The funding, known as the Rural Services Grant (RSG), was introduced in 2016/17 to support councils who serve rural communities and sparsely populated areas where it costs significant amounts of money to deliver public services. Suffolk County Council will, from April 2024, no longer receive the grant. The government announced last week that the funding will be redirected elsewhere – adversely impacting rural areas like Suffolk.
Cllr Richard Smith MVO, Suffolk County Council’s deputy leader and cabinet member for finance, economic development and skills, said:
“It is deeply disappointing that the government has once again made a decision that disproportionately harms rural areas.
“Delivering essential services, like bus services, social care and road maintenance, is inherently more expensive in county areas like Suffolk due to our sparse population. The decision to scrap this grant compounds the challenges we are facing already with the rising costs of services like adult and children’s care and home-to-school transport.
“Yet the government continues to overlook these realities, prioritising urban areas instead.
“It is becoming clear that any additional funding promised to support local authorities is to be undermined by cuts and additional costs elsewhere. This is a troubling pattern where supposed solutions offer no real relief and councils are faced with great financial uncertainty.
“I am concerned that the government's response to rising local government costs is to shift the burden onto residents, forcing councils to impose steep Council Tax increases to balance the books. This approach is both unsustainable and unfair to those in rural communities.”
Nationally, the Rural Services Grant is worth £110 million a year to rural communities. Other counties, including Lincolnshire, Oxfordshire and Northumberland have also spoken out about the removal of the rural grant.