Rural Communities

Debate between Dan Rogerson and Bill Wiggin

Thursday 9th January 2014 Commons Chamber

[The Parliamentary Under-Secretary of State for Environment, Food and Rural Affairs (Dan Rogerson)]

I, too, pay tribute to my hon. Friend the Member for Thirsk and Malton (Miss McIntosh), and indeed the other members of the Environment, Food and Rural Affairs Committee—I want to be inclusive—for the report. I thank the Committee, and all those who have an interest in these matters, for bringing forward evidence and engaging with the Government on a number of other areas.

I disagree with a number of the points that the hon. Member for Ogmore (Huw Irranca-Davies) made, which I will come to later, but I agree that there is sometimes an artificial divide between urban and rural areas when it comes to service provision. The fact is that both rural and urban areas depend on each other for different services, whether outdoor activities, as we heard from my hon. Friend the Member for Macclesfield (David Rutley), the natural capital that is cared for and provided, the food that is grown and all the opportunities provided in rural areas, or the economic and other activities provided in urban areas, such as industrial activities, which support rural areas. The hon. Gentleman was absolutely right about that artificial divide, although I disagree with him on many other points and will come to them in due course.

Rural growth is a key priority for DEFRA, just as growth in general is for the Government. The Government have placed a strong emphasis on unlocking the potential of rural communities and businesses to allow them to grow and thrive sustainably. We have established five pilot rural growth networks aimed at tackling the barriers to economic growth in rural areas, such as the shortage of work premises, slow internet connectivity, fragmented business networks, competitiveness, skills and support for micro-enterprises.

Several hon. Members mentioned the resourcefulness and resilience of rural communities. For example, we heard about what is going on in High Peak to provide community facilities and safeguard resources. My hon. Friend the Member for Montgomeryshire (Glyn Davies) talked about rural life in general and the great contribution that people in rural areas make to the wider economy, something that I think we should all reflect on and celebrate in this debate.

The pilot rural growth networks expect to create up to 3,000 new jobs and support up to 700 new businesses through a local approach to local issues, but their legacy will go beyond that. We are evaluating the lessons they learn and will share them with local enterprise partnerships and local authorities. LEPs are working with local partners, including those with rural economic and social interests, to agree draft European structural investment fund strategies. DEFRA is discussing the development of those strategies to ensure that they give appropriate consideration to rural economies. It is absolutely right that some LEPs are very rural in focus while others have a balance between urban and rural. We must ensure that the rural interest is at the forefront as they introduce their strategies.

DEFRA’s rural development programme for England has invested more than £400 million in projects, created over 8,500 new jobs and safeguarded a further 9,700. An impressive area of delivery, and certainly one that has helped bring forward the local engagement that other Members have talked about, is the 64 LEADER local action groups in England. They were allocated £137.9 million from the total £3.7 billion of the current programme. They are on target to spend that in full by the end of the programme. Their key achievements include over 1,000 civil society representatives involved; over 4,200 projects approved; over 21,000 training days delivered; over 2,600 jobs created; 700 micro-enterprises supported; and nearly 200 new micro-enterprises created. There are other sources of funding from other routes, whether the public sector or charitable sources, that unlock the potential of the community schemes that hon. Members have talked about, which will make significant changes in their communities.

Under the new rural development programme, which will run from 2014 to 2019, we will transfer 12% from direct payments to go towards environmental, farming competitiveness and rural growth schemes in England. That is a significant change in the way we administer CAP money and it is important that we get the change right. In 2016 we will review the demand for agri-environment schemes and the competitiveness of English agriculture with the intention of moving to 15% for the final two years of this CAP period. The overall investment equates to £3.5 billion for environmental and rural development schemes over the next seven years. That means that, even with a smaller overall CAP budget, the Government will be spending a bigger proportion on the environment than before.

We want growing the economy to be an important part of that. There will be a meaningful role for LEPs to help deliver growth. Some 13% of the new rural development programme funds will be spent on growth-focused schemes. Some 5%—£177 million—will be allocated to LEPs through the growth programme, with LEADER and farming and forestry competitiveness being allocated around 4% each, or around £140 million.

