mobile coverage - this figure rises to nearly 70% for 3G services. On average people working in rural areas earn less than those working in urban areas but rural homes are more expensive than urban ones. According to Halifax rural house prices have risen 35% faster in the countryside than in urban areas over the last decade. Economic barriers also need to be overcome - including improving rural businesses' access to finance. The forthcoming Business Bank and the Single Local Growth Fund should be available to rural businesses as they are to their urban counterparts