My Lords, I declare my farming interests as stated in the register.
I thank the committee for its report, and I very much welcomed the opportunity to give evidence earlier this year. We took on board many of the report’s recommendations and, although we have not accepted them all, we are nevertheless grateful to the committee for its work and for the thoroughness with which it has approached its task. It has shone a welcome spotlight on our rural areas. As Minister for Rural Affairs, I place supreme importance on the well-being of rural communities. Therefore, in the words of a noble Lord today, I speak up for the countryside, and I also hope that I am constructive. I very much look forward to engaging with the recently established committee, chaired by the noble Lord, Lord Foster of Bath, which will take forward this work with its inquiry into the rural economy.
When I arrived at Defra we went to something called a town hall meeting—when my officials told me we had to go there, I thought that I had gone to the wrong department. In my speech I said: “I look to Defra being a helping hand and not a heavy one”. I therefore take very seriously indeed all the points made by your Lordships. It will not be possible for me to address them in the time I am allocated, but I promise that there will be a response to all the points that have been made.
The noble Lord, Lord Teverson, spoke so eloquently in his opening in praise of country people. I agree entirely. The Government are committed to bringing sustainable growth to our rural areas, so that people who live in the countryside have the same opportunities as those who live in urban areas, and without detriment to the environment and its heritage. Our rural areas contribute nearly £250 billion to England’s economy. Half a million businesses—one quarter of the total—are registered in rural areas. I entirely agree with the analysis given by my noble friend Lady Byford of the economic engine. In fact, proportionately more people are employed by small firms in rural areas than in urban areas. Employment in rural areas is higher than the UK average and unemployment is lower, and well-being is also higher. There is a very strong sense of community, which is typified by the spirit of volunteers around the country who help with transport for those less able or who run the village shop or hall as a hub for the community.
I say to the noble Baroness, Lady Warwick of Undercliffe, that I recently had a meeting with Paula Vennells, the chief executive of the Post Office. My understanding is that the total number of post offices has risen by 16 to 11,659, and that is very much because of the collocation work that the Post Office is undertaking. My experience is that my local post office, which collocated to the convenience store, is now open many more hours than it was before. Therefore, it is an interesting picture and I am watching it very closely.
However, I acknowledge that, as all your Lordships know, there are challenges to rural life, many of which were highlighted during this inquiry and in this debate. Although the Government met their target for the provision of access to superfast broadband by 95% of premises by the end of 2017, and mobile phone operators reached their target for voice calls to cover 90% of the UK’s land-mass by the same date, I am acutely aware that the figures need to be improved. That is why we have legislated for a universal service obligation to act as a safety net for those without broadband connections, and Ofcom is looking at attaching obligations on mobile phone companies to improve 4G coverage. I am grateful that the noble Lord, Lord Teverson, raised the point about broadband, because we are seeing improvements but we want them to go much further.
I very much agree with the points about affordable housing. I should perhaps declare an interest. My maiden speech was in a debate on rural housing, and I facilitated a housing development on the farm. Because it is Rural Housing Week, I shall be visiting a scheme on Friday, and I am very much looking forward to that.
We need to ensure that the people working to look after Exmoor live in Exford and do not have to live in Exeter. We also need to ensure that rural communities can survive, with young people remaining in villages. Our recent changes to permitted development rights mean that up to five new homes can be created from existing agricultural buildings on a farm, rather than the current maximum of three. It is also why the housing White Paper has a strong rural narrative, and the draft National Planning Policy Framework has a rural chapter. I am very seized of the importance of rural housing schemes and ensuring that the school roll is vibrant, which again is a positive feature of a flourishing village—something that we all want.
We are clearly all united on the importance of effective rural proofing, and the Government are strongly committed to it. The noble Lord, Lord Cameron of Dillington, was a key contributor to the rural policy guidance document, which I and other Ministers from Defra took to the Cabinet Office Minister to discuss. The committee suggested that the Cabinet Office should take over responsibility for rural proofing. Indeed, it went further and proposed that responsibility for rural policy should move from Defra to the Ministry of Housing, Communities and Local Government. That is clearly not a decision for me. However, although rural proofing should be the responsibility of all departments, I believe that there are strong reasons why Defra is best placed to lead on rural affairs. I do not see rural policy as operating in a silo separate from either agriculture or the environment. To me, they are absolutely interdependent.
