Rural Affairs

Simon Hoare Excerpts

Monday 11th November 2024 Commons Chamber

[Steve Reed]

The vast majority of farmers will be unaffected by the changes, so that point will not apply.

We are also rapidly releasing £60 million to support farmers whose farms have been devastated by severe flooding. That is £10 million more than the previous Government were offering and, unlike their fantasy figures, we have shown where the money to be paid out will come from. Flooding is just one of the many challenges that farmers have faced over the past year.

[Simon Hoare (North Dorset) (Con)]

rose—

[Steve Reed]

Perhaps the hon. Gentleman wants to allude to another of them.

[Simon Hoare]

The Secretary of State has painted the most rosy picture. Why does he think that no one in the farming community can see it or share it?

[Steve Reed]

I have not had time to paint much of a rosy picture yet, because I have only just started and I am taking quite a lot of interventions, but I hope I can allay the concerns of some farmers in the comments that I hope to make during my speech.

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[Steve Reed]

As I have said, the consequentials will work in the way in which they always work. Devolved Administrations have some discretion as to how they will spend the money that is made available to them, but of course I, along with my right hon. Friend the Secretary of State for Northern Ireland, am more than happy to engage with, for instance, the Northern Ireland Department of Agriculture, Environment and Rural Affairs to discuss those points.

The huge investment we have secured in the sustainable farming budget will also help us to move to a zero-waste economy, as we end the throwaway society and reuse materials rather than sending them to landfill.

[Simon Hoare]

Will the Secretary of State give way?

[Steve Reed]

No. The hon. Gentleman has already had his chance to ask a question.

The investment will help us to boost food production as we move to models of farming that are not only more environmentally sustainable but more financially sustainable, and it will help nature to recover—here, in what has become one of the most nature-depleted countries on earth, with nearly half our bird species and a quarter of our mammal species now at risk of extinction.

Our plans to upgrade our crumbling water infrastructure will help to bring in tens of billions of pounds of private investment, and will create tens of thousands of well-paid jobs in rural communities throughout the country. We will reform the planning system to build the affordable homes that our rural communities so desperately need, while also protecting our green spaces and precious natural environments. We are investing £2.4 billion over the next two years in the flood defences that the last Government left in such an unacceptable state of decay and disrepair.

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[Victoria Atkins]

I completely agree with right hon. Lady. If the Secretary of State would like to intervene on me, he can answer her intervention. Answer came there none.

[Simon Hoare]

My right hon. Friend is a very clever former Treasury Minister and I am not, so perhaps she can help me to reconcile these two statements. In essence, and in true Harold Macmillan phraseology, the Secretary of State told us that farmers have never had it so good, yet his advice is that they will have to learn how to do more with less. I cannot make those two things add up. Can my right hon. Friend?

[Victoria Atkins]

No. What is more, the NFU, the Tenant Farmers Association and the Country Land and Business Association cannot make them add up either.

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[Tim Farron]

I think it will. Many farmers earn less than the minimum wage, and although they own property worth an awful lot of money, it is worth nothing to them, really, because it is their business. As a consequence of the changes, someone will own that farm, but it will no longer be a family; it will be some huge estate, or a private equity firm. The Government must listen on that issue.

I will turn my thoughts to funding elements in the Budget. I have found a very rare creature: a Brexit benefit. Leaving the common agricultural policy, and moving towards environmental land management schemes—set up by the previous Government, adopted by this one, and supported in principle by the Liberal Democrats—was an opportunity to make things better for farmers and our countryside. However, the previous Government botched things completely by failing to fund the projects properly, and by taking away basic payments at a regular and dependable rate, and not replacing them quickly enough with a new payment under the environmental schemes. That has massively reduced our ability to feed ourselves. The agricultural policy of the last Conservative Government, which has, so far, been adopted by the current Government, is absolutely insane, in that it disincentivises the production of food. That is ridiculous, and I hope that the new Government look actively at putting it right.

The effect of the £350 million underspend by the previous Government was not felt in the pockets of the big landlords, who were able to get into the schemes relatively easily; it was smaller family farms that suffered, yet the Budget speeds up the rate at which we are getting rid of the basic payment, which is deeply troubling. A reduction of at least 76% in the basic payment for those still in the system will be devastating for their businesses. People do not know what to do next; they may end up backing out of environmental schemes and farming intensively in order to pay the rent and keep a roof over their family’s heads.

It is worth bearing in mind the impact that the measures will have on the mental health of farmers. Let us put ourselves in their position. A fifth or sixth-generation tenant farmer or owner-occupier might see that they could lose the family farm because of the Conservatives botching the system and the Labour Government’s cliff edge. Do not put people in that position. Give them time to move into new schemes, rather than kicking the legs of the old system from underneath them.

Let me say a word about trade deals before I talk about other important rural issues. The previous Government absolutely threw British farmers under the bus in the deals that they cut with New Zealand and Australia. We must of course be pragmatic about relationships with the incoming Administration in the United States, but in any deal with the US, I urge the Secretary of State not to do what the Conservatives did in their deals with Australia and New Zealand. Protect British farmers and protect our values, please.

