Rural councils urge Chancellor John Healey to address £19bn growth gap in upcoming Budget
The County Councils Network warned that England’s rural areas have fallen £19 billion behind national growth and called on Chancellor John Healey to prioritize them in next week’s Budget.
Research commissioned by the County Councils Network and Grant Thornton UK found that from 2013 to 2023 England’s counties and rural districts grew 2.5 percentage points below the national average, representing a £19 billion shortfall. The study attributes the lag to poorer infrastructure, with 5G coverage as low as 24 percent in county areas compared with 95 percent in London, and public-transport trips taking about 40 minutes—70 percent longer than city journeys.
Ahead of Chancellor John Healey’s first Budget, the network is pressing for the creation of mayoral strategic authorities in rural regions, similar to those in Greater Manchester and the West Midlands, within six months of a mayor’s election. It cites the Fair Funding model’s projected 2 percent rise in spending power for rural councils by 2029-30 versus a 20 percent rise for urban neighbours. A government spokesperson noted a planned 21.1 percent increase in core spending power for rural areas from 2024/25 to 2028/29, with extra focus on the most deprived locales.
Why it matters
The rural-urban funding gap affects national productivity and could cost billions if not addressed in fiscal policy.
How the sides frame it
LOW AGREEMENTLeft-leaning coverage emphasizes personal financial advice and potential cost-of-living relief in the upcoming Budget, while right-leaning coverage highlights rural councils’ demand that the Chancellor address a £19 billion growth gap caused by infrastructure shortfalls.
LEFT
Focuses on household-level budgeting tips and possible relief measures in the Budget
RIGHT
Centers on rural councils urging the Chancellor to tackle a large growth gap linked to poor infrastructure
The left emphasises
- budgeting for a scheduled fuel-duty rise of 2p per litre
- shifting assets into a Stocks and Shares ISA if capital-gains allowance changes
- potential inheritance-tax changes and support for households facing higher energy costs
The right emphasises
- a £19 billion growth shortfall for counties and rural districts
- poor infrastructure such as low 5G coverage and longer public-transport trips
- calls for creating mayoral strategic authorities in rural areas
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