Rural areas being left behind by Andy Burnham's devolution plans, MPs warn

The new Prime Minister has made moving government from Whitehall to mayors and local authorities a key priority for his time in Downing Street.

He has announced plans for mayors to retain a portion of income tax and business rates, alongside greater control over areas like apprenticeships and water.

Mr Burnham and his Chancellor John Healey have said their ambition is to bring “growth to every postcode”.

However, a new report from the All-Party Parliamentary Group (APPG) for Rural Business and the Rural Powerhouse has warned that country and coastal communities risk missing out.

Analysis by the Rural Services Network of the latest local government finance settlement found that urban councils are set to receive almost a third more funding per head that rural councils.

Under the current Fair Funding model, rural councils are projected to see their spending power increase by just 2 per cent by 2029-30, compared with 20 per cent for their city neighbours.

This is despite the cost of services like school transport or social care costing far more in areas like North Yorkshire.

Labour’s York and North Yorkshire Mayor David Skaith, who represents the first mainly rural combined authority, contributed to the report.

He explained that his area’s transport settlement is about “one tenth” compared with some of the core city regions, despite the travel distances, sparse population and poor

connectivity.

Mr Skaith said there are “structural inequities in funding formulas that still fail to recognise rural cost pressures”.

Following the publication of the report, he told The Yorkshire Post: “For devolution to work everywhere, there can't be a one-size-fits-all model. We're determined to do things differently and lead the way, but we need backing.

"The Prime Minister understands this, and I hope this cross-party report will get the consideration it deserves as the white paper is produced.

"Mayors like me, who represent rural areas, need the powers, funding, and flexibility to ensure we’re at the heart of delivering growth in every postcode."

The report’s central recommendation is to make rural proofing a statutory requirement and a dedicated Rural Commissioner.

Labour previously committed to providing additional local government funding to rural councils, however after lobbying from MPs earlier this year committed an additional £440m to urban areas.

Gavin Lane, president of the Country Land and Business Association, who contributed to the report, said: “As devolution is rolled out, government must ensure the rural voice is heard, and communities are not left behind.

“As this report sets out, getting devolution right for rural areas is fundamental to closing the £22.5bn productivity gap, unlocking billions of pounds of economic growth and creating a thriving countryside.”

A spokeswoman for the Prime Minister told this paper he has a “strong priority for devolution right across the country to ensure growth in every postcode”.

She added: “We’ve set out a number of measures to ensure that in recent months and I would point to the Budget, which is upcoming, where the priority will be providing more breathing space,”