Businesses in Rural Areas

[Matt Western in the Chair]

I am pleased to see so many Members here. It is a warm afternoon, so if you wish to remove your jackets, you may do so. I do not necessarily expect a hot debate on this subject; however, a great many of you are expecting to speak, so we will start with a time limit of two minutes—and I am already anticipating that it could be reduced—and you may wish to prepare your speeches accordingly. I remind you all to speak through the Chair.

I beg to move,

That this House has considered Government support for businesses in rural areas.

It is a pleasure to serve under your chairship, Mr Western, and I am delighted to secure this important debate. We need growth. It is a key part of the Government’s agenda and it is a fact agreed across the House: our economy has to get going again. I want to make the simple but firm case that the Government can secure that much-needed growth if they give our rural economy the support it needs.

For hundreds of years, our country was driven primarily by the rural economy. North Norfolk was a vital trading hub, with the Glaven valley becoming highly prosperous as a key component of the wool trade, importing shipments from Europe and benefiting from our ease of access to the Netherlands by sea. While the Glaven ports are no longer economic powerhouses, the rural economy continues to play a major role. Nowadays, about a quarter of businesses are based in rural areas, and they contribute a whopping £240 billion to the economy per year. However, we are acutely affected by the specific challenges that rural economies face.

When people in North Norfolk think about economic growth and success, they do not need to dive head first into the spreadsheets of the Financial Times to decide about business confidence; they take a look at what is happening in their communities. Their economic indicators are not hedge fund billions, but on the high street. They take things such as the expansion of Coffeesmiths in North Walsham as a sign that more people are visiting our rural market towns, and they see from the opening of new businesses in Stalham that the Norfolk broads and their communities retain their unique appeal.

However, people in North Norfolk also see the closure of our local bank branches and think about how small businesses and sole traders will struggle with their business banking. They see our inadequate public transport system and wonder how our businesses can recruit or young people can train outside the immediate area.

The hon. Member is doing a great job in advocating for rural businesses. I was speaking the other day to the Suffolk chamber of commerce, which highlighted just how critical rural bus services are for people being able to get to work, training and other activities, and therefore how critical they are for our rural economy. Does he agree that we need better funding for rural bus services not only to support the economy, but to tackle social isolation?

I agree entirely—if only there was a buses Bill before the House. We are also going to get the Transport Committee’s report on buses connecting rural communities, and I would be interested in his thoughts on that in due course.

Meanwhile, rural residents see the Chancellor and the Business Secretary courting the banks and hedge funds, or flying overseas to seek investment. They know that that is important, but they would like to see similar care and engagement for the businesses that matter to them. The Chancellor is keen to get the ear of BlackRock’s Larry Fink, but what about the insights of Larry’s Pizzeria in Hoveton? Meg and Jamie, the hard-working owners, recently showed me how perilous the situation is for rural businesses like theirs. They have excellent reviews, a busy restaurant and a prime broads location, but the cash still just does not add up. The ever-growing cost of supplies, the broken business rates system and high energy costs mean that it has rarely been tougher for a rural business like theirs.

Business owners, employees, trainees and jobseekers have all shared their insights about how these rural economic challenges are impacting them. Chief among them is attracting, training and retaining the workforce. Although we in North Norfolk are proud to have the oldest population in the country, we are blessed with many eager and talented young people who are keen to cut their teeth in a range of sectors. However, the sad reality is that young people in rural areas are missing out on opportunities and seeing their career paths limited by the difficulty of accessing training, apprenticeships and early career development, which are simply too far away and take too long to reach to be feasible.

A large part of that is down to our public transport struggles. During the debate on the Bus Services (No. 2) Bill, I spoke about a young woman from my constituency who is eager to get an apprenticeship working in childcare, but buses will not get her to the right part of Norwich in time for the 8 am start.

High streets in market towns such as Melksham, Devizes and Bradford-on-Avon in my constituency suffer from a lack of footfall, which is exacerbated by poor public transport connections. Does my hon. Friend agree that improving bus and train services, as well as providing safe cycle lanes, is crucial for business development?

I wholeheartedly agree. It is not just the reduction in social isolation and the improved access to healthcare, but the access to training and development, and the ability of customers to get to places to spend their money in the local economy, that make the case for improvement in public transport such a compelling one.

As I was saying, a large part of this situation is down to our transport struggles. The would-be apprentice in childcare I mentioned cannot get to the right place in Norwich at the right time. Training providers themselves struggle to recruit and retain the necessary staff and professionals to deliver consistent and wide-ranging vocational training offers.

I want to highlight the work of one of my constituents in trying to tackle these training and employment challenges head-on. Mitzi from Mundesley has set up a business that employs young local people to turn empty second homes into affordable rental properties. She currently has three such young people—Jake, Jeremy and Sandor—and they are getting practical skills and training in the construction industry while helping to deliver much-needed affordable homes for people just like them.

