Rural local authorities have attacked the level of council tax subsidy given by the government to London.

Sparse (the Sparsity Partnership for Authorities delivering Rural Services) said on Monday that ministers should readjust spending so that countryside areas do not suffer.

The lobby group for 50 local authorities pointed to figures showing that its members receive 90 per cent of the English average of cash for spending, while its council taxes are two to three per cent above average.

It contrasted this with inner London, where spending is 40 per cent above average and council tax 82 to 86 per cent of the mean national level.

The call came in a submission to Sir Michael Lyons' government-sponsored review of town hall finances.

Sparse co-chairman councillor Steven Pugsley said the status quo was discriminatory.

"We are calling on ministers to close the widening council tax gap between city areas and the countryside - as things stand, we are confronted by plain fiscal unfairness," he said.

"The whole of the government's rural strategy is severely undermined by the way in which country dwellers have to pay more to get fewer services," he added.

"The report notes that the grant system fails to reflect properly the effects of rural deprivation and population dispersal on the cost of providing services to far-flung rural communities.

"Now is the time for the government to adjust the system better to reflect the higher costs associated with providing local services to country communities."