Recommendation 22

We asked whether the new formula would take account of the higher costs faced by rural authorities in respect of home to school transport. MHCLG told us that, across the local government finance settlement and in its revision of funding formulae, it was confident it was capturing the needs of both urban and rural authorities. For example, rather than looking at straight-line distances in terms of miles travelled, MHCLG said it would take account of how long it takes to drive, reflecting that it can take a long time to travel short distances in urban areas or that you may not be able to travel fast in rural areas.56 52 Q 52, MHCLG, Consultation Outcome, The Fair Funding Review 2.0, June 2025, section 4.11 53 CA&AG’s Report, para 5; The Association of Directors of Children’s Services (HTS0011) 54 Q 52; C&AG’s Report paras 3.25-3.26, 55 Qq 50-52 56 Q 52 15