Rural Communities: Government Support

Angus MacDonald Excerpts

Wednesday 12th March 2025 Westminster Hall

[Mr Angus MacDonald (Inverness, Skye and West Ross-shire) (LD)]

I thank my hon. Friend the Member for South Devon (Caroline Voaden) for securing the debate. My two main calls for Government support for rural communities are as follows. First, rural communities producing a substantial portion of our nation’s electricity should be paid 5% of revenue for all newly consented renewable energy generated onshore and offshore, as a community benefit. That would be transformational for the income of rural areas.

Secondly, many homes in my constituency and throughout the country are forced to heat their homes with electricity, as they are not connected to mains gas. Electricity costs four times the price of mains gas per kilowatt. The reason is that environmental taxes, which make up a substantial part of electricity bills, are levied far more heavily on electricity than on gas. They should be equalised, because that is an unfair punishment for people whose homes are not connected to mains gas in Britain.

--- Later in debate ---

[Daniel Zeichner]

The hon. Member is absolutely right to raise that important point, which I will come to in a moment.

I was about to mention the £5 million in funding for capital grants for the refurbishment and development of community-owned assets such as village halls and community centres. That funding will also support rural housing enablers, who are very important in bringing forward sites to provide affordable housing. We are also providing further funding for Actions with Communities in Rural England to provide advice and support to rural communities and voluntary groups such as those that I mentioned visiting recently.

I recognise the descriptions from a number of colleagues of the need to travel further to access work, education and training. We fully appreciate that that can be much more costly and time-consuming, leading to the frustrations that have been described. I listened closely to my near-neighbour, the hon. Member for Ely and East Cambridgeshire (Charlotte Cane), when she spoke about local bus services. She will know that the mayor of the combined authority in Cambridgeshire has used powers to move to franchising for bus services. We have set out wider plans for the future in our bus services Bill, which will give local leaders the tools they need to ensure that bus services reflect the needs of the communities they serve.

The digital issue, which the hon. Member for Bicester and Woodstock (Calum Miller) has just raised, is central to our view of the future. It was also highlighted by my hon. Friend the Member for Ossett and Denby Dale (Jade Botterill). Through the shared rural network, which has helped to deliver 4G mobile coverage to 95% of the UK a year ahead of target, we are continuing to deliver 4G connectivity to places where there is the kind of limited coverage that has been described. We know that there are still parts that lag behind, and we will work with the industry to deliver improved coverage to those communities via the shared rural network.

[Mr Angus MacDonald]

I wonder whether the Minister can persuade the Chancellor to leave her constituency of Leeds West and Pudsey and explore the reaches of rural Britain. It strikes me that a lot of these issues are due to funding and the fact that rural Britain is substantially underfunded, compared with urban Britain.

[Daniel Zeichner]

That is a very long-running debate that goes back over decades. I will do all I can to persuade the Chancellor of the needs of rural Britain.

Project Gigabit continues to be rolled out. It is delivering gigabit-capable broadband to many UK premises, many of which are situated in rural communities that are not in the commercial roll-out plans.

Hon. Members touched on housing. Access to genuinely affordable homes is absolutely essential. The current housing shortage is driving up rents, leaving some of the most vulnerable without access to a safe and secure home. We are reforming planning policy, but I will not try to cover that complicated problem in one minute. Last year, the Government ran a consultation on the national planning policy framework. The response to the consultation reflected on the higher costs of housing delivery in rural areas and the fact that we want more affordable housing in those areas as part of our ambition to deliver the biggest increase in social and affordable house building in a generation. We will consider how policy can better promote rural affordable housing and wider exception site policies as part of the work we do to introduce those policies later in 2025.

Hon. Members touched on energy costs, which are a huge challenge for rural areas. I am very aware that fuel poverty rates are higher in rural communities. Many homes are off the gas grid and are therefore more susceptible to fuel price fluctuations.

The hon. Member for South Devon asked about the index of rural deprivation report. I am told that it will be published later this year.