Shropshire rural taxpayers pay more but get less

COUNCIL TAX payers in rural areas are being charged more than people living in cities – but getting less in return.

Experts say Shropshire Council receives £408 per head of population from the Government, 20 per cent less than the English average of £491. Telford & Wrekin Council gets £558, far less than the highest funded authority of Hackney, in London, which gets £1,194.

Graham Biggs, chief executive of The Rural Services Network and former chief executive of South Shropshire District Council, said the chief concern of the RSN was the large difference in funding between many areas of the country.

"We will always accept more grants will go to urban areas. But the gap in funding is simply far too big," he said.

"There are extra costs in rural areas in providing basic services. For example, waste collection and recycling costs between 123 and 224 per cent more in sparsely populated areas than urban areas."

The study also found that council tax per head is almost 21 per cent higher in predominantly rural authorities than their more urban counterparts.

The RSN report warned the disparities in the current system may become "locked in" for up to a decade if proposals out for consultation relating to business rates retention are approved by the Government.

The figures were revealed after the network asked independent consultancy Local Government Futures to compare government funding for rural communities with urban areas.

A government spokesman said: "The local government settlement is fair between different parts of the country."

By Chris Burn