My Lords, I am grateful to all those who have signed up to speak in this debate on growing the rural economy, not least because of the breadth of experience and knowledge that is represented in your Lordships’ House which we will be drawing on today. In doing so, I declare my interest as president of the Rural Coalition and as a vice-president of the Local Government Association.
Many people dream of moving into the countryside because of the quality of life that it can offer. I think of the strength of rural communities, the high levels of social capital and the way that people support one another—no wonder it is attractive. We in the Church of England are glad to play our part in that: we are at the heart of many of our rural communities across the country, wanting to contribute to their flourishing and thriving.
Very often in this House, we raise problems associated with living in the countryside, such as rural crime, fly-tipping and the lack of access to services. Today, however, I hope that we can frame our debate in terms of the untapped potential of the rural economy and on the prosperity that it can deliver for our nation—that is, if we can get the right policies and support in place. I note that His Majesty’s Government have committed to making economic growth a top priority, to deliver on
“what matters most to working people in every corner of the UK”.
To start with, it is good to remember that there are many, many working people in rural communities: nearly 20% of the population of this country live in the countryside and over half a million businesses are registered in rural areas, employing 3.8 million people. The rural economy contributes over £315 billion a year to England alone. It is vital, then, that the Government’s missions not only deliver for rural communities but enable the rural economy to play its part in helping to deliver them.
Unlocking the pride and potential of every nation and region across the British Isles will not be possible if our strategies and policies are primarily focused on urban areas, on towns and cities. We need to be strategic and intentional about unlocking the potential of our rural areas too. For many people, the phrase “the rural economy” conjures up pictures of agriculture and tourism. Farming, for example, has been dominating the news lately, and the impact of the Budget on farming communities has been the subject of a great deal of controversy and debate. We need to be clear, however, that the rural economy is diverse and innovative. Farming, as important as it is—I am the son of a farmer—is not interchangeable with rural industry. There are many other aspects to the rural economy.
The recently published report Reigniting Rural Futures, commissioned by the Rural Coalition, of which I am president, shows that the biggest employer in rural authorities is the sector comprising public administration, education and health. It accounts for 30% of workers compared, incidentally, with 33% in urban areas for that same sector. It is significant that agriculture, mining, electricity, gas, water and waste as a sector employs just 2%. The Pragmatix report shows that, in the rural economy, productivity stands at just 82% of its non-rural counterpart, with a continuing downward trend in the future if we carry on with business as usual. However, if we could enable our rural economy to perform at a similar level to that of Scandinavian countries, for example, we could be looking at an additional £19 billion in tax revenue for the public purse, not to mention the associated benefits that such prosperity could bring to the communities themselves.
My Lords, I congratulate the right reverend Prelate on calling this very important debate, and on bringing to it his great knowledge, his experience and his insight into the workings of the rural economy and rural people. Today’s debate is timely. The new inheritance tax rules for family farms announced in the Budget have dealt a hammer blow to every rural community in the country. I very much fear that, if the Government do not modify their proposals, as suggested, for example, by the Institute for Fiscal Studies, they really will have damaged any prospect of growth in the rural economy for generations. Because growth in the rural economy depends heavily not only on the prosperity of the farming sector but on its stability. Nicholsons, a farm machinery business in Norfolk, is already facing increased wage costs from national insurance changes and says that the uncertain future for family farms will
“reduce investment in people, infrastructure and technology, if not wipe it out altogether”.
The very essence of the prerequisites for growth will be lost.
These issues were impressively rehearsed in the recent debate on family farms called by my noble friend Lord Leicester. From memory, there was only one speaker in favour of the Government’s intentions. I am sorry to repeat myself from that debate, but I do feel that the Government have got this wrong: their plans may destroy and not grow the rural economy. Rural communities, as described by the right reverend Prelate, already face many challenges. I agree with him that one of the most vital is that of access, getting to work, getting to schools and colleges, getting to health service provision, and of course getting access to broadband internet and phone coverage.
