Rural Communities

Lord Bishop of St Albans Excerpts

Tuesday 15th October 2024 Lords Chamber

[The Lord Bishop of St Albans]

My Lords, I thank the noble Baroness, Lady McIntosh, for getting this debate and I congratulate the noble Lord, Lord Elliott, on his excellent speech. I declare my interest as president of the Rural Coalition.

Rural communities make up nearly 20% of the population. That is similar to the number of people living in London, yet our biggest metropolis, among others, often feels far more integral to our policy and governance than our rural communities do. Rural communities are not just the responsibility of Defra; they are a significant proportion of our population, businesses, services and economy, and they cut across every government department. The specific impacts and challenges of policy rollout in rural areas need to be baked into the decision-making process of every single government department—not an afterthought but integral to the development of policy from the very beginning. Rural concerns are so often given to Defra which, while it has the lead on rural affairs, has very few of the levers necessary to bring about change. The sustainability of our rural communities should be of critical concern to us all, regardless of where we live.

The Rural Coalition of which I am president—a coalition of 12 national rural organisations—has commissioned and recently published a report, Reigniting Rural Futures. It highlights the impact that years of underinvestment have had on the rural economy and the massive potential there is if we simply have the will and imagination to grasp it. I am not sure whether the Minister has read this report, but I would be very happy to leave her a copy at the end of this debate. It shows that, in the rural economy, productivity stands at just 82% of its non-rural counterpart and will decrease to 79% by 2040 if this trend continues. Those of us who champion rural communities have long been calling for fairer funding for rural, but I want to make the case as to why this is not just yet one more demand on already-tight government purse strings but an opportunity for growth.

The noble Lord, Lord Cameron of Dillington, helpfully referred to research that shows that, with the right policy framework, the rural economy could increase productivity significantly, leading to an additional income of something like £9 billion to £19 billion annually in tax revenues. The Treasury stands to gain from an invigorated rural economy; it is an opportunity that should not be ignored.

Historical underfunding in rural areas has resulted in fewer and poorer services, along with underinvestment in essential infrastructure and connectivity. There is a lack of access to suitable educational and job opportunities, along with a desperate lack of affordable housing, which often drives the part of the population that is economically active out of rural areas, making the problem ever worse.

I will make a few short points about rural affordable housing, as I know that His Majesty’s Government have made affordable housing for all a priority, on which I congratulate them. It is part of the plan to boost economic prosperity, but I hope that this mission will take account of the particular pressures around rural affordable housing. How will the Government ensure that the benefits of these policies reach rural areas?

In 2022 the most affordable homes were 8.8 times more expensive than average lower-quartile earnings in rural areas, compared with 7.7 times more expensive in urban areas excluding London. Housing waiting lists in rural areas grew by 20% between 2020 and 2023, compared with a growth of just 14% in urban areas. Rural homelessness has increased by 25% since 2021-22. It is clear that the lack of affordable housing in rural communities is a significant barrier to rural prosperity.

There is much more we could discuss around the premiums of rural service delivery caused by challenges, including sparsity, facing rural business. Remember that 23% of our businesses in this country are in rural areas. There is the problem of digital connectivity, and there are mental health and well-being challenges, with a higher suicide rate in rural areas. I hope that other noble colleagues will pick up these issues.

Finally, I emphasise once more the desperate need for a cross-governmental strategic approach to rural affairs. The consideration of rural communities must be addressed at the very beginning of the development of policies and right through the delivery process. With the proper investment, our rural communities can not only continue to be a vital economic asset to this nation but contribute significantly to its growth.