A committee of MPs has raised concerns over the existence of a 'rural penalty' that sees those living in the countryside paying more for a range of essential services.

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The warning, made by MPs on the Environment Food and Rural Affairs committee upon publication of their report into Rural Communities, echoes calls made by a number of MPs representing rural constituencies this year and last. MPs from all three major parties backing the Rural Fair Share Campaign secured a debate in Parliament in February. The MPs warned that government cuts are being meted out too heavily on rural regions, which they argue have been hit twice as hard as urban areas.

In May, a report on business in rural Britain also revealed widespread uncertainty and reduced optimism. The study was conducted by the CLA, which also warned that government policy is exacerbating the issue of rural neglect.  Earlier this week, a study by Age UK found that elderly people in the countryside are being hit hard by cuts to transport services, and the loss of amenities such as banks and shops.

Releasing their report on Wednesday, EFRA committee MPs identified a growing divide between urban and rural communities and a 'rural penalty', which they said the government has failed to address. The MPs compiled a laundry list of disparities between rural and urban areas, which they claimed is "deeply unfair."

They found rural communities pay more in council tax, receive less government funding overall and have access to fewer public services than people in large towns and cities. The committee also backed the claims of the Rural Fair Share group, pointing out that schools in rural regions receive less than half the level of funding per pupil as do urban schools.

MPs also criticised the deeply unpopular 'bedroom tax' introduced by the current government, warning that a lack of social housing and affordable accommodation means local people could be forced out of their communities and that cutting housing benefit for those with a spare room would exacerbate this situation. Rural house prices average around £30,000 higher than their urban equivalents and house prices in the countryside have risen 35 percent faster than those in towns, despite the lower average pay in rural regions.

The MPs said that current government policy, and local authority funding, does not acknowledge the greater costs of providing services in rural areas. Committee Chair Anne McIntosh said policy has taken "a backward step" under the coalition.  

She continued, "Rural England desperately needs more affordable housing yet the Government's housing policies pay insufficient regard to the needs of rural communities. Failure to provide more of the right housing, at the right price and in the right place will exacerbate the existing problems of unaffordability and inequality in parts of rural England."

EFRA MPs said government should alter the policies doing damage to the countryside, including the Help-to-Buy scheme, which they warned could push house prices up further. They advised the government to make buying second homes less attractive and work out a fairer means of calculating the local government finance settlement, which currently disadvantages those in the countryside.

In addition to the growing pressures on countryside communities, the much touted high speed broadband roll-out, which features significantly in the government's rural development plans, is almost certain to be delivered late, according to EFRA MPs. The programme, intended to roll out broadband to 90 percent of rural Britain, is already running two years behind schedule.

The committee added that "The lack of mobile phone coverage in large parts of the countryside is unacceptable."

In response to the committee's findings, Defra claimed the department has demonstrated its commitment to the countryside through its funding of mobile and broadband packages and grants to rural businesses.