I will give some examples of difficulties of access. Difficult or non-existent transport links can mean that almost all working households in rural areas, whether they can afford it or not, have to have a car, and sometimes two cars—certainly for part-time or shift work. Domiciliary care workers struggle to provide a reliable service to their clients. Travel at night can be difficult for many. Providing school travel, in particular for special needs pupils and for colleges, is an added cost for rural local authorities. A visit to the GP or out-patients’ clinic can take the best part of a day.
My Lords, it is a privilege to follow the noble Baroness, Lady Shephard of Northwold. I thank the right reverend Prelate the Bishop of St Albans, not only for calling this debate but for his tireless work on behalf of rural communities. At a time when the Bishops’ Benches are somewhat under assault, it is notable how much work he does. The recently retired Bishop of Exeter similarly did an awful lot of work for rural communities, and the Bishops’ voices are incredibly powerful.
I note my interests as a rural business owner in Devon and champion in this House of a very rural county which suffers from all the problems that have been identified. It suffers from being very beautiful and therefore a place that people imagine is very well-to-do; indeed, many well-to-do people own second homes there—this is Devon. It also has the largest road network in the country, and an ageing population, with all the implications of that. Due to its beauty, it has many crumbling coastal towns built in Victorian and Edwardian times, which cause all sorts of challenges and deprivations.
I also note that I am a supporter of the Great South West, which champions the interests of the rural south-west peninsula. It is focused on three themes: food security, energy security and defence security, which is a good indication of the broad range of services that the rural community provides to us nationally.
In the previous debate, I mentioned that I co-chair the Exeter Partnership. In that capacity, I see myself as a champion and a voice of the rural hinterland of Exeter, within the workings of the city. This brings me to the first point I want to make, which is that this debate and the way in which we look at rural England and the rural economy often seek to draw a line between our rural and our urban communities. I wonder whether that is really that sensible, because what I seek to do within the Exeter Partnership, and what we need to do, is to focus on how wholly dependent upon our rural hinterland is the entirety of our urban population. Perhaps by focusing solely upon rural issues we forget that the urban and the national economy are entirely dependent upon the rural economy for their well-being.
My Lords, I draw attention to my registered interest. I thank the right reverend Prelate the Bishop of St Albans for introducing this timely debate and I am delighted to follow the noble Earl, Lord Devon, and thank him for the leadership he has given in relation to so many agricultural issues.
I have lived for over 60 of the past 75 years in the same village in rural Gwynedd, since 1947, when my parents moved into a half a farmhouse. I had the huge benefit of living my formative years in close proximity to the next-door tenant farmer, who made a very modest living out of a 60-acre holding.
It may be timely to remember that it was the post-war Labour Government who largely rescued agriculture in Wales, which had suffered massively in the 1930s. Indeed, the Labour Minister of Agriculture, Tom Williams, was tagged “Feather Bed Williams” for giving the farmers too comfortable a time—an accusation which I do not think the present Labour Government are likely to suffer. Agriculture is still the backbone of our rural communities. Its well-being is essential if we believe in producing food from our own resources. I greatly enjoyed a period of 12 years as president of the South Caernarfon Creameries, a good example of agricultural self-help.
The confidence of the industry is vital to maintain the investment needed for our agriculture to work efficiently. The Autumn Budget’s proposed change to inheritance tax rules has undermined that confidence and I urge the Government to reconsider their proposals, so as to exempt modest family farms from a punitive tax regime which will drive small family farms out of business. This will trigger an inevitable outcome: such land will be bought up by rich corporations, pension funds and forestry interests. Ironically, such investment is often driven by tax avoidance strategies, but it inevitably heralds a withering of the food production capacity in rural Wales and elsewhere. Is this seriously what the Government want? There has surely rarely been such a blatant scenario of unintended consequences.
