East Riding MPs Graham Stuart and Sir Greg Knight today welcomed the new proposals from the government on rural funding. In a statement to the House of Commons, Greg Clark, Secretary of State for Communities and Local Government, set out new measures to support rural councils during the transition to full business rates retention.
The Rural Services Delivery Grant will increase from £15.5 million this year to £80.5 million next year and ministers will also provide a £150 million a year transitional fund over the next two years, of which £32.7 million will go to rural areas.
Under the new proposals, the East Riding of Yorkshire will receive additional funding from central government of £2.15 million in 2016/17 and an extra £1.45 million in 2017/18 compared with the provisional settlement.
Sir Greg said today, “Services in rural areas are more expensive to deliver because of an older, sparser population.
“The Government’s provisional settlement, set out in December, would have reduced the overall amount of central government funding for rural councils”.
Sir Greg, the Member of Parliament for East Yorkshire and Patron of the Rural Fair Share Campaign, added: “I am pleased that the Government has decided to change its proposals so as to not widen the funding gap between urban and rural areas. I hope that the Government continues to listen carefully to the rural voice. It cannot be right that rural areas effectively subsidise higher government funding for urban councils.”