Productivity: Rural Areas

Nusrat Ghani Excerpts

Wednesday 14th October 2020 Westminster Hall

[David Warburton (Somerton and Frome) (Con)]

It is a pleasure to serve under your chairmanship, Ms Ghani.

I pay tribute to my hon. Friend the Member for North Cornwall (Scott Mann) for raising this critical issue. For me, there is an answer to the productivity gap, and it is technology and infrastructure, as we have heard. Even before lockdown, a quarter of the rural population worked from home. With small and medium-sized enterprises being the engine of the rural economy, digital connectivity is vital, but Somerset is sprinkled with areas that have unreliable and intermittent connectivity.

New investment in broadband in those dead zones is of course great news, and the shared rural network agreement is another step forward, but there is still a lingering belief that the rural economy is purely focused on agriculture. Of course, we have a thriving industry that is based on agriculture—in my constituency, the fabulous cheese makers of Wyke Farms, Montgomery Cheese, Godminster and Barber’s, and innumerable cider manufacturers—and they are all vital to the local economy, but it is equally important to stoke the fire of businesses such as the logistics and supply chain company Vallis Commodities in Frome, the operations of which depend on Somerset’s physical and digital infrastructure.

Investment in road—I dare not mention the A303 again —in rail and in digital infrastructure will pay dividends for decades to come. Just stick in the money and sit back and watch as the resourceful and dynamic people of the west country beaver away in effect to give it all back with interest. If the shared prosperity fund is to achieve its purpose of smoothing inequalities between different communities, let us do that within a framework that balances protecting the bucolic glory of our small towns and villages while equipping them with the tools that they need to flourish.

[Ms Nusrat Ghani (in the Chair)]

A mouth-watering contribution.

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[Miriam Cates (Penistone and Stocksbridge) (Con)]

I congratulate my hon. Friend the Member for North Cornwall (Scott Mann) on securing the debate.

Rural productivity is an issue of great importance to my constituents in Penistone and Stocksbridge. I recently visited a dairy farm in the constituency where farmers are working hard to improve productivity by introducing new technologies that will increase milk yields. Such technologies require the collection and processing of real-time data from cattle, and this in turn requires reliable, high-speed and affordable broadband. All businesses are becoming more reliant on broadband, and there is now a direct relationship between internet speed and how much productive work can be done. In the rural broadband survey that I am currently conducting in my constituency, however, nearly 60% of respondents tell me that their broadband is slow or very slow, so it is hardly surprising that rural productivity is falling behind.

Businesses and people working from home do not require broadband just for sending emails or online shopping. The nature of work has changed, and high-tech solutions and high-quality virtual meetings require a high-quality connection. There are no easy answers to these problems, and we need community power as well as support from central Government in order to seek innovative local solutions.

Of course, broadband speeds are not the only factor limiting rural connectivity. Poor bus and train services restrict opportunities to travel to well-paid work in the local area, in stark contrast with vastly better services in urban areas. Again, I believe there is an opportunity for community power to improve transport connectivity. South Pennine Community Transport, a fantastic local community interest company near my constituency, is trialling a new regular bus service between rural villages and Stocksbridge town. The service will connect people to jobs and leisure services and could be financially self-sustaining in under two years. Many millions of people live in rural communities in this country, and it is not just for economic reasons that we need to level up. Rural life, culture, tradition and values are a valuable part of this country’s history and our future, and we need to make sure that young people are able to stay in those communities and have productive jobs.

[Ms Nusrat Ghani (in the Chair)]

I thank Mr Warburton for swapping seats with Ms Jones so that she can contribute.

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[Richard Drax (South Dorset) (Con)]

It is a pleasure to be called by you, Ms Ghani. I thank my hon. Friend the Member for North Cornwall (Scott Mann) for introducing this great debate on our countryside. I have two minutes, so it has to be a list, for which I apologise to the Minister. I suspect that the Government have heard a lot of it before.

I have two seaside resorts in my constituency: Swanage and Weymouth—and the Isle of Portland; I must never forget that. We are heavily resort-based, and we need some love and investment. We have large pockets of deprivation in my seat of South Dorset. Although we are extremely grateful for the huge sums of money we have received for the Weymouth Pavilion, Swanage railway and the Tank Museum, adding up to about £1.25 million from various sources, I am afraid that we need more.

