Disadvantaged: Rural Areas
The question
To ask the Secretary of State for Housing, Communities and Local Government, what steps she is taking to tackle pockets of deprivation in rural local authority areas.
Answered by Jim McMahon
The 2025-26 Local Government Finance Settlement begins to fix the foundations of local government by targeting additional funding to places with greatest need and demand for services (using deprivation as a proxy for this), and less ability to raise income locally, through a new Recovery Grant, worth £600 million. Through the Settlement, places with a significant rural population will on average receive almost a 6% increase in their Core Spending Power next year, which is a real terms increase.
Broader redistribution of funding will follow from 2026-27 and we are committed to fundamentally reforming how we assess need to ensure funding is distributed to where it is needed most. The government will use the best available evidence to assess differences in the need for local government services – including deprivation – and resources available to local authorities.
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