An independent finance expert produced the report for the lobby group SPARSE (Sparsity Partnership for Authorities delivering Rural Services), which is a coalition of more than 50 local authorities that cover some of the most rural areas in England.

The findings will be sent to Sir Michael Lyons, Chairman of the Government’s independent inquiry into the council tax launched last month.

The research found that council tax levels are higher in the most rural parts of the country than they are across the rest of England, and that this gap is wider this year than it was two years ago. However, despite this, spending per head on local services is lower in rural areas than across England as a whole.

The report also uncovers the extent to which rural areas get a raw deal when compared with urban areas. Council spending per head in inner London is 40% above the average, while council taxes are just 82-86% of the average. Yet spending in SPARSE’s member areas is 90% of the English average, while council taxes are 2-3% above average.

Commenting on the findings, Cllr Steven Pugsley, Co-Chairman of SPARSE said: ‘Any changes to the council tax system should not be allowed to worsen the already ill-favoured position of rural areas. Now is the time for the Government to adjust the system to better reflect the higher costs associated with providing local services to country communities.’