Andy Burnham has been accused of waging a “war on the countryside” after Labor unveiled council funding cuts that will see rural areas lose millions of pounds while urban authorities receive billions more. The Prime Minister’s new funding formula will strip £61million from councils in Britain’s shires and vales over the next three years, while urban areas are set to receive an additional £2.9billion.
The changes have sparked fury among local leaders, who warn that villages could be left without vital services as councils struggle to cope with rising inflation and soaring social care costs. One council chief warned that some villages could “die” as libraries, bus services and other amenities face the axe. The row comes after Labor was already accused of targeting the countryside through its inheritance tax changes affecting farmers.
Under the latest reforms, the government is diverting money away from more affluent local authorities towards poorer areas with cheaper properties and greater demand for social services.
But rural leaders argue that the changes fail to account for the higher cost of providing services across sparsely populated areas, where residents often live far from essential amenities.
An analysis by The Telegraph, based on Office for National Statistics figures, found rural councils would receive just 2p from the Government for every £1 increase in their costs.
By contrast, urban authorities would receive 42p for every £1 increase, according to the County Councils Network.
Steve Broadbent, Conservative leader of Buckinghamshire Council, which faces a £44.5million funding cut over three years, warned the changes could leave residents increasingly isolated.
He said: “I do think there’s an attack on rural Britain in the formula.”
Mr Broadbent warned that reduced bus services could leave people leading “much more isolated lives”, adding that children in rural areas were no less deserving of support than those in cities.
He said the growing demand for services was becoming unsustainable, with councils struggling to balance their budgets.
Jeff Brooks, Liberal Democrat leader of West Berkshire Council, which faces a £22million shortfall, said the changes felt like a “cash grab”.
He said: “It feels like the government is waging war on the countryside.”
The authority has seen its government grants cut by £4.5million, while the proportion of business rates it can retain will fall from 30% to 17%.
Mr. Brooks warned that public libraries could face cuts, while repairs to leisure centers and potholes could be delayed.
He added: “We have lots of villages and they could die because of the lack of services available to them and because people don’t want to move there.
“If a village that lost its post office years ago suddenly loses its council public library … the village shrinks to nothing.”
Jonathan Brooks, Liberal Democrat leader of Westmorland and Furness Council, said a £32million reduction in government funding over three years also felt like “an attack on rural Britain”.
He warned that services supporting communities in the Lake District and Yorkshire Dales were at risk.
Meanwhile, Steve Flitter, leader of Derbyshire Dales Council, urged Mr Burnham to “consult rural communities before making any rash decisions”.
Dan Thomas, leader of South Hams Council, described the changes as a “postcode tax”, warning that the new system risked making countryside living increasingly difficult.
He said: “No one disputes that some urban cities were left behind, but it’s gone too much the other way so now all the support has been taken away from rural communities.”
Mr Burnham has promised to deliver “good growth in every postcode”, with Labor arguing that funding should be directed towards areas with the greatest need.