Rural Economy

Lord Harlech Excerpts

Thursday 19th December 2024 Lords Chamber

[Lord Harlech (Con)]

My Lords, it is a pleasure to follow my noble friend Lord Caithness. I declare my farming and land management interests in Wales and that I am a member of the CLA and the Conservative Environment Network. I congratulate the right reverend Prelate the Bishop of St Albans on securing this important and timely debate.

Much has rightly been made, including by me, on the impact of October’s Budget on the rural economy and, in particular, family farms and rural businesses. However, today I will make my remarks on policies that I believe can grow the rural economy. A lack of housing and opportunities forces young people from rural communities and reduces demand for local services. This situation is only worsened by an urban-rural digital divide, which holds back rural businesses’ ability to grow. The Government were elected with a mandate to grow the economy, and this must include rural areas.

I know from my own experience in Defra that the rural economy is hindered by poor cross-departmental working. Ministers and officials from other departments assume that Defra has sole responsibility for the rural economy. In reality, Defra does not have the economic levers to unlock the countryside’s potential by itself. That power lies in other departments and, increasingly, local authorities, as we heard in the Statement earlier today. Much better cross-departmental working is necessary to ensure that economic policies are designed to generate growth in the rural economy. The Government have thus far failed to address this issue, which is most evident in the industrial strategy Green Paper’s lack of focus on rural issues.

The poor delivery of the rural England prosperity fund by local authorities illustrates the effect of a lack of understanding of the rural economy on devolution and localism in rural areas. There have been breakdowns in communication and misunderstandings of the rules and guidelines of the REPF, and some local authorities have failed to engage with external stakeholders. A future REPF needs to encompass better engagement between central government, local authorities and external stakeholders, and better promotion of such funds to small businesses that could benefit from them.

As we have heard from several noble Lords, the primary barrier to rural economic development is the planning system. In its current state, it does not appreciate the improvements that small-scale development can make to the viability of rural villages. In planning terms, these villages are often deemed “unsustainable”, creating a spiral of decline. In the plan and decision-making process, weight must be given to development that will improve the sustainability of a settlement, whether through the provision of new homes, services or facilities. The Government should follow the mantra of a small number of homes in a large number of villages.

To develop rural planning policy meaningfully, the Government must introduce permission in principle for rural economic development. This would encourage planning applications by reducing the risk of high financial input without the guarantee of consent. The Government should also enable the repurposing of redundant agricultural buildings and sites. Planning applications to repurpose these sites are often rejected, as they are not deemed to be “sustainable development”. In many cases, the development of these sites would lead to economic growth and, through diversification, provide a much-needed boost to a farm’s profitability.

As the right reverend Prelate, the noble Lord, Lord Wigley, and my noble friend Lord Caithness described, the lack of access to sufficient broadband connection is a massive barrier to rural productivity. Mobile connectivity in rural areas continues to be an issue, with the previous Government having allocated £500 million for the shared rural network to fix not-spots in mobile coverage. Will the Minister commit to publishing a road map to improve rural connectivity and provide transparency over how public funds have been allocated?

The proposed £100 million cut to the nature-friendly farming budget is estimated to reduce the amount of nature-friendly farmland by 240,000 hectares in England. This will present significant issues for farmers’ finances, food security and the UK’s ability to deliver its legally binding target to halt species decline by 2030. The Government must restore the nature-friendly farming budget to £2.8 billion in real terms and index it to increase with inflation over the Parliament. This would ensure that farmers have the confidence to adopt regenerative practices and help close some of the funding gaps to achieve our biodiversity goals.

The Government must change course, protect APR and BPR for all rural businesses, and extend them to farm businesses engaged in capital markets. This will ensure that farm businesses engaged in public and private agri-environment schemes can be passed between generations. It will also provide the necessary incentives to continue producing food while restoring farmland and naturally sequestering carbon.

I know how much the Minister cares for the rural economy and the countryside. I hope that she can champion it and stand up to other departments for what is right. I look forward to her reply.