My Lords, in our short debate on the 15 October, I was struck by the positivity of most of the speakers for the rural economy and the potential that it offered. In today’s debate, the right reverend Prelate, to whom we are all grateful for introducing this debate so well and so fully, picked up on those ideas of positivity. I so agreed with the phrase that he used: it is time for a strategy for the rural economy. That was the title of the report of this House in 2019, and I was privileged to serve on the committee.
There are undoubted opportunities. The right reverend Prelate reminded us of the gap in productivity between rural and urban areas. It is worth looking at the proportion of gross value added. In England, it is only 16%, whereas in Scotland it is 26% and in Wales it is 28%. Would the Minister get in touch with the devolved Administrations and find out whether there is any potential from up there and over west that could be used in England to improve the productivity and increase the percentage of GVA?
What has changed between now and the debate we had only two months ago? There has been a very significant change: we have had a Budget. The Budget was so beautifully described by Sir James Dyson as
“an egregious act of self-harm”.
The enthusiasm and potential that I thought the rural community had for this Government has been squashed. Small businesses, which the Minister in a recent letter to me described as the beating heart of the high street, were taxed with extra costs, burdens and bureaucracy—the very things that rural businesses do not want if they are going to thrive in the modern world.
A small but very important percentage of people in rural areas are farmers. In our debate on the Budget and small farms the other day, I listed all the extra taxes that the current Chancellor had imposed on farmers. The cumulation of that is the complete lack of confidence in the Government on the part of farmers, and a reduction of the incentives farmers have to plan for the future. It must be a very difficult time for farmers.
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.
It is a privilege to follow the noble Lord, Lord Harlech, and I thank the right reverend Prelate the Bishop of St Albans for his passionate work for rural communities and for bringing the future of the rural economy to the attention of the House today. I declare my interests as set out in the register: I live in a rural village, work in a rural market town, and run a veterinary practice that relies on rural businesses and the community for its turnover.
So, what makes up the rural economy’s Christmas list to the Government to enable it to grow and prosper in the coming years? The first item on my list is very similar to that of the noble Lord, Lord Harlech: government thinking to ensure that the rural minority is not forgotten when major decisions are made by government departments.
The farming community is the cornerstone of the rural economy, and is reeling from the recent Budget, as debated recently and mentioned today. This is an example of how the rural community suffers from the lack of joined-up government and policymaking. There appears to have been very little consultation between Defra and the Treasury on this decision. Will the Minister continue discussions with the Treasury, on behalf of the farming community, on the impact of this change to APR and BPR?
The Government can also support farming by monitoring and reviewing the dominance of food manufacturers and supermarkets in the food market. The price that food is sold to the consumer needs to reflect the cost of production for all businesses in the supply chain, and to ensure that farmers are not the ones squeezed to create profit for those dominant companies.
Joined-up thinking between local towns and local district councils would also be of benefit, ensuring that we can maintain and develop town high streets, which are essential for the rural community. In the town of Malmesbury we have a proactive town council that is looking to develop the town, but one of the frustrations of the local traders is parking charges. These are set by Wiltshire Council and are seen as a revenue generator. The result is a frustrated town council, as it wants to encourage the local community to come into the town to support local businesses and maintain a thriving town centre.
I declare that I am a member of the Conservative Environment Network, the new Climate Tech APPG and Peers for the Planet.
First, I pay tribute to the right reverend Prelate the Bishop of St Albans, for whom I have great admiration. Alongside the right reverend Prelate the Bishop of Norwich, he adds immense value to discussion of the crucial issues of rural communities and the environment. Like their namesakes on a chessboard, when they are combined, they are formidable, and they bring important views to this Chamber.
I am a proud Lancastrian, born in the constituency of Pendle. The area has two former mill towns and three smaller towns surrounded by stunning fields, hills, reservoirs, forests and scattered villages, with Pendle Hill majestically looking on. Until recently, I was adamant that I am from a rural constituency. My friends and sister agreed with me. However, my good friend the temporary former MP informed me that Pendle is actually classed as urban. I was amazed. I swiftly discovered the rural/urban classification which defines areas. It is based on the census and purely on population.