I of course recognise that the range of businesses and interests in rural areas goes beyond farming, but farming is still a backbone, shaping the environment and landscape, which in turn is an economic beacon for rural tourism. In upland areas in England, where the challenges are often greatest, 41% of businesses and 23% of employment are in the agriculture, forestry and fishing sectors. In Health and Harmony—the biggest consultation on agriculture, with 44,000 responses—we asked explicitly about the challenges facing rural communities, particularly those in the remotest parts of the country. Of course, like many other departments, the Ministry of Housing, Communities and Local Government has a strong interest in rural issues—and, as the right reverend Prelate the Bishop of St Albans mentioned, it is clearly essential that Defra works closely with MHCLG on housing, local government finance and the proposed UK shared prosperity fund.
In her commentary on rural proofing, my noble friend Lady Byford said Defra acts as a champion for rural proofing across government and supports departments so that policies take account of specific challenges and opportunities for rural communities. This is not an academic exercise: it is about achieving real benefits for those who live and work in rural areas, and I will take up the practical point made by the noble Baroness, Lady Scott of Needham Market, about the National Citizen Service. When decisions and policies are sent round for collective agreement, other departments know that we in Defra will be taking rural interests into account. It is not necessarily about delivering exactly the same outcomes for rural areas. The cost of providing basic services, as we acknowledge, is more expensive because of demography, sparsity and distance. We know that rural households are often further from hospitals, for example. But it is about showing that government departments have thought about how rural areas are different and how policies may need to be adapted.
For example, the new schools funding formula has reduced the gap between urban and rural schools. The Department for Education is testing out new work placement schemes in rural areas in the north-west and the south-west. I say to the noble Lord, Lord Cameron, that the rural services delivery grant for the current financial year is £81 million—the highest level ever and an increase of £31 million on the original allocation.
So I assure noble Lords that all Ministers in Defra are banging the rural drum. I am backed by a superb team of officials and I assure noble Lords that they are very committed to rural interests being at the heart of our department. We are able to draw on the work of not only Natural England, the Environment Agency and the Forestry Commission, but so many others who are active in rural areas. My own experience, as someone who has a deep personal commitment to the countryside, is that there is a deep recognition and understanding among many Ministers in other departments, many of whom have rural constituencies. So it is really important that Defra has these close and effective relationships across Whitehall. That is why I am on the ministerial task force on digital and on housing and am now a member of the new cross-government department team looking at loneliness. We are working with BEIS to bring about the rural dimension of the industrial strategy and making sure that we are involved in clean growth issues, and it is important to champion the UK’s food and drinks sector, which has its roots in rurality.
My officials and I have close engagement with organisations representing rural communities and businesses. Defra funds ACRE, with its network of 38 rural community councils across England. I have held a number of really outstanding meetings with a broad range of rural stakeholders on well-being, digital connectivity and the rural economy, and will soon hold two similar ones on loneliness and transport. I agree with the noble Baroness, Lady Scott of Needham Market, that in the end it is the sharing of knowledge, experience and good practice that will develop the solutions that work on the ground in rural areas. That is exactly what we need to fine tune. We need to get the solutions that work. That is why I agree with all noble Lords—I think that the noble Lord, Lord Cameron, led the charge—about a strong evidence base being essential. Defra will continue to publish data to help a much wider appreciation of rural issues. We have set up a rural academic panel. As we stated in our response, we will also produce clarity on rural research requirements to which we hope academia and the research councils will be able to respond. To respond to the right reverend Prelate the Bishop of St Albans and my noble friend Lord Caithness, we intend to publish the statement of research priorities in the autumn.
A number of noble Lords rightly raised the natural environment. My noble friend Lord Caithness referred to the publication of the 25-year environment plan and the noble Baroness, Lady Jones of Whitchurch, quite rightly wants action—as I do. That is why the review has been launched of our national parks and other designated areas of natural beauty—the noble Lord, Lord Cameron, is on the advisory panel. We have appointed a tree champion. We will also be making 2019 a year of green action, putting children and young people at its heart. The noble Baroness is absolutely right: we need and will be setting out how that will be progressed so that all noble Lords can feel that this is an action plan that has results.