Many hon. Members spoke about the delivery of rural broadband and mobile communications. Indeed, we must remember that the report was from the Environment, Food and Rural Affairs Committee, not the Welsh Affairs Committee, because so many hon. Members from Wales spoke. There was a certain commonality in the contributions we heard from across the United Kingdom on connectivity and the need to ensure that we get the injection of investment absolutely right. It is important for unlocking the potential of rural economies and communities. We know, for instance, that online small businesses, whether rural or urban, grow between four and eight times faster than their offline counterparts, and broadband allows more services to be delivered directly into the home. We heard how important that is in many contributions from both sides of the House.

The Government are investing £530 million to 2015 through Broadband Delivery UK. BDUK’s rural broadband programme, which is being delivered by local bodies, will deliver superfast broadband of 24 megabits a second and above to 90% of premises in each local authority area. The remaining 10% hard-to-reach areas will receive standard speed broadband of at least 2 megabits a second.

A number of hon. Members asked how representatives can access more detailed aspects of those programmes. I urge those who have concerns about how the programme is running in general to write to me or to the Under-Secretary of State for Culture, Media and Sport, my hon. Friend the Member for Wantage (Mr Vaizey). If there are specific issues, they should raise them with the local delivery bodies to ensure that their voices are heard. I think that BT, which has been mentioned, will welcome engagement with local representatives on how the programme will make a difference in those areas and what the expectations should be.

Under the rural broadband programme, the pace of progress is accelerating, as 42 out of 44 local projects are contracted, which accounts for 98% of the Government funding. We are currently connecting 10,000 rural properties a week. It is anticipated that the figure will rise to around 25,000 per week by the spring and 40,000 per week by the summer.

My hon. Friend the Member for Thirsk and Malton talked about the smaller rural community broadband fund and asked what progress DEFRA was making with delivering the scheme. We have approved five projects, starting with Rothbury in Northamptonshire, which got its first live cabinet in time for Christmas—the Under-Secretary of State for Environment, Food and Rural Affairs, my hon. Friend the Member for Camborne and Redruth (George Eustice), was there at the time. We continue to work hard with BDUK, local bodies and community groups to develop the remaining projects. Local authority-led projects have until 28 February to complete their applications. Of course, there are important things to consider to ensure that we get the best value for money in all those projects, so we need to consider each one carefully. Universal coverage of 2 megabit broadband is expected by 2016.

I will turn to local government finance settlements. The Committee, and indeed many hon. Members, highlighted their concerns about the system for calculating local government finance. Addressing the needs of rural and urban authorities is a difficult balancing act. As my hon. Friend the Member for Thirsk and Malton pointed out, I have been very much engaged in that from the Back Benches and continue to be in government, talking with colleagues, communities and local government about how the funding formula works and the implications for rural communities.

The Efficiency Support for Services in Sparse Areas grant of £8.5 million during 2013-14 helped the top quartile of rural authorities by sparsity of population. The Government will be providing further support worth £9.5 million so that the most rural local authorities can drive forward efficiencies in their areas. That is an increase on the grant paid for this purpose in 2013-14, and it offers further protection. Let me be clear, however—I hope that my hon. Friend would not expect me to say anything else, given my past interest in this area prior to coming into Government—that we need to change the approach towards assessing the longer-term funding needs of rural local authorities, and we must bear that in mind as we move forward. We need to consider how we support rural local authorities in increasing their income from business rates retention, and we need to develop a longer-term solution to supporting the transition.

On rural-proofing, I want to leave the House under no illusion. The Government take rural-proofing incredibly seriously, and my ministerial colleagues and I champion it strongly across Government. We are supported in that role by DEFRA’s centre of rural expertise, the rural communities policy unit, which was mentioned extensively in the report. Lord Cameron’s review of rural-proofing will report separately from what we are doing in Government. In a new element, all Government Department annual reports and accounts will report on their rural-proofing activities. It is very important to DEFRA that we have that level of engagement in reporting back, and I welcome it. At our last count, we were actively assisting other Departments with over 60 different policy areas to ensure that rural dimensions are being appropriately and proportionately considered. Importantly, we do not do this in isolation from the rural communities and businesses we serve. I am grateful to the EFRA Committee for recognising DEFRA’s comprehensive engagement framework with key rural stakeholders and civil society groups and representatives.