I understand that funding has previously been available to those areas specifically classified as rural. While I am sure that that is well-intentioned, it can disqualify rural parts of urban-classified locations. For instance, in Pendle, a quarter of the population is still classified as rural. My plea to the Minister, if I may, is to be cautious about using that formula in future.
Obviously, farming is a key part of this debate. I will not repeat the many powerful arguments that have been made already concerning the Budget, but have any departments assessed the effects of these changes on nature, rural economies, food security, economic security and the appeal to young people to become farmers? Are there any steps that the Government will take domestically to promote locally produced food, and what more is being done on better trade deals? Farmers farm land; they know the land; they nurture it; us greenies need to bang the drum for them now more than ever.
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There has been a slight improvement in access to internet and phone coverage for rural businesses in the year to September 2023, but it is still not as good as that in urban areas. And, of course, there is our old friend, the power cut. This is a regular occurrence where I live if there are gales, snow, frost or storms—or sometimes, one wonders, just for fun. Having been brought up without either electricity or running water, I obviously have an armoury of candles, torches and storm lights. But this is a serious problem for rural households and businesses.
As in all communities, we face potential conflicts: choices, for example, between providing the affordable housing which would prevent the closure of schools and the hollowing out of our villages, or catering for the thriving second-home and tourist market, with jobs for builders, craftsmen, designers and architects, and in hospitality and retail. Then there is land use: for building, for solar power and wind farms, or for food production.
However, all communities face their own challenges, not just rural communities. We are nearing Christmas, it is the last day of term and I feel I should say that those of us who live in rural areas enjoy some of the most wonderful benefits: a beautiful environment; strong and self-reliant communities, supported by incredible volunteers in every sphere, from the car hospital service to lifeboats, to supporting those isolated by ill health, age or location; our rural schools, nearly a quarter of which in Norfolk are church schools, where teachers strive to nurture and to encourage ambition and aspiration; and our network of churches, a lifeline for many. I have a message of cheer for the Minister. We do not know whether the Treasury consulted Defra, of course, but, if she somehow has the feeling that the Treasury picks on Defra, I can tell her that all her predecessors—several in this House, including myself, whether at MAFF or Defra—felt the same. It goes with the territory—but happy Christmas.
A very wise Minister said recently that
“our biodiversity is in crisis. Without nature we have no economy, no food, no health and no society”.—[Official Report, 11/9/24; col. GC 121.]
The Minister may recognise her words. Our nation is entirely dependent upon the rural economy, so for us to sit here and focus solely upon the rural economy and forget about the rest of our economy is perhaps a false distinction.
I had the privilege recently of meeting Professor Partha Dasgupta, who famously wrote about the economics of biodiversity and reminded us all that there is a vast amount of economic work inherent in the natural capital that resides within our rural communities that we simply do not value and do not identify. Therefore, when we are talking about the contributions of the rural economy to our nation, we need to insist that the Government begin to look much more closely at that natural capital—what is the value of the fresh air and fresh water? Sewage and water companies are being much considered today, with Ofwat’s announcement, but that is all being provided by our rural natural capital—the water that comes into our urban centres and the sewage that departs from them. We really do not think about that nearly enough.
The right reverend Prelate mentioned rural deprivation. On Devon County Council’s behalf, I note that the ending of the rural service delivery grant removes some £10 million from its budget, which is a vast proportion of its budget. Of course, the Government are seeking, perhaps worthily, to redirect those funds to deprived areas but, as has been identified, it is very difficult to identify deprived areas within a potentially wealthy-looking rural county such as Devon. The idea of deprivation requiring a whole area to be deprived is a fallacy; there is deprivation in the most bucolic parts of the country—it is deprivation that is simply not caught or identified by the way that deprivation is currently measured. The county council notes services such as getting children to school, fixing the vast network of roads and simply getting people to doctor’s appointments, et cetera, are incredibly challenging.
