The Parliamentary Under-Secretary of State, Department for Environment, Food and Rural Affairs (Lord Gardiner of Kimble) (Con)
My Lords, I congratulate my noble friend Lady McIntosh on giving us the opportunity to debate public services in rural areas. Having chaired the Environment, Food and Rural Affairs Committee for five years and represented a rural constituency for 18 years, her knowledge of and commitment to rural communities is undoubted. I was very much struck by her reference to “country folk”; this is very much how I consider the tribe that I know, and I thought it was interesting to hear from noble Lords from Somerset, North Yorkshire, Caithness and Essex talking about the experiences and concerns of country folk. My noble friend spoke of the Great Yorkshire Show. Having been the president of the Buckinghamshire County Show in 2007, I know how important the agricultural shows are to rural communities and beyond, and I wish the Great Yorkshire Show every success this year.
It has surely been a highlight of this debate to hear the maiden speech of my noble friend Lord Haselhurst. As Member of Parliament for Saffron Walden from 1977, my noble friend has long been a passionate supporter of rural interest in a beautiful part of rural Essex. We are fortunate to have in your Lordships’ House such a distinguished parliamentarian, and I agree with him that infrastructure and connectivity are especially important. I know of his work on the West Anglia network and his report on how the railway network might be improved. In the next few years Greater Anglia will be carrying out a full fleet replacement, investing £1.4 billion in new trains. I am very much looking forward to the benefits that that will bring to customers.
As I said in last week’s debate on the NERC Act, this Government are committed to bringing sustainable growth to the rural economy and boosting rural areas so that people who live in the countryside have the same opportunities as those who live in towns and cities. I agree with my noble friend Lord Caithness that many people choose to live in rural areas because of the quality of life. As Minister for Rural Affairs, I strongly believe that the countryside is a great place to live and work, and official statistics reflect this. Since 2008 there has been an increase in net migration to predominantly rural areas in England. Those living in predominantly rural areas are likely to feel more positively about their neighbourhood. Life expectancy is higher. The employment rate in rural areas is higher than the UK average and the unemployment rate lower. Half a million businesses are registered in rural areas of England—one quarter of the total. Indeed, 14 enterprise zones have been established in rural areas and we are blessed with some of the most exceptional landscapes in the world, which, as the noble Baroness, Lady Harris of Richmond, highlighted, underpin a tourism industry that accounts for 14% of rural employment and 11% of rural businesses in England.
The fundamental features of rurality—more geographically dispersed and more sparsely populated than urban areas—can be a key attraction of our rural towns, villages and hamlets, but all of us who live in rural areas know of the challenges of distance and sparsity and their impact on delivery of important services. As a number of your Lordships referred to, there is a higher proportion of older people in rural areas compared with urban areas, which places pressure on, for instance, health and social services. Of course, as the noble Baroness, Lady Jones of Whitchurch, said, and as we are all aware, there are hidden pockets of deprivation in the countryside that we must tackle.
A number of your Lordships raised rural proofing. My noble friend Lord Caithness referred to it being important and the noble Baroness, Lady Harris of Richmond, asked about it. All I can say is that it already takes place. That is why rural proofing is absolutely fundamental to government policy. We published revised guidance last year and we have put more statistical material on GOV.UK to provide a range of evidence for departments to draw on. I say to my noble friend Lord Caithness that the Permanent Secretary’s letter of 2 July was a reiteration, not a first step or the beginning of a journey. That is reflected in work across government to make sure there are fair and equitable services in rural areas. All the major funding formulas have components to take account of sparsity and rurality. In the Government’s consultation on fair funding for local government, rurality was identified as one of the three main cost drivers.
A number of your Lordships, in particular the noble Baroness, Lady Harris of Richmond, and my noble friend Lord Caithness, referred to education. The revised schools funding formula for 2018-19 led to an increase in funding for rural schools of 3.9%, compared with an average of 3.8%. Indeed, schools in the more sparsely populated villages saw an average increase of 7.5%.