[Simon Hoare]

The hon. Gentleman and I shared very similar concerns about the trade deals with Australia and New Zealand. We feared that imports would swamp the market, but fortunately that has not come to pass; it has all been swallowed up by an ever-voracious Chinese and south-east Asian market. New Zealand lamb producers have actually reduced the size of the flock per capita. What we worried about has not come to pass, and we should be grateful for that.

[Tim Farron]

Well, I think it has come to pass, to a degree, in the sense that we allow equal access to our markets to those producing animal products—meat and other food products—who have lower standards than British farmers. That is just not fair; it is not a level playing field. The American market is far bigger, and my great fear is that doing a similar deal with Donald Trump will do much more harm to British farmers. I hope that the Secretary of State will be mindful of that.

Let me move on to other issues that affect our rural communities. In a constituency such as mine, the average house price is 14 times the average household income. We have a 7,000 household-strong waiting list for social rented housing. I mentioned earlier the collapse of the long-term private rented sector into Airbnb, which has a huge consequent impact on lives. I can think of a particular couple—she was a teaching assistant; he was a chef—who were kicked out by the landlord, who wanted to go with Airbnb. As a result, they had to take their two kids out of school, give up their jobs and leave the area completely. There were hundreds and hundreds of such cases, and the previous Government did not intervene until it was far, far too late.

The impact of the housing crisis in rural communities across our country is not just deeply upsetting and devastating for families, but damaging to our workforce. Sixty-six per cent of lakes and dales hospitality and tourism businesses are operating below capacity because they cannot find enough staff. One in five care jobs in Cumbria is unfilled because of a lack of permanent workforce.

Another matter that the previous Government refused explicitly to tackle, and which I hope this Government will tackle, is the scourge of excessive second home ownership in Britain’s rural communities. People own those bolthole homes but barely live in them. The excessive number of second homes in our communities means that we lose our schools, our bus services and the very heart of those communities. Will the Secretary of State consider doing what the Liberal Democrats have proposed for years by making second home ownership a separate category of planning use, so that planners have the opportunity to protect their communities?

On health, so many of the issues that we face in rural communities relate to distance from care and people’s ability to get where they need to be in time. That also means that we have efficiency issues. A GP serving a huge acreage may not be very efficient with their relatively small list, but we desperately need them. Will the Government consider our proposal for a strategic small surgeries fund to keep vital GP surgeries open in rural communities?

We must also bear in mind that some of the longest and most unacceptable waiting times for cancer treatment are in rural communities. We very much welcome the £70 million for radiotherapy that was announced just before the Budget—much to Mr Speaker’s chagrin—but will the Secretary of State bear in mind that 3.5 million people in the country, most of them in rural communities, live in radiotherapy deserts? Half of us will have cancer at some point in our lives, and half of those people should receive radiotherapy treatment, yet barely a quarter of them do. One reason for that is that communities such as mine are just too far from that treatment. Will the Government ensure that some of that money goes towards providing satellite units in Kendal and other parts of rural Britain.

On public transport, it is right to say that the Government have made a poor decision in increasing the bus fare cap. That will have a huge impact on low-wage workers, particularly in rural parts of the country. Frankly, a £3 cap—or even a £2 cap—is a fat lot of good if there is no bus to use it on. I encourage the Secretary of State to devolve to local authorities the power to run their own bus services, and not to enforce local government reorganisation in order to achieve it—just give them those powers now.

I am coming to the end of my remarks, I promise. On broadband, the new Government—and the previous Government—have made good progress on Project Gigabit, and we ought to be grateful for that, but they must be aware that there will always be places that the project will not reach, including four in my constituency: Warcop, Hilton, Murton and Ormside. Those places are in deferred scope and, currently, are likely to get no service whatsoever. Will the Government consider de-scoping those places so that they can access vouchers? That would allow B4RN, our wonderful local not-for-profit broadband company, to step in and do the job.

You will be delighted to hear, Madam Deputy Speaker, that this is my final point. It is worth pointing out that under the Conservatives, 45% of water bill payers’ money went into the pockets of shareholders in dividends, into bonuses or into debt financing. Meanwhile, half a million instances of sewage dumping in our lakes and rivers happened each year. We welcome some of the Government’s proposals to clean that up, but without radical reform of the industry—which they are not proposing—that problem will not be solved in a long-term way.

In conclusion, our rural communities have been taken for granted and deeply damaged by a Conservative Government; our memories in rural Britain are very long, and they will not be excused that failure. We also see a Labour Government whose early start is not promising for our rural communities. As such, we in the Liberal Democrats have made a deliberate choice to be the voice of rural communities. We will take up that mantle with humility and passion, because a Britain that cannot feed itself is a Britain that will fail.

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[Simon Hoare (North Dorset) (Con)]

Some 88% of my constituency is hill, wood or farmland. It is the “Vale of Little Dairies”, in Thomas Hardy’s phrase. It is a mosaic of farms, both family-owned and estate and many of them tenanted, punctuated by villages and market towns. I would willingly swap my inbox with that of the hon. Member for Shrewsbury (Julia Buckley)—who is no longer in the Chamber—because her constituency, like those of many Labour Members, seems to be full of farmers who are, with a spring in their step, welcoming the wonderful, halcyon field that the Government are offering them.

