Rural Communities: Government Support

Andrew Murrison Excerpts

Wednesday 12th March 2025 Westminster Hall

[Caroline Voaden]

The hon. Member’s point comes back to what I am saying about having people at the top table who really understand how these economies work, because so often those smaller communities are lost under the larger voice of the big cities.

In peripheral rural and coastal communities, which have higher levels of high occupational risk groups—for example, farmers and vets—social isolation and loneliness is a cause for concern, with higher levels of suicide and self-harm admissions and lower levels of referral to psychological therapies.

Rural isolation is particularly acute for older people who do not drive. With every pub, café or post office that closes, the opportunity to socialise with others, or even just have a conversation, disappears. It is also damaging for younger people; rural living means fewer opportunities for leisure, sport, socialising and part-time work, embedding disadvantage through a lack of opportunity to gain vital employment skills.

That all sets the scene for the challenges of living in and providing services to rural areas, and I am sure that colleagues will elaborate on many of them, such as buses, banks and broadband, but I would like to finish by looking at funding, because that has a real-world impact on rural communities such as mine, and the figures are—quite frankly—shocking.

Under the 2025-26 local government finance settlement, Government-funded spending power in predominantly urban areas will be £573 per head, compared with £407 in predominantly rural areas. Urban councils will get a huge 41% more per head than rural councils. Over 10,000 people, that equates to £1.66 million a year. Council tax per head will, on average, be 20% higher in rural areas than in urban areas. And, now, predominantly urban areas are to receive over seven times more of the proposed £600 million recovery grant than predominantly rural areas.

Last week, the Government announced continued funding for the rural England prosperity fund, with up to £33 million directed to the fund to

“improve local infrastructure and essential services that benefit rural communities and help businesses…to expand, creating jobs and kickstarting the rural economy.”

From 2023 to 2025, that fund was £110 million, so, while £33 million is welcome, it does equate to a 36% cut in annual funding.

We welcome DEFRA’s announcement of up to £5 million to go towards the continuation of important services for rural communities, such as capital funding for the refurbishment and development of much-needed community-owned assets, such as village halls and community centres. I have seen several of these projects in my own patch, with upgraded community centres doing vital work in bringing the community together.

However, the Liberal Democrats are concerned by the Government’s decision to allocate additional funding within the local government finance settlement on a need and demand basis. The new system of allocation will not recognise that the sparse and isolated nature of rural areas drives higher costs for the delivery of essential services, creates challenges in recruitment of staff for key services, and requires local authorities to provide a greater subsidy for the provision of public transport. We know that the challenges of recruitment are having a direct impact on inward investment into rural areas, because companies who want to invest in South Devon are anxious about doing so because they know that workers cannot afford houses in the area, so where will the workforce come from?

Likewise, the Government’s suggestion is that funding previously allocated to rural local authorities under the rural services delivery grant will be repurposed under the need and demand basis that jeopardises rural local authority funding. That is despite the grant providing rural local authorities with £100 million for the roll-out of essential public services, including emergency services and the provision of social care in 2024-25. We therefore urge the Government to provide rural councils with a funding settlement that reflects the impact of the rurality and sparsity of the areas they serve, through the application of the fair funding formula.

There is a lot to unpack here, but I have secured this debate to urge the Government to think about working more across Departments, and to bring people together to really consider the impact of departmental spending decisions, not only on that Department, but on each other. How do Transport decisions affect Education, and, with it, the wider skills agenda? How do the Health decisions that are made impact the economy in a rural area? How does the closure of hospitality businesses affect rural isolation, loneliness and mental health outcomes? I could go on, but will leave it to colleagues to give examples from their constituencies to highlight many of these issues.

[Dr Andrew Murrison (in the Chair)]

I remind Members that they should bob if they wish to be called. Members will have observed that the debate is oversubscribed, with a long list of people who want to contribute. Therefore, I urge discipline and an indicative limit of two minutes, and if you were not here at the start of the debate, you will not be called. We will start the winding-up speeches from the Front Benchers at eight minutes past 5.