Community-centred entrepreneurs like Mitzi are not a rarity in rural areas. People start the businesses that their communities want and need, and they provide just as much, if not more, than they receive. However, rural entrepreneurs such as Mitzi, and business owners and managers across rural areas, also struggle with a lack of networks and experience, which are more easily clustered in urban settings. In the square mile of the City of London, there are 22,000 businesses; in the 360 square miles of North Norfolk, there are 5,000. There is a lack of easy networking, shared expertise and experience, and paths to mentorship and training, which are far more viable in an urban business setting, and yet we have no less ability to develop cutting-edge innovation, global leadership and breakaway sector success.

I was very lucky last year, on the day after the general election was called, to celebrate my birthday at Albourne Estate, which is a vineyard that produces exceptional English wine. As those of us in areas such as Sussex look towards devolution, does my hon. Friend agree that it is vital that businesses like Albourne are given support through the incoming mayors, and that those mayors have the powers in areas such as transport, training and skills to deal with the issues that he is outlining?

I am grateful to my hon. Friend for her intervention, and I am grateful to that business in her constituency for providing such a great product, which I have sampled. It is mostly breweries in North Norfolk, so I think I will be safe.

I totally agree with my hon. Friend: devolution is a great opportunity. Whatever people feel about devolution, the opportunity that it provides, both in transport and for economic growth leadership, is clear and we must embrace it. Devolution is happening, including in Norfolk and Suffolk, and she has outlined one of the things in favour of it.

Clean Tech East, which is in a business park that straddles my constituency and that of the hon. Member for North West Norfolk (James Wild), is one example of sector-led success, but it is also a great example of the support that is needed from Government, which is slightly different. In particular, we need Government to empower local leaders to take action.

It is good news that the rural prosperity fund has been extended for another year, but it has been reduced to £33 million this year. Does my hon. Friend agree that we need a firm, long-term commitment to solving the challenges of rural infrastructure provision?

I am relieved that my hon. Friend asked that question, because much as funding is welcome in all forms—I know that many of my constituency businesses and their supporters have applied for funds, received them and been part of schemes—we need long-term settlements, long-term funding and local accountability. We cannot just be queuing up to make our pitches to Whitehall; we must have things decided and delivered on the ground.

The support that is needed in rural areas is different. Rural economic development can be, and must be, more exciting, inventive and far-reaching than just building and leasing business parks. Even where they are useful, local authorities and local leaders have to get to the root causes of rural economic struggles and support businesses to address them.

In Winchester we have the fantastic Sparsholt agricultural college, which engages with local businesses and stakeholders to ensure that it trains students in the skills that the local economy will need. A good example is its vineyard management course, which takes advantage of the amazing new vineyards popping up on our amazing chalk soil. Does my hon. Friend agree that we need Government support to ensure that there are accessible courses to give students of all backgrounds the skills to drive our rural economy?

I totally agree. We are developing a bit of a wine theme here, but let me return to a subject that Members might have heard Liberal Democrats talk about a lot, which is care. We are proud to have the oldest demographic in the country in North Norfolk. We should not be afraid of the fact that we have a care industry, which we should celebrate and encourage, and in which we should create career paths and provide training opportunities. Workforce development is key to tackling rural economic development.

I am delighted that some innovative, locally led programmes have been delivered by Lib Dem-led North Norfolk district council. Business owners have told me of the positive experiences they have had with the support and training that is available, and many more will benefit from the recently launched Invest North Norfolk hub. Local leaders, however, need to break the mould and provide innovative, far-reaching support and strategy to supercharge every rural economy. The rural economy is far from immune to the general business challenges that many face across the country; in fact, many of those struggles are only made greater by the nature of rural areas. Rural businesses struggle more with access to funding for investment and seed capital, and they struggle more to meet the cost of decarbonisation.

At the same time, in North Norfolk we have seen large community benefit funds from energy giants that host renewable infrastructure in our area, but the restrictions on those funds are incredibly onerous and they eventually run short of projects to fund. There are only so many bus stops in North Norfolk that they can attempt to gold plate. If access to the funds were liberalised, allowing businesses to secure the important support that they need to grow, adapt and improve, they could have a greater and wider-reaching economic impact, and they could support wider aims to secure environmental benefits and benefits for the communities that their infrastructure affects.

I wonder whether I can make the case for real support from the Government for community benefit from renewable energy. It is being proposed at a fairly modest level by the Department for Energy Security and Net Zero, but it is one of the biggest opportunities for rural Britain to transform its economy.

We have started the list, so let me reinforce and add my support to that ask. I hope it is something the Minister might be able to discuss with colleagues in DESNZ, to see whether some joined-up thinking might happen.

I have spoken much about challenges and struggles, but I also want to talk about the huge opportunities that our rural businesses could seize on with the right support from the Government. The unique character of our rural areas sets them up perfectly to benefit from some of the most exciting advances in science and research. Norwich research park, which is not in my constituency but is not far away, hosts many of the country’s world-leading research institutes in the field of agriscience, and they are making incredible scientific progress that could make our food and farming healthier, more efficient and more sustainable. Having such research excellence almost on our doorstep is incredibly exciting, and its location within touching distance of many of our farming and agricultural businesses provides opportunities for easy roll-out of a new generation of science. Our farmers could benefit from world-leading research, and our researchers are already benefiting from our world-leading farmers.