I should like to highlight some particular examples of this. My hon. Friend the Member for Thirsk and Malton mentioned education funding. The Government recognise that in some areas, particularly where schools are small, it is unreasonable to require pupils to travel long distances to alternative schools. That is why, following a review of the funding arrangements conducted with DEFRA’s rural communities policy unit, the Department for Education announced in June that it would allow local authorities to use a new sparsity factor when allocating funding. The Government have made it clear that the sparsity factor will be kept under review to consider whether adjustments need to be made in 2014-15 and as we move towards a national funding formula in the longer term.

[Bill Wiggin (North Herefordshire) (Con)]

All the aspects that the Minister has mentioned so far will really help rural communities such as my constituency. On school transport, the Government have been generous in funding new places in rural schools, but the local authority has cut the transport budget allowing people to take advantage of those new places. Is there anything he can do to allow county councils to use that money to ensure that children get to school safely?

[Dan Rogerson]

Local authorities have a statutory role in the provision of school transport, but there are a number of other ways in which they can engage with the wider transport infrastructure in their areas to provide opportunities not just for school transport but for all the other vital forms of transport that we have been debating.

I agree that providing affordable homes is crucial in allowing rural economies to grow and welcome the fact that this Government are investing in affordable housing. When the hon. Member for Ogmore discussed this, he did not say that under the previous Government the number of affordable socially rented homes that were available fell, a trend that this coalition Government will reverse through the investment that we are making. It is important to recognise that that applies in rural areas as well as in urban areas. The Government support rural exception sites, which, as hon. Members will know, are small sites that can be used for affordable housing in perpetuity, making a crucial difference.

The hon. Member for Banff and Buchan (Dr Whiteford) was the first speaker to refer to post offices and postal services in general—a very important matter. On 27 November, the Department for Business, Innovation and Skills announced a further £640 million for the post office network to complete its network transformation programme. That programme is not suitable for about 3,000 post offices. Those branches predominantly serve small, often remote communities, and they may be the last shop in the village. For the first time in post office history, the updated programme specifically allocates £20 million to this part of the network. As a Member of Parliament during the previous Government’s period in office, I saw what happened when their network review closed so many rural post offices and the effect that that had on those communities. We are now looking at opportunities to secure the network that now exists to make sure that we are not dropping back into that territory.

Returning to rural transport, which I mentioned briefly in reply to the hon. Member for North Herefordshire (Bill Wiggin), who is no longer in his place, the Government have distributed £20 million to rural transport authorities in England to support the development of community transport schemes, which provide services that are vital in many rural areas. We are funding more than 20 Wheels to Work schemes through the local sustainable transport fund. Those schemes enable many young people to access employment and training opportunities. We have protected the statutory entitlement to concessionary bus travel, ensuring that older people can maintain greater freedom and independence. As we stated in the Government response to the EFRA report, the Department for Transport has committed to setting up a monitoring and evaluation framework to assess the changes to the bus service operators grant.

The issue of fuel was regularly raised, with regard to transport fuel and the fuel duty discount. I am pleased that hon. Members across the House acknowledged what the coalition Government have done in opening the door to the concept of recognising rurality and the challenges faced in relation to fuel prices. Many rural communities aspire to explore whether the scheme is a good fit for them, with processes that are appropriate for their areas. Several Members, particularly those from west Wales, suggested that it could operate slightly differently. I am sure that if they write to my colleagues in the Treasury about how they think it could be changed, their contributions can be borne in mind.

Several hon. Members talked about domestic fuel and the people in communities in rural areas who are off the gas grid. We are working with the Department of Energy and Climate Change to support the promotion of buying groups to bring down costs for gas and oil. On winter fuel payments, as part of the ministerial round table on heating oil and liquid petroleum gas, we are working with DECC and the Department for Work and Pensions to look into bringing payments forward. A number of hon. Members raised that issue.