On health, clinical commissioning groups in predominantly rural areas in England receive 17% of funding, which is in line with the proportion of the population that they cover. I was aware of what the noble Baroness, Lady Jones of Whitchurch, and my noble friends Lady McIntosh and Lord Caithness, said. On GPs, the Department of Health announced last year an extension of its targeted enhanced recruitment scheme, which provides a £20,000 salary supplement to attract newly trained GPs to harder-to-recruit areas. Some 238 GP training vacancies were filled by the end of January this year and 250 places are being made available for the rest of this year. That is clearly a very important part of these matters.
I also say to the noble Baroness, Lady Jones of Whitchurch, that the Government have increased the rural services delivery grant to £81 million—its highest level ever and an increase of £31 million on its original allocation. I have not read the report to which the noble Baroness, Lady Harris, referred, but I assure her that it will be in my recess reading.
A number of your Lordships raised the subject of the Post Office. I place great importance in this as part of what I would call the community hub, which is so important for village communities. The post office network has remained relatively stable since 2009, with more than 11,600 post office branches at the end of March 2017, a small increase on the previous year. There are more post offices in rural areas than in urban areas, many collocated with the village shop. I have regular meetings with Paula Vennells, the chief executive of the Post Office, and her commitment to the network in rural areas is striking. We agreed on the need to improve awareness of the significant amount of personal and business banking that can now be undertaken in post offices, which helps rural areas.
The noble Baronesses, Lady Jones of Whitchurch and Lady Bakewell, and my noble friend Lady McIntosh referred to housing. Indeed, I take a personal interest in these matters and facilitated an affordable housing scheme on the farm many years ago. The latest figures show that 119,000 affordable homes were built in rural areas between April 2010 and March 2017. On a per population basis, more new homes were built in rural than in urban areas. The Government have recently introduced changes to permitted development rights that mean that five new homes can be created from existing agricultural buildings on a farm, rather than the maximum three currently permitted. There is a strong rural narrative in the housing White Paper and a separate rural chapter in the draft National Planning Policy Framework, on which the Government have just consulted.
I agree absolutely with my noble friend Lady McIntosh that we should build the right houses in the right places and that new developments should be mindful of landscape and the character of the village. Indeed only last Friday, as part of Rural Housing Week I visited Mackmurdo Place in rural Essex—an excellent example, providing affordable housing for young and old with a multigenerational community, which I think a number of your Lordships raised and is absolutely important. It is, again, sensitive to the needs of the local area. I specifically asked: there is a SUDS scheme as part of that development.
Digital connectivity also is essential. A number of your Lordships mentioned electronic prescriptions. The Government met their target to provide superfast broadband to 95% of premises by the end of 2017, but that leaves still far too many people without a decent service. We have therefore legislated to bring in a universal service obligation so that no one is left behind. The forthcoming publication of the future telecoms infrastructure review will set out a plan to create the right market conditions to deliver nationwide full fibre and 5G. As my noble friend Lord Haselhurst mentioned, we must work to improve mobile coverage, and the Government are committed to that.
A number of your Lordships referred to buses. The community minibus fund has provided more than 300 local charities and community groups across England with more than 400 minibuses to use for the benefit of passengers. This has been successful particularly in remote rural communities.
My noble friend Lord Caithness raised research, which I agree is important. A panel of academics has been set up in Defra. We will develop a statement on research priorities, as this is clearly an important feature of ensuring that the dynamics of the rural economy are enhanced.
The noble Baroness, Lady Bakewell, mentioned libraries. All libraries now have free wi-fi and access to IT equipment. They provide access points to many services, which I very much endorse.
In the time I am permitted, I of course encourage visitors to Richmond. I hope that the noble Baroness, Lady Jones of Whitchurch, has a rain-free period, although I hope that we have some rain before she goes.
A number of points were raised. I am struck by the richness of local initiatives. As the noble Baroness, Lady Harris of Richmond, said, volunteers and the voluntary spirit in the countryside—as a complement, not a replacement—are an essential part of the vibrancy of the village. Whether it is the village shop, the person who raises the bulk purchasing of fuel or the running of a village hall, all this serves the community.
I am over time, but I want to say that, as rural champion, I will always champion the interests of rural Britain. This Government are determined to secure prosperity and well-being for rural communities and to grasp the undoubted challenges, but let us also celebrate the wonderful features of the countryside. I apologise to my noble friend on the Front Bench for overstepping the mark by a minute, but surely this debate is worthy of it.