‘Unfair’ funding holding back social mobility in rural counties

A cross-party group of MPs have reported that the least socially mobile areas in England are counties because of ‘outdated’ and ‘inequitable’ method of funding for councils.

The Social Mobility in Counties report, published by the County All-Party-Parliamentary Group (APPG) and County Councils Network (CCN), claims that the perception of counties as affluent areas has masked deep-seated socio-economic challenges and deprivation in shire counties, with the additional costs of delivering rural services not fully recognised in the way funding is allocated to councils.

The report finds that eight out of the bottom ten least socially mobile areas in England are county areas, and are overwhelmingly rural and coastal. Regarding the funding formula, evidence suggests that councils in London receive £482 per head, whilst metropolitan boroughs and cities receive £351 per head. This is in comparison to the £182 per person for public services in county areas.

The report, using a new ‘social mobility index’ compiled by the think-tank Localis, says that rural areas are amongst the least socially mobile, with Devon (south-west), Kent (south-east), Cumbria (north-west) and Durham (north east) in the bottom ten. Coastal communities such as Dorset and Norfolk are also in the bottom ten.

Peter Aldous, chairman of the County APPG, said: “For a long time now, the perception that counties are affluent and wealthy has meant they have been overlooked in terms of directing resource and policy towards improving social mobility. An outdated and inequitable method of funding local authorities has disproportionally channelled funding towards London and the major cities; holding back social mobility in county areas, and embedding a cycle of low life chances for residents. This is unfair.
 
”Funding is only part of the answer; today’s report showcases the innovative work county authorities are doing to raise social mobility in their areas, but their ambitions are hamstrung. If we are to bridge rural vs urban divide in social mobility, then government needs to ensure that counties have fair and sustainable funding in future, backed by the powers to genuinely make a difference.”

Jonathan Werran, chief executive of Localis, added:  “Our research for the commission shows young people in London are pulling away from the rest of the country in opportunity and educational outcomes as soon as they enter school. Young people growing up in coastal and rural areas of England are then further constrained by poor skills infrastructure and in many cases weak prospects for finding good local jobs that pay decent wages.
 
“Devolution of the adult skills budgets to all strategic authorities, and a more ambitious reconfiguration of local political economies represent two main opportunities for boosting social mobility and delivering the promise of an inclusive growth that can help bridge today’s unacceptably wide urban-rural divide.”