[Lee Pitcher (Doncaster East and the Isle of Axholme) (Lab)]

It is a pleasure to serve under your chairmanship, Dr Murrison, and I congratulate the hon. Member for South Devon (Caroline Voaden) on securing this debate.

Representing a rural area and having spent a lot of my career working with rural communities and the land, I am keenly aware of the challenges that the communities in my constituency face. When services fail, it is our rural communities that are hit first and hit hardest. Because of their size, small rural schools and doctor’s surgeries are already working with smaller margins than their urban cousins. When budgets have been cut, those cuts have gone straight to the bone. Rural broadband and phone services lag behind, making it more challenging to set up businesses to work from those areas.

I have seen areas where rural bus services have been reduced to almost nothing—when they have not disappeared completely—cutting off communities and massively affecting the lives of elderly and disabled people. The big bus companies have pulled out of many of our rural areas, but I know that those routes can work. Hornsby Travel, a local family company in the Isle of Axholme, is doing amazing work in finding ways to provide vital connections for rural villages. Even roads, the one lifeline to country villages, are falling deeper and deeper into disrepair, as squeezed budgets force local authorities to focus on only the busiest roads.

I recently visited Wroot Travis primary school, which has fewer than 30 pupils. The children had sat down and worked out the one thing that they wanted to speak to me, their MP, about: they wanted a sign outside their school, warning drivers about children crossing the road. I was happy to write to the local council to champion their cause, but I cannot help but feel that a school in a town or city would not even have had to ask; it would have been done automatically. That is such a small thing, but it is symbolic of the way that rural communities have been treated as an afterthought or not even thought of at all.

If that street sign is a symbol of how things have been, I hope that the steps this Government are taking are symbolic of a new relationship with rural communities. The rural England prosperity fund is one such step, helping to support local businesses to establish, grow or diversify and supporting charities and community groups to enrich their areas. Another is the additional funding brought by the rural community assets fund, which will help to preserve and improve cherished local community facilities. Finally, the Action with Communities in Rural England grant will help rural community groups and others to offer social inclusion activities. I am sure that the Minister will talk about many of those measures and more, but I welcome them, and especially their focus on empowering and developing capacity within our rural communities and working with people to give them the tools they need to make their communities flourish.

The knowledge and expertise of generations that have worked and bring great value to our local communities need to be recognised, particularly as we start to meet the challenges that climate change brings. New blue-green engineering will be a huge and vital part—

[Dr Andrew Murrison (in the Chair)]

Order. I call Gregory Stafford.

--- Later in debate ---

[Dr Roz Savage (South Cotswolds) (LD)]

It is a pleasure to speak under your chairmanship, Dr Murrison. I thank my hon. Friend the hon. Member for South Devon (Caroline Voaden) for securing this debate.

South Cotswolds is an area rich in heritage and beauty, but it faces distinct challenges in, for example, public transport and access to NHS services. The cancellation of the 84/85 bus route last year severed connections from Hillesley and Alderley to Yate. I know of a young man who was raised by his grandparents, who could not afford to run him around the place, so he relied on the bus to get to college. His college course offered him a real opportunity to train for a job with decent prospects, allowing him to escape the cycle of poverty. When the bus route was cancelled, he could not get to college and had to drop out of his course.

A second example is an older lady who used the bus to get into Yate to do her weekly shopping. When the bus route went and she could not get into Yate, she lost her freedom and independence. She became isolated and lonely, the health consequences of which are well documented. Those examples demonstrate the false economy of cutting public transport, which leads only to greater reliance on the state and fewer opportunities for individuals.

Access to NHS dental services is a serious problem. I know of a lady in Tetbury who had severe toothache and had to rely on Bonjela until she was able to arrange for transport for treatment. Meanwhile, I am engaged in an ongoing battle with the local integrated care board to ensure continuity of private care provision in Sherston. The ICB has admitted that its toolkit, the algorithm it uses to decide the distribution of resources for primary care, was designed for an urban context, not a rural one. Coupled with the lack of public transport, this is causing real problems.

[Dr Andrew Murrison (in the Chair)]

Order. I call the Liberal Democrat spokesperson.