I turn to housing and planning in the few minutes that I have left. I take note of the Devon Housing Commission, which reported back in July when we had the change in Government. The provision of affordable housing within our rural areas is in crisis. I know the Government have a plan for 1.5 million new homes, but the challenges of building new homes within variously protected landscapes, the complexity of the planning challenges, the lack of staff within planning departments in rural district councils and particularly the lack of SME builders in rural areas are real limitations, and I hope the Government will look at these.
Life is rural Wales is immensely challenging at this time, without being further undermined by government action. Ordinary working families are being driven from rural Wales by a combination of factors. The most fundamental has been the failure of economic policy to deliver a reasonable range of well-paid jobs, leading to a situation where the average income per head in parts of rural Gwynedd is 40% below that of south-east England. This leads to the best of our young people moving away to seek better-paid work, and of those who wish to remain, living in their own communities where they have their roots, they find that they cannot compete in the housing market against those from distant cities with fat chequebooks, buying up local housing stock as second homes.
This is not just a problem for rural Wales; it is equally felt in rural counties such as Cornwall. The effect is to further erode rural life, often leaving villages as ghost communities through the winter. This is exacerbated by the run-down of local services, such as bus services, which makes it increasingly difficult for those on low incomes to travel from rural villages to nearby towns to seek work. Young families are forced out by such factors, leading to declining school numbers and accelerating school closures. We also see rural communities being hit by the loss of facilities, such as banks and post offices, which hits local businesses and older people who are more reluctant to turn to internet banking.
The availability of fast broadband connectivity is very patchy in many rural areas. Surely the UK Government should make it a high priority to ensure that rural areas are not deprived of such an essential part of any modern commercial and social infrastructure.
Some people still believe that tourism offers the solution to the economic problems of rural areas. Of course it can make a contribution, but it is highly seasonal in rural Wales, and any economy which operates at 200% capacity for a few weeks in summer and at 20% capacity for most of the year is, by definition, economically inefficient.
Rural Wales desperately needs capital investment projects, such as the hydroelectric schemes and pump storage facilities which are being considered. The SMR projects at Wylfa and Trawsfynydd should be driven forward without delay, the latter linked to the medical radioisotope manufacturing unit proposed by the Welsh Government.
The loss of young people from rural areas, such as rural Gwynedd, and their replacement by people who move in after retiring has led to a disturbing report this week from Gwynedd council. It projects that, over the next 20 years, there will be an increase of 56% in demand for home help services from the Gwynedd social care department. This emanates from an absence of family living locally to help care for their elderly relatives, and because of an inward migration of retired people who do not have roots in the community into which they move, and in which they have to face the challenges that come with old age.
Unless there is an awakening to the crisis currently hitting rural communities, we shall find the fabric of rural life eroded beyond recovery. I urge the Government to address this issue without delay.
Combine that with the fact that climate change is making a third of our clay-based soils in lowland England unfarmable and it is going to have a very large effect on the productivity of farms and the ability to feed ourselves. Food security is one of the things that the Government thought was important before the election. How are the Government going to square the circle of making our food supply more secure, at the same time as berating those who are actually producing it?
In the debate two months ago, I mentioned Project Gigabit, and the right reverend Prelate picked that up earlier. I would add a different aspect to that: the download speed for internet. In rural areas, 5% of the community cannot get a download speed of 10 Mbps, whereas this is only 1% in urban areas. With so much having to be done on the computer now, unless you have a good download speed you are in serious trouble. Could the Minister address Project Gigabit and give us a bit more detail of how she plans to increase the availability of good broadband and social media supply in rural areas?
