Rural Communities

Earl of Caithness Excerpts

Tuesday 15th October 2024 Lords Chamber

[The Earl of Caithness (Con)]

My Lords, I congratulate my noble friend Lady McIntosh of Pickering on securing this debate on the important subject of rural communities.

I was privileged to sit on the Rural Economy Committee of this House in 2019. Our report, Time for a Strategy for the Rural Economy, is only five years old and, having reread it, I find it still very relevant today. We identified several problems that rural areas face in comparison with urban areas, many of which have got worse. It is not surprising that the evidence in the Regional Moorland Groups report, published a month ago and entitled The People’s Plan for the Uplands, shows that 97% of the people who live in these areas feel “abandoned by politicians”.

However, we also evidenced the opportunities that these areas could offer. I follow the right reverend Prelate and the noble Lord, Lord Cameron, in highlighting the £9 billion to £19 billion in extra revenue that is available. If I were a Treasury Minister again, I would be very keen to exploit that potential.

I will identify some other key facts. In 2021, rural workers’ productivity was 82% of that of non-rural workers, which is a significant productivity gap. If trends continue, rural productivity is expected to decrease to 79% of non-rural by 2040. In 2021, the non-rural economy was six times larger than the rural economy and is projected to grow to 6.5 times larger by 2040. A 2022 report for the Rural Services Network, when reviewing the then levelling-up White Paper, showed that, if rural communities were a distinct region, their need for levelling up would be greater than any other part of the country. The cost of living is higher in rural areas. The rural fuel poverty gap is nearly double the national average.

As other noble Lords have said, there is a shortage of housing of the right type and tenure. The National Planning Policy Framework should include measures suggested by the Rural Services Network in England, which would help increase the delivery of affordable homes that meet local needs in small rural communities. Without an adequate supply of affordable housing and workspaces, it is difficult for rural businesses to flourish.

Since our report in 2019, digital infrastructure has improved, although it is still far from adequate. Can the Minister confirm that the remainder of the Project Gigabit programme will be delivered? Will she place the focus on rural areas, which are still losing out, and redouble efforts to ensure the rollout of networks that will give the full fibre or gigabit capability of broadband connectivity? Without good connectivity, rural communities are being discriminated against and businesses are being made unprofitable.

Many reports have highlighted the unique challenges faced by rural communities and businesses. There is no lack of evidence. What is important for the Government to understand is that businesses, people and communities in rural areas are faced with the aggregate multiple impacts of all these issues. It is this that makes me stress the importance of our report’s first recommendation and title: the need to have a comprehensive rural strategy.

Will the Government commit to developing a specific, tailored rural strand within the Government’s economic growth strategy, with buy-in across Whitehall departments, including the Treasury? Such a strategy should include measures that will help diversify rural economies, raise productivity and attract quality job opportunities. Such a strategy will be more effective if all government legislation is thoroughly rural-proofed and has a place-based approach to reflect the diversity of the countryside and the capabilities and knowledge of those who live and work there.

I end with three further questions for the Minister. Given that farming is still an important component of our diversified rural areas, when do the Government intend to publish their land use strategy? In 2019, Defra’s in-house rural policy team comprised about 60 staff. What is the number today? Finally, can the Minister tell us what rural areas, if any, will benefit from yesterday’s inward investment summit?