Almost all noble Lords raised the governance gap for environmental protection. The noble Lord, Lord Rooker, and the noble Baronesses, Lady Parminter and Lady Young of Old Scone, made particular points. Since the committee published its report, we launched a consultation on a new environmental principles and governance Bill, which will make sure that environmental protections will not be weakened as we leave the EU. This will establish a world-leading body to hold the Government to account for environmental outcomes. Although it will be funded by the Government, it will be independent. I understand the frustration, but I cannot pre-empt the consultation and the consideration of all responses. I assure the noble Baroness, Lady Jones of Whitchurch, and noble Lords that I have heard all they have said on this particular matter.
The committee made a number of recommendations about the role of Natural England. I say to the noble Baroness, Lady Jones of Whitchurch, the noble Lord, Lord Cameron, and my noble friend Lady Byford that I can confirm that a communications protocol is currently being agreed with Natural England, which will codify ways of working with the Defra group to protect the integrity and independence of Natural England’s voice and brand. Clearly, Natural England has transformed its approach so that it deploys its resources strategically for the greatest positive impact and to deliver its statutory functions. Natural England is a separate legal identity and may exercise its legal powers in pursuit of anything that falls within its general purpose. This independence is in line with Natural England’s statutory remit.
The committee expressed its concerns about the long-term sustainability of the national trails network, which the noble Lord, Lord Teverson, raised. We are committed to finding a long-term and secure future for our national trails. We will work with interested organisations to explore options such as sponsorship that the committee suggested. Natural England is also working hard to complete the English coast path by 2020 and I am looking forward to a visit in north Yorkshire later this month to see further stretches connected. On the question of charging from my noble friend Lady Byford, the Government will consider as part of our planning for the 2019 spending review what charges could assist Natural England’s charging strategy. That is under consideration.
The noble Lord, Lord Bradshaw, and my noble friend Lord Caithness mentioned the vexed issue of green lanes. I appreciate that and have met the noble Lord, Lord Bradshaw, before on this matter. The motor vehicle stakeholder working group will meet in October. Obviously, we want there to be as much consensus as possible, because that is the way in the countryside that most of us find a way through. This is about trying to find those solutions. I am aware that it is a knotty challenge for some of the characters involved on all sides of this issue, but surely it must be right that having these quarterly meetings with the stakeholder working group helps us to try to find some consensus in the key areas on which there can be agreement so that we find a resolution. We want to ensure that green lanes are suitable for purpose and can be used by ever more people.
A number of noble Lords have raised the issue of the Countryside Stewardship Scheme. I am well aware of some of the concerns that have been expressed and my ministerial colleagues and I are alive to the issues as we go around the country. I hope that many key stakeholders—indeed, I can be confident about the number—now recognise that the simplified offers for the 2018 countryside stewardship application have been welcomed by the NFU and by the industry. I am very clear that the work in countryside stewardship and environmental advancement is going to be hugely important. It is the way forward whether it be health and harmony, environment, land management—indeed, all the areas that we in this House will be considering later on. This is going to be very important work for us.
The committee raised the issue of biodiversity. The noble Baroness, Lady Young of Old Scone, and the noble Lord, Lord Teverson, in particular mentioned the phrase “natural capital”. In areas such as flood resilience we are seeing a much greater understanding of the phrase and are attaching importance to it. In response to the noble Lord, Lord Cameron, and my noble friend Lord Caithness, I should say first that through commitments to strengthen the duty on public bodies, we wish to embed a principle of net gain within the planning system. This will address many of the issues which have sometimes made housing and development a problem. This will lead to a net gain within the housing system.
Secondly, we will publish supplementary information to accompany our guidance on the biodiversity duty, setting out how public bodies can further the ambitions of the 25-year environment plan. We will continue to work in partnership to help public bodies take action and to protect and enhance the environment. I have to say to noble Lords that if I had more time, I could outline many examples of this. Addressing the decline in biodiversity is a priority for the Government.
In conclusion, I have spoken about landscapes, the environment, farming, the rural economy and services, but in the end it all comes down to people and the communities they create. We need to see proper recognition of the communities on whom we rely for so much. They should have the same opportunities as those in urban areas and their needs and challenges need to be taken properly into account. That is our ambition in government, and it is my ambition, given that I have the privilege of being the Minister for Rural Affairs and the rural ambassador. Given all the differences and challenges in your Lordships’ House, I believe that we are united in the purpose of seeking a very strong and vibrant future for the rural communities not only of England but of the whole of the United Kingdom. We owe them a great deal and it is our task to ensure that they have a buoyant future.