Herefordshire Council highlights critical funding disparity in recent local government finance settlement

Herefordshire Council stands firmly alongside the Rural Services Network (RSN) in challenging the recent provisional local government finance settlement, which significantly disadvantages rural communities like ours. The settlement unfairly favours urban areas, neglecting the unique needs and higher operational costs of rural local authorities. Supported by detailed analysis from the RSN, we identify a critical funding disparity where Government Funded Spending Power in urban areas is 41 % higher than it is in predominantly rural areas.

Key Insights from RSN and Herefordshire Council’s analysis:

  • The complete removal of the Rural Services Delivery Grant, previously essential for sustaining rural services, has significantly impacted our funding. This funding was worth £7 million to Herefordshire Council in 2024/25.
    This grant has been repurposed into the new Recovery Grant.
  • The new £600m Recovery Grant heavily favours urban locales who receive over 7 times more of this grant than predominantly rural areas.
  • On average, residents living in predominantly rural areas will pay 20% more in council tax than residents living in predominantly urban areas.
  • The amount of money Herefordshire Council has to spend per head of population that is government funded will reduce by 3.14% in 2025/26, compared to an average increase of 8.21% in predominantly urban areas.
  • The proportion of funding money Herefordshire Council has to spend per head of population that is government funded in 2025/26 is 36%, compared to an average of 44% across all upper tier councils.

Councillor Peter Stoddart, Herefordshire Council Cabinet Member Finance and Corporate Services, said:

“We have been clear in our response to the government’s provisional settlement, and throughout the current budget setting process for 2025/26, that the changes to government funding, and the current allocation distribution, unfairly favours urban over rural areas.

“As a result, we have had to take the extremely difficult decision to increase council tax for our residents by more than we had originally planned, to fill the funding gap to ensure we can continue to provide vital services to our local communities.

“We urge the government to reconsider its approach to the funding distribution and to engage with all rural local authorities to understand the profound impact of these decisions.”

Cllr Roger Phillips, Chair of the Rural Services Network, added:

 “The RSN’s commitment to rightful service provision remains unwavering, yet this settlement undermines the ability of rural local authorities to meet the needs of their residents. The data speaks volumes about the disparities that risk widening the urban-rural divide further—something we are determined to avoid. Rural areas are not asking for more than their fair share; they are demanding a fair chance to serve their communities adequately. It is crucial that the government recognises the inequity embedded in this settlement and rectifies the funding model to support all constituents equally. We seek fairness, not favouritism.”

Kerry Booth, Chief Executive, Rural Services Network, said:

“As Chief Executive of the Rural Services Network, I am deeply concerned about the implications of the recent government finance settlement on our rural communities. The persistent underfunding of rural areas not only challenges the sustainability of essential services but also neglects the fundamental principle of equity in public funding. Recent research commissioned by the Rural Coalition stresses the vast economic potential of rural England, which could contribute an additional £9 to £19 billion annually in tax revenues. This clearly shows that rural areas are not just scenic backdrops but are vibrant economic hubs critical to our national prosperity.

It is imperative that the government reconsiders its approach and ensures that funding allocations genuinely reflect the needs and challenges of all areas, urban and rural alike. Rural communities are integral to our nation’s growth strategy. Together, with a unified voice, we must advocate for a settlement that truly understands and addresses the unique circumstances of rural England, harnessing their full potential to enhance the quality of life and economic well-being across the country.”

Published: 24th January 2025

Council starts process to find next provider of public realm services

Providers of public realm services are being invited to tender for a major new contract to deliver ‘fit for the future’ services for Herefordshire

Public realm services are vital to local residents, businesses and communities as they include the maintenance of roads, roadsides, green areas and public spaces, street cleaning, highway drainage, street lighting and highway winter safety services. They help ensure the spaces where we live, work and travel are safe and clean.

The council’s vision is that all of these essential services are ‘fit for the future’ – that embrace technology, automation and digital innovation, that support a transition to electric plant, vehicles and new materials for carbon reduction, that continually improve through investment in developments and people, and that maximise opportunities and resources.

To meet this vision, the council has started the process of finding the next provider of public realm services with a view to securing a new contractor from 1 June 2026.

Councillor Harry Bramer, Cabinet Member for Community Services and Assets said: “The transformation of all of our services to ensure they embrace best practice, deliver innovation and demonstrate value for money is an integral part of our Council Plan.

“To have the best possible public realm services is essential for all of our residents and businesses. We need to appoint the best possible provider to work with us over at least the next seven to ten years, to deliver the best for our communities, keeping our roads and public spaces well maintained, safe and clean.

“In the tender documentation for this major new contract, we’ve clearly set out what we expect from our next public realm services partner. Through pre-testing with the market we are confident that there are providers of high quality services willing to submit a tender, and we look forward to finding out more about how they can support.us to provide high quality services for Herefordshire that are fit for the future.”

A Cabinet decision on the chosen public realm service provider is expected to be made in November 2025. The current contract with BBLP living places ends on 31 May 2026, and the new contract will start on 1 June 2026.

Announcement regarding the death of the former Chairman of the Association of the Lord-Lieutenants and former Lord-Lieutenant of Herefordshire, Sir Thomas Dunne, KG, KCVO.

It is with deep sadness that we share the news of the death of Sir Thomas Dunne KG, KCVO on Monday 6 January.

Sir Thomas Dunne was the Chairman of the Association of the Lord-Lieutenants. He served as Her Majesty’s Lord Lieutenant of Hereford and Worcester from 1977, and then from 1998 he became the Lord Lieutenant of both Herefordshire and Worcestershire after the two counties were restored. He retired from the latter role in 2001 but continued his duties as the Lord-Lieutenant of Herefordshire until 2008.

In 2001 he became Chairman of the newly formed Cathedral Council from its first meeting. During his time as Chairman he oversaw an increase in the number of Cathedral prebendaries as just one of his many achievements.

In 1995 he was knighted as a Knight Commander of the Royal Victorian Order, and then in 2008 he was made Knight Companion of the Order of the Garter.

His Majesty’s Lord-Lieutenant of Herefordshire, Edward Harley CBE, said:

“I am saddened to hear the news about Sir Thomas Dunne. As His Majesty’s Lord-Lieutenant of Herefordshire I would like to pay tribute to his remarkable tenure as Lord-Lieutenant for over thirty years. During that time, he worked selflessly to represent Her Majesty and to enhance the lives of so many across the counties of both Herefordshire and Worcestershire. He was respected by everyone who knew him, and my deepest sympathies are with his family, friends and all those who encountered him.”

Chairman of Herefordshire Council, Councillor Roger Phillips, added:

“Sir Thomas brought great dignity and commitment to public service over many decades, encouraging the military, judiciary, business and community sectors in our county. He combined respect for the position he held with a practical approach and great sense of humour.”

Flags at Herefordshire Council buildings have been lowered to half-mast in respect. They will remain at half-mast for the next seven days.

In response to the proposal to lower flags Lady Dunne, commented:

“I am deeply touched by this remarkable gesture to honour my dear husband. He lived and breathed Herefordshire, the county he loved. He would be very humbled by this response. All our family are so grateful for the affection in which he was held by so many Herefordshire people.”

There will be a service of thanksgiving in due course. For details please contact: thomasdunneservice@gmail.com