Rural areas 'robbed over council tax'

RURAL areas are faring worst from soaring council tax bills, a group of local authorities have claimed. They are calling on the Government to end the 'injustice' in the system, saying those living in the country pay more than those in towns but get poorer services.

Council tax bills have risen by 70% on average since Labour came to power in 1997. But some rural areas - particularly in the South and South-West of England - have seen increases of 80%.

The local government lobby group Sparse says that while bills have gone up on average 3% more in rural areas, council spending is around 10% less.

It is calling on Deputy Prime Minister John Prescott to recognise the extra costs of providing public services for rural communities.

Graham Biggs, spokesman for Sparse, which includes more than 50 councils, said: 'We need new thinking to help address the needs of rural communities if they are to avoid becoming depopulated or mere dormitories.

'We want ministers and opposition parties to take a serious look at how to make the funding formula fair to rural councils so it reflects spending needs away from the urban centres of population.'

The report calls for more affordable housing and an end to the council house right-to-buy scheme in areas where there is pressure on social housing. It says providers of vital services such as libraries, police and banks should get some form of tax relief, possibly through road tax exemptions for key workers.

A spokesman for the Office of the Deputy Prime Minister said council tax was set by local authorities, not by the Government. 'There is no excuse for excessive council tax increases in any area,' he added. 'This year, every council received a grant increase in line with or above inflation - in all, local government funding has risen by 33% since 1997.'

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