Former Conservative MP and Deputy Council Leader, Mark Jenkinson, has expressed deep concern over a recent Labour Government announcement to abolish the Rural Services Delivery Grant (RSDG) from the 2025-26 financial year. The RSDG has been a lifeline for rural councils, helping them manage the higher costs of delivering essential services in sparsely populated areas.
This year Cumberland Council, Westmorland and Furness Council and Cumbria’s Police, Fire and Crime Commissioner received more than £10m combined from the grant, and fears are growing that the shortfall will now be moved onto residents’ council tax bills.
Abolition of the grant comes on the back of the back of questions over the future of the multi-
year ‘Network North’ funding allocated to Cumbrian councils last year, which saw Cumberland council allocated an additional £149m for local transport priorities and £130m for road surfacing, while Westmorland and Furness council was allocated £129m for local transport priorities and £157m for road surfacing.
Cumbria was also set to benefit from upgrades to the Cumbria Coast railway line, estimated to be worth £180-400m, but the project was thrown into disarray on the back of the budget and the government withdrawing support for the West Cumbria Mining project, on which the business case put great weight.
The budget also saw a huge National Insurance hike for the councils, and all of the companies that support them. While some of the hike will be covered through government from general taxation, much of it will again fall onto the shoulders of residents and local businesses.
"The decision to scrap this vital funding risks leaving rural communities out in the cold," said Mark. "Rural councils face unique challenges that urban areas simply don’t, from maintaining extensive road networks to supporting aging populations in isolated areas. The Rural Services Delivery Grant was recognition of these extra costs, and its removal is a step backwards for fairness and equity."
“During the election, Keir Starmer promised voters that council tax would not increase, yet now Cumbrians are about to see record increases again.”
The RSDG provided £105 million to rural councils in 2024-25 to fund services such as public transport, social care, and road maintenance. Its abolition could result in budget shortfalls, forcing councils to cut services or increase council tax, placing additional burdens on rural residents who already face higher living costs.
Mark continued: "Rural communities are the backbone of our nation, yet they are often overlooked. This decision risks widening the gap between rural and urban areas, leaving rural residents paying more for less. I am calling on the Government to reconsider and ensure that rural councils are properly supported."
Mark has pledged to work with local councils, rural advocacy groups, and Conservative colleagues to press for a replacement funding mechanism that recognizes the unique challenges of rural service delivery.
"This isn’t just about numbers; it’s about people," Mark added. "It’s about ensuring that rural families, businesses, and communities aren’t left behind. I will not stop fighting for fair funding for our area."
