Access to a city affects the provision of local services. Cities typically have more services than towns and many more than villages. Towns and villages far from cities tend to have more services than similar-sized settlements close to cities, as those living near a city may obtain some services in the city rather than in their smaller suburban locations. Towns have more services when they are regional centres, i.e. the largest settlement within a certain driving time.

Transport connectivity also matters for service accessibility. On the one hand, towns with efficient public transport services tend to have more service outlets. On the other hand, towns that are more reliant on driving to serve the surrounding population tend to have fewer available services. Fast connections by road – for instance, through high-speed highways – may result in more services being offered in smaller places as potential outside demand increases, but can indirectly result in less provision if drivers favour larger settlements offering more varied and better services.

Over the last decade, most towns close to a city grew even though half of all villages in the European Union and more than 40% of its towns have lost population. Settlements near cities provide their residents with access to employment opportunities and services, and most, in fact, do not offer a full range of services within their own boundaries. Many settlements far from cities – and regional centres in particular – are service hubs but have still experienced population decline as the population is being pulled into cities and their surrounding areas. Going forward, because an increasing number of towns and villages across the OECD are projected to experience population decline and ageing, service provision needs to be complemented by targeted, cohesive development strategies to help smaller places, in particular, remain attractive.

Policies need to focus on the accessibility of services. The conditions for service delivery are usually easier for regions with larger cities compared to more rural regions. To make sure everyone can get access to services, governments can strengthen the provision of local services that should be easy to access, like elementary schools and primary medical care, in a cost-efficient way – for instance, through service co‑location – while seeking feasible digital or mobile alternatives and consolidating specialised services in nearby regional centres. Better (public) transport connectivity to cities, towns and regional centres can promote service access for everyone.