Council tax unfair on rural areas

PEOPLE living in country areas of England pay more council tax than those in cities but receive fewer services for their money.

A report produced for a rural lobby group showed spending in less populated areas at 90% of the average although residents were paying between 2% and 3% more.

In contrast, people in inner London saw 40% more cash spent on services than the national level even though their council tax was just 82% to 86% of the average.

Lobby group Sparse, which represents some of the country's 50 most rural local authorities, argued the disparity was caused by the way the Government distributed grants.

Co-chairman Steve Pugsley said the system allowed urban councils to spend more than those in rural areas but charge less in council tax.

He said: 'We are calling on ministers to close the widening council tax gap between city areas and the countryside - as things stand, we are confronted by plain fiscal unfairness.

'The whole of the Government's rural strategy is severely undermined by the way in which country dwellers have to pay more to get fewer services.'

Sparse, which stands for Sparsity Partnership for Authorities delivering Rural Services, was today submitting its report, The Rural Council Tax Gap, to the independent inquiry into tax reform headed by Sir Michael Lyons.

Mr Pugsley, a district councillor in west Somerset, said the report showed the Government grant system failed to take account of the costs of providing services to scattered communities.