UK Shared Prosperity Fund: Rural Areas

Jim Shannon Excerpts

Wednesday 11th May 2022 Commons Chamber

[Jim Shannon (Strangford) (DUP)]

I congratulate the hon. Lady on securing this debate. As the MP for the rural constituency of Strangford, this subject is close to my heart. I look forward to the Minister’s response.

Does the hon. Lady agree that many rural businesses would be successful online if only they had more support specifically designed to help those in rural areas and that some of the shared prosperity fund should be allocated for specialists in rural business to provide training and support?

[Alicia Kearns]

I could not agree more. Rural businesses also require more support to access the broadband they need to establish and grow.

I welcome the UK shared prosperity fund, which is a central pillar of our levelling-up agenda. It rightly focuses on local stakeholders and letting local people have their say, but I would like to raise the concerns expressed to me by Harborough District Council, Melton Borough Council and Rutland County Council.

First, rural districts and local authorities have been prescribed relatively small proportions of funding. That is not a surprise to many of us, but I hope it can be rectified. Secondly, local flexibility risks being constrained by the fund’s pre-specified outcomes. Finally, the yearly spending requirements limit our ability to maximise investment spend over the fund’s duration.

For the shared prosperity fund to be most successful, we have to focus on long-term investments, but a closer inspection of the 2021-22 Red Book shows that there will be no dedicated, ringfenced funding for rural businesses, which will hit communities like the hon. Gentleman’s and mine hardest. Shared prosperity begins with the recognition that different areas have different needs, and my good friend the Minister knows my constituency of Rutland and Melton and the Vale of Harborough villages very well. In many ways, our communities are the same. They are idyllic and have an enormous sense of community. Their big-heartedness and friendliness is heartfelt and deep, and we have the picturesque rolling hills of England. Uppingham, one of my three towns, was voted the best place to live in the east midlands, and Melton was voted sixth.

We have industries that people might not associate with rural areas. Samworth Brothers makes the majority of sandwiches in this country, and Arnold Wills makes the majority of belts. We have the Hanson cement quarry, Mars Petcare, C S Ellis, which is an amazing national haulage company, and Belvoir Fruit Farms, and of course our stilton and pork pies are enjoyed around the world.

We love and want to protect our rural way of life, but we need support. Delivering services in rural areas is more expensive, rural economies are more susceptible to skills shortages, our physical and digital connectivity lag behind other parts of the UK and the geographical spread of our communities can obscure the nature of the issues that people face.

The relative affluence of some parts of Rutland and Melton means that some pockets of deprivation are too often overlooked by Government policy, which is to the detriment of rural communities. Rutland ranks in the bottom 10% of the entire country for social mobility, and I believe rurality plays a large role in that, alongside insufficient Government support. I know that the Secretary of State is especially interested in tackling these pockets of deprivation, and that is where a rural deprivation unit within his Department would make a fundamental difference. Such a unit would help it consider and understand the complex nature of rural inequalities and make sure that local investment plans take it into account. It would provide a renaissance for our rural communities.

I come to local government funding, an issue that my hon. Friend the Member for Loughborough (Jane Hunt) rightly raised. For too long, communities in Leicestershire and in Rutland and Melton have been coming second. Despairingly, Leicestershire is the lowest-funded county council per head in England, while Rutland County Council is expected to raise significantly more revenue through local taxation than other local authorities in England. The east midlands has the lowest level of public investment of any region in England. How can we have shared prosperity when long-term funding settlements are so unfavourable to rural areas? This is a bold and ambitious agenda, but how can our councils do more with less? We desperately deserve the funding we need.

Rutland County Council has been an effective unitary authority for many years and we are proud of our independence. We ranked No. 1 on the Impower index as the highest performing council on adult social care in the country, but we have forecast a budget gap for 2023-24 onwards. We are required to raise a shocking 80% of our revenue through taxation, whereas the national average for councils is just 60%. That means that the council tax for a band D property in Rutland is £2,200 a year, and we are talking about a council in the worst 10% for social mobility in our country. We receive £331 less Government funding per household than other councils and we have the highest council tax in the country. That is not good enough and it is not fair.

Let us then look at the position for Leicestershire County Council, in which the Melton, Vale and Harborough parts of my constituency sit. As I mentioned, if LCC was funded at the same level as Surrey, it would have £104 million more to support people across Leicestershire. This situation cannot be right, and we need fair funding. I am pleased to have secured productive meetings between Rutland County Council and the relevant Minister. I hear and hope that future funding settlements will be provided earlier to allow for better local planning, but they also need to be richer. My Leicestershire colleagues and I have worked tirelessly since our elections to try to get the Department to pay heed to this unfair imbalance. I know that it is not easy or straightforward, and that budget would be required, but we must rectify these injustices. I have raised the issue of them time and again, and I hope the Department will pay attention to them.

Let me move on to the issue of rural transport. Strong transport links are all the more crucial in rural settings, and it is fantastic that the shared prosperity fund is taking transport into account. After 40 years of promises, hope and let-down dreams, and through working with the Minister’s Department, the Melton Mowbray distributor road is finally being built in my constituency. It is going to transform the town centre of Melton and bring £160 million of investment into our amazing town. However, we have wider rural transport concerns that continue.

Community renewal is highly dependent on good transport services, but we have had recent reductions in all of our transport services, which threatens to undermine our rural growth. In Melton, the No. 19 bus between Melton and Nottingham has been cut, not only because it was being under-used, but because it would no longer be financed. Workers and students are no longer able to get from rural Melton to Nottingham for work or for educational opportunities, and businesses are suffering, as, in particular, are those with special educational needs.

In rural areas, those with SEN suffer so often because it is so difficult for them to access the services they need. I am hopeful that I can mitigate some of the loss of that bus service with the reinstatement of the train service from Melton to Nottingham; currently, there is no direct service and we have to go through the constituency of my hon. Friend the Member for Loughborough and through Leicester. The Government kindly provided £50,000 of funding to look at my proposal to reopen it. I politely ask the Minister to remind his colleagues at the Department for Transport that we are waiting to hear back on our bid, having made our business case.

In Rutland, Centrebus is only continuing the Rutland Flyer bus and the 747 routes after demanding additional subsidies from Rutland County Council. Given what I have just said about our funding issues in Rutland, Members can see why having to subsidise a bus route is an additional burden that the council cannot take on. The Government have promised to bring forward new arrangements for rural transport in the summer, and I urge them to act now to support faltering rural transport services, because that will provide a boost.