Rural councils such as Craven and North Yorkshire are facing the largest reductions in central grants, according to an initial analysis by the Rural Services Network.

Last month, Craven District Council learnt its draft settlement from central government represented a reduction in funding of 4.1 per cent in 2013/14 and a further reduction of 12.6 per cent in 2014/15. And North Yorkshire County Council’s reduction is set to be 5.9 per cent (£10.1 million) this year, and 7.6 per cent (£12.1 million) in 2014/15.

Graham Biggs, Rural Services Network chief executive, said: “This is a body blow for rural councils already struggling to provide services to countryside communities.

“Even before these reductions, urban areas received about half as much more funding per head than rural areas and this settlement further widens the gap.

“Rural residents already pay more council tax for fewer services because of historic government underfunding, so the settlement is very bad news for the countryside.”

The Government is due to confirm funding settlements later this month.