Labour Accused of Punishing Rural England with Unequal Children's Services Funding

New analysis indicates that town and city councils in England are receiving three times more government funding for children's services than rural and shire authorities, leading to accusations that the Labour government is unfairly penalizing rural areas.

The analysis, conducted by Pixel Financial Management for the County Councils Network, found that the average metropolitan borough council receives £1,011 per child for these services, while inner London boroughs get £912. In stark contrast, central government grants for county and rural unitary authorities average just £339 per child. The disparity is extreme in some cases, with Tower Hamlets in east London receiving £1,806 per child, which is 25 times more than Surrey's £73 per child.

These significant differences are attributed to reforms initiated by Communities Secretary Angela Rayner, aimed at reallocating government grants to town halls across England. Proponents of the reforms, referred to as the Fair Funding Review, state that they are designed to end a postcode lottery in local government funding and direct more resources to deprived areas.

However, leaders of county councils argue that they face increasing demands for children's services, with nearly 31,000 children currently in care in county and rural areas. They also contend that the government was mistaken to remove 'remoteness' as a factor in funding calculations, as delivering services to scattered villages and distant communities incurs higher costs.

Cllr Steven Broadbent, Finance Spokesperson for the County Councils Network, stated, "A child in need in a rural and county area is no less deserving than a child in a metropolitan city area." He added that rising costs and the number of children in care in rural areas over the past decade have forced these councils to shift resources from preventative measures to crisis intervention. He further noted that the government's redistribution of funds from counties to urban areas has exacerbated the situation, leaving rural councils with less funding during a period of significant system reform, even as the number of children requiring services continues to grow rapidly.

These findings follow previous accusations that the Labour government has disproportionately cut funding for councils not controlled by Labour, while increasing funding for Labour-led town halls. Shadow Communities Secretary Katie Lam described the Fair Funding Review as "spiteful and politically motivated," suggesting Labour is diverting funds from vulnerable children in rural areas to benefit its own councils. She highlighted the higher costs associated with delivering services in rural areas, including longer travel times for social workers, scarcer placements, and children being sent far from home due to a lack of local options.

A spokesperson for the Ministry of Housing, Communities and Local Government defended the figures, asserting that they do not account for additional funding that councils can raise through council tax. The ministry stated that it is targeting funding to areas with the greatest need, providing more funds on average to the most deprived rural areas. They also emphasized their commitment to transforming children's social care with the Families First Partnership programme, backed by nearly £3 billion in investment over four years. They acknowledged that rural councils face pressures supporting children and families, but maintained that the reported figures represent only government grant funding and not the total funding available to councils for local services, including council tax revenue.