Let me make again a point that I made in an intervention earlier. I am still at a loss as to how farmers are supposed to be rejoicing, as we are told they are by so many Labour Members, with all this record investment and expenditure in rural areas, when they are being told by the Secretary of State that they must do more with less. You can have one or the other, Madam Deputy Speaker, but you cannot have both.

Many of my right hon. and hon. Friends have spoken very authoritatively about the taxation changes. I am fundamentally opposed to what the Government are trying to do because of the damage that it will cause, in the long term, in constituencies such as mine and many others—particularly, but not exclusively, in the south-west. It also concerns me that many Labour Members have been told that the money raised will give them an oncology centre in every constituency, and that other wonderful things are going to happen. In fact, this is just a round of drinks when it comes the amount of money that it will generate in taxation for what may be required by the health service or by education, so I say to the House, “Please do not fall for that old chestnut.”

The Minister and I worked very closely together on the Agriculture Act 2020 and on trade issues. Now is the opportunity—I have been very clear that we had opportunities over the last few years, but they were not delivered for a whole variety of reasons, including covid, Ukraine and other things that we all know about—to have some serious, grown-up thinking about rural-proofing policies, because, as others have mentioned, the delivery of public services in our rural areas is more expensive. Our populations are sparser, and our communities are further flung. As the hon. Member for North Shropshire (Helen Morgan) said, we do not have big teaching hospitals and so forth. The Home Office needs to give proper consideration to rural-proofing the funding formula for rural policing, and likewise with the fire service. We have the rural services delivery grant, and I hope that the Minister and his departmental colleagues are strongly making the case to both the Treasury and the Ministry of Housing, Communities and Local Government that the rural services delivery grant is vital for enabling rural local government to deliver the services that our communities are looking for.

In an earlier contribution to the debate, reference was made to the entirely urban-centric rubric of Environment Agency funding decisions when it comes to flooding. It effectively boils down to how many chimneys benefit from the investment. The larger the community—by definition, the more urban or metropolitan—the more likely they are to be successful in a bid, compared with a scheme that will benefit many hundreds of acres of prime farmland but possibly only 200 or 300 households. There needs to be rural-proofing.

[Sir Alec Shelbrooke]

My hon. Friend is hitting the nail on the head. In my speech, I mentioned that Tadcaster is unable to get rid of the surface water. That affects a few businesses, but the whole town is destroyed by those businesses not being able to reopen and having insurance problems, despite the fact that there are not enough houses under the Environment Agency’s plan. The point that the Environment Agency has to take notice of is, where does the economy build from?

[Simon Hoare]

My right hon. Friend is absolutely right. Then we can think about the impact on insurance premiums, which will close businesses and put householders out of the insurance market, with the exception of the scheme that the previous Government introduced. All these things have knock-on effects.

I think the Minister and his departmental colleagues have sympathy with the point I want to make. Across Government—it is not just his Department—the funding formula and the rubric that decides where these things go need to have a far more digital, contemporary account of the challenges in delivering services in our rural areas. It is an issue that I have banged on about in this place in the nearly 10 years that I have served my communities of North Dorset, and I will continue to talk about it because that is the right thing to do. I hope that there is sympathy for that argument on both sides of the House.

Many Members have referred to access to housing. A lot of my constituents have invested in rental properties and so on, but we all know that quite a lot of housing in rural areas is older. It could be in a conservation area, it could be listed or it could be thatched—it could be all of those things. People are trying to meet the EPC regulations for rental properties, which is putting huge, artificial and urban-centric pressure on the rural rental housing market.

The Prime Minister recently launched a very welcome initiative about skills. Again, I urge that a bespoke channel of work is carved out that looks at how we skill young people in rural areas. We suffer from a young person’s diaspora too often: the elderly retire to an area, and the young move away. Property prices go up, and people will only come back as and when they able to inherit something—that is, of course, on the presumption that the Treasury has not taken everything by that point and that the only thing they are able to inherit is a very small part of the family grave plot, although that might be taxed as well. I would urge a ruralisation of this area.

I will mention two other things, both of which begin with “d”. Hon. Members on both sides of the House have mentioned dentistry. There have been too many nascent plans for a revival and renaissance of dentistry over the years. For reasons that I cannot understand, none has come to fruition, save for the entirely skewed and bogus funding formula for dentists. All Governments wed themselves to doing something; I just hope that something will be done. The other issue is driving tests. It is very hard to get a driving test in rural areas, which deprives young people of access to work, and to colleges and learning.

In this debate on rural affairs, it is not just about the proposals for changing the way farmers are taxed. It is about the whole mosaic and rich tapestry of rural life, of which this Government currently find themselves the custodians. Historically, the Labour party has always been urban-centric, but it now has some rural seats. I hope that the Front Benchers listen to rural Members, hear the concerns that we, too, are hearing, and actually make some progress towards making life in our rural areas a little better.