Rural Communities
Debate between Simon Hoare and Sarah Dyke(2 weeks, 4 days ago)
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Sarah Dyke
As my hon. Friend would expect, I totally agree with him.
The Liberal Democrats want to ensure that British farmers operate on a level playing field and can succeed. That is why last year I introduced the Dairy Products and Dairy Farming Bill. Farm-gate milk prices have plummeted over the past few months; now, cereal prices are also under serious pressure. The Liberal Democrats are clear: we need fairness in the supply chain. When farming businesses fail, there is a knock-on impact on local hospitality—pubs, cafés, restaurants and hotels.
Somerset is a tourism region. It supports nearly 10% of all jobs and contributes more than £1 billion to the regional economy. Many of the fantastic hospitality businesses in Glastonbury and Somerton are under immense pressure as they face huge rates increases from April. Miranda contacted me today. She manages the White Hart pub in Castle Cary, and faces her rateable value going from around £19,000 a year to over £30,000 a year. Meanwhile, the British Institute of Innkeeping states that only one in three pubs are profitable, and warns that that could drop to one in 10 by April.
The hospitality sector already faces £4.5 billion in additional taxes due to increased national insurance contributions in the 2024 Budget. The Liberal Democrats have been calling for an emergency 5% VAT cut for hospitality, accommodation and attraction businesses until April 2027, funded by a new windfall tax on big banks. Combined with our policy to reduce people’s energy bills by removing the main renewables levy, we could put £270 back into people’s pockets, making it more affordable for them to heat their home, and allowing them to spend more on occasional extras. That would help to drive economic growth in rural areas, restore our high streets, and give the country a much-needed morale boost. It would also help rural areas to grow the economy.
Simon Hoare
I am grateful to my neighbour for giving way. I share her support for a reduction in VAT for our rural hospitality sector, but does she get the irony that such a reduction would be illegal if we were still a member of the European Union?
Sarah Dyke
There are many ironies, but the benefit of being in the European Union far outweighs that cost.
Moving on to homes, to help grow the economy we must ensure that rural areas have places for people to live in. In Somerset, newly built homes make up just 3% of all properties recently sold, with an average price 20% more expensive than the UK average. Rural house prices have increased by 57% since 2013, while wages simply stagnate, creating an affordability gap and contributing to a higher need for affordable housing in rural areas than in urban settings. As a result, many first-time buyers and key workers simply cannot afford to live in rural areas, making it increasingly difficult for rural local businesses to retain staff, reducing local spending power, and threatening the viability of our rural communities.
The Liberal Democrats are clear that both the private and social housing markets are too expensive and insecure, with current provision simply not sufficient to meet demand. People in holiday destinations should not have to face higher rents and housing shortages, especially when they are among the hardest hit by the cost of living crisis. The Tories would offer tax cuts on second homes, making it harder for people who want to live in an area where they work, or where their family is from, to own their own home. That evidences their failure to understand what life is really like in rural areas. As part of a fairer housing system, the Liberal Democrats would allow councils to increase council tax on second homes by up to 500% if there are housing shortages in their area.
The Liberal Democrats believe that the Government must recognise the pressure that they have put on rural communities over the past 18 months, whether it is through the family farm tax, the broken agri-environmental schemes, the lack of support for hospitality or the failure to provide affordable rural homes. We must remember, however, that these are not new problems. The Conservatives failed to make improvements for rural communities, and that is why they were kicked out of huge swathes of the rural south-west.
Oral Answers to Questions
Debate between Simon Hoare and Sarah Dyke(1 year, 9 months ago)
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Simon Hoare
Second most beautiful, I remind my hon. Friend. He makes an important point, representing as he does his constituents and the wider county of Cornwall, and an interesting suggestion. Strong points sit behind his argument. I would be delighted to meet him to discuss that further, but he makes good points and gives me food for thought.
Sarah Dyke (Somerton and Frome) (LD)
The cost of delivering services in Somerset is rising, with care costs rising by 47% between 2022 and 2023, yet urban councils receive about 38% more Government funding spending power per head than rural councils. What steps is the Department taking to address that inequality and help rural councils to deliver vital public services?
Simon Hoare
As the hon. Lady will know, the rural services delivery grant tries to reflect that as well, but if only the Lib Dem leadership of her council had got on—as Dorset did—and delivered the benefits of going unitary, rather than fiddling while Rome burns, her situation might be a little better.
Oral Answers to Questions
Debate between Simon Hoare and Sarah Dyke(2 years, 1 month ago)
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Sarah Dyke
May I take this opportunity to wish Mr Speaker a speedy recovery?
I thank the Minister for his response, but I say respectfully that I do not find it satisfactory. I declare an interest as a proudly active Somerset councillor. Councils provide essential services, such as adults’ and children’s social care, yet increasing costs in social care, alongside inflation, mean that many councils around the country are struggling to provide adequate care. I must warn him that, without action, lives will be foreshortened. The cost of providing services is higher in rural areas than urban areas, yet rural residents will receive 13% less per head in social care support. Will he reassure me that the forthcoming fair funding review will address the unequal way rural councils are funded?
Simon Hoare
The hon. Lady, who is my constituency neighbour in some respects, makes an important point in a serious way. I concur very much on the seriousness of the issue and the challenge that it is presenting to our upper-tier authorities. As I said, we will of course look in the round at all the pressures being placed on local government to see what we can do to help. She rightly mentions the rural services delivery grant, which I have championed. It is very much in my mind to see what we can do during the settlement to address the issue that she raises of the cost disparity of delivering quality services in rural settings, particularly where populations are sparse.