I initiated a business panel, because I think business people are better at promoting what we need than politicians, because a lot of my constituents do not agree with what I say, understandably. This panel is now looking at what we will need for the next 30 to 50 years, in which I would include—I will push the Government hard on this—a road north. We cannot get out of Dorset and Hampshire; we have to go to the A34. This is utter madness. We need a relief road in Weymouth, so that the port can expand, which it is already doing, creating huge numbers of jobs.

As colleagues have said, we need better connectivity with broadband and mobile, which is currently appalling. Weymouth College is the only place where young people in my seat can aspire to move on to better careers, university and all the things that are so important for the young. We need more money to bring this college, which is doing a fantastic job, up to the standard that is required to deliver that opportunity to the young.

Finally, a forgotten element is the outdoor education centres. I know that is not the Minister’s responsibility. Schools are not sending children there. They should be allowed to because they are safe and bubbled, and children should be able to enjoy a day out in the countryside.

[Ms Nusrat Ghani (in the Chair)]

We now come to the Scottish National party spokesperson. Mr Doogan, you have a joyous five minutes. You do not have to use it all.

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[Wes Streeting (Ilford North) (Lab)]

It is a pleasure to be here for your debut in the Chair, Ms Ghani. I congratulate the hon. Member for North Cornwall (Scott Mann) on securing this very good debate. I also congratulate all those Members who were elected for the first time at the most recent general election—not for the election victory, I hasten to add; we would rather that had not happened—on having already learned the fine parliamentary art form of squeezing a five-minute speech into two minutes. As a result, we heard a wide range of important points.

When I read the room, I was not sure about whether I should have more trepidation about addressing this gathering as a Labour MP or as a London MP. I want to explain why both of those things are complementary to what we have just heard. First, the regional imbalance in the UK economy is not working for London and the south-east, either. This city—one where I am a suburban MP—is overheating and overcrowded. It is in the interests of London and the south-east that we are rebalancing the economy across England and the rest of the UK. The concentration of power, wealth and opportunity in London and the south-east does not work for London, for the rest of England or for the rest of the UK. I hope we can achieve genuine consensus about how we redistribute power, wealth and opportunity from London and the south-east to the rest of the UK to create a genuinely balanced economy that benefits everyone and strengthens our country as a whole.

The Opposition not only not disagree with so much of what we heard in the debate but strongly support it. We understand the diversity of the rural economy in this country. Jobs and businesses in farming, forestry and fishing are important for the people who work in them, the communities who benefit from them and, of course, the consumers who enjoy them too. However, they are not the grand total of rural businesses; in fact, 85% of rural businesses are unrelated to farming, forestry and fishing. It is really important that public policy makers, whether in Government or around the Westminster village, understand that point and think about the diversity of the rural economy and how we support those businesses to succeed.

It is also a really important point that, in the context of the productivity challenge we have in the economy as a whole, rural economies in the UK are less productive. The hon. Member for North Cornwall made the point well that that reflects not on the workforce but on the conditions in which those businesses operate. It is also true that employment is generally higher in rural areas but pay is lower. We heard some illustrations of why that was, with people holding down a number of jobs—in fact, running a number of businesses—to make ends meet. That point was made powerfully during the debate.

What are the conditions in the wider environment that are causing some of these challenges? Of course, some challenges arise out of business size and density, and there are not the same conglomeration effects as in urban areas.

We have heard contributions on the challenges of accessing finance and the closure of bank branches. We ought to think, in the context of the connectivity that we have had to create during the course of covid, about how to better connect rural businesses with each other. We need to make sure that we are investing in our people, which is about access to skills and making sure that people do not need to leave the places where they grew up in order to have a successful career or to build a successful business. It is important that we invest in infrastructure, whether that is buses, rail or other forms of public transport. There are also ongoing issues of digital connectivity—this country is a digital laggard. We only have to look at the report of the Environment, Food and Rural Affairs Committee to see that we are so far behind other European countries on digital connectivity.

Notwithstanding all the other challenges that our country faces at the moment, I really hope that, as we think about how to break the back of this covid crisis, we think about how we build a better, stronger, more resilient economy beyond the crisis, making sure that we invest in rural communities and their people, businesses and infrastructure. I hope we can build a cross-party consensus in this area to generate good ideas for the next Labour Government to take forward.

[Ms Nusrat Ghani (in the Chair)]

If the Minister can conclude by 5.43 pm, that will give enough time for the hon. Member for North Cornwall (Scott Mann) to wind up the debate.