Another question I asked in our debate two months ago was about the size of Defra staff. Yesterday, I was emailed a written reply. As it is not in the Library, I will quote the first sentence. Our report in 2019 said that there were 60 staff. The reply says:
“It is complex to place a specific figure on the exact number of colleagues in DEFRA who work on Rural policy, given the wide-ranging nature of rural policy and that rural-proofing of Government policy is a cross-DEFRA and cross-Government effort”.
Sir Humphrey would be proud of that.
As the Minister takes her train home for Christmas—I hope she has a lovely, relaxing time—and looks out of the window at all the farms, will she consider that 50% of those farmers earn under £25,000 a year, yet her train driver probably earns three times as much? As she will be on an Avanti train, will she also think, as she looks at the stock farms and the farmers who are working 365 days a year, that these Avanti workers are about to go on strike over rest days?
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.
Number two on the Christmas list is planning reform, as mentioned by the noble Earl, Lord Devon, and other Peers. We welcome the review of the National Planning Policy Framework, and the delivery of new homes to address the affordable housing crisis in rural areas and the creation and development of rural businesses. The planning process is costly, bureaucratic and painfully slow, especially in rural areas. An example is Cirencester, in the Cotswolds, which has planning for a housing development of 2,350 houses. It initially went into planning in 2017 and building started in the summer of 2021, but as of today, only 65 have been built, 14 of which are affordable. For an area in need of homes and low-cost housing, building 65 houses in seven years is just too slow to meet demand. That begs the question: is the developer controlling the supply to maintain higher house prices? Would the Treasury consider charging large housebuilders a tax on developments that have not sold any property within five years of granting an outline or detailed plan, to encourage home building? Also, I hope that planning reform will optimise the development of brownfield sites in rural areas, especially redundant farm buildings.
Number three on the list is transport. Ours is a medium-sized business in a rural town, and 95% of our 125 employees drive to work; no one uses public transport. Bus services are difficult to run due to the large number of locations that need to be visited, and passenger numbers are relatively low. So again, we welcome the Government’s review of bus services, but the rural economy needs better public transport to prosper. Future bus services must be more flexible to make them efficient for users, and economically viable for bus companies and local councils. There has to be innovation, such as technology that could request pick-ups and drop-offs in villages when required. I appreciate that these ideas present challenges, but my hope is that the Government can address them through innovation—trying new and risky ventures in public transport to resolve this long-standing problem.
Number 4 on the list is communication, which many Peers have mentioned. I have spoken in the past about communication in rural areas and the deterioration of mobile phone coverage with the turning off of 3G. I have read Ofcom’s response to the Minister of State, and it is reassuring that it will continue to monitor 4G and 5G coverage. The 4G network is essential in rural areas, as signal strength is much greater than with 5G. Project Gigabit continues to be rolled out, as the noble Earl, Lord Caithness, mentioned. As a beneficiary of broadband home fibre in a rural area, I know that it brings massive improvements that enable home working and less frustrating domestic internet use.
This sort of connectivity is essential to growing productivity through the use of current available technologies; it will allow a vast array of small businesses to grow and develop in rural areas. But not all rural properties can be connected economically, especially in Wales, by fibre to the home. Will the Government consider supporting extreme locations with subsidies for satellite broadband to enable businesses to develop in these remote areas?
The list of support could be endless, but the opportunities are great. With joined-up thinking between rural communities and the Government, and with innovation, we could reverse the tendency of rural businesses to decline.
I turn to the future and, first, the need for diverse job opportunities in rural areas, which I think has already been raised. Research has found that over a third of rural residents are likely to consider moving to a town or city within 12 months, with 30% citing a lack of jobs. How can we undo that? There is more to the countryside than farming, and rewilding can play its part. There are direct economic benefits of nature, such as through tourism, but also indirect ones, such as tackling flooding and pollution, as we discussed with the Water Bill.
Increasingly, companies and projects such as Nattergal are facilitating these efforts, not only through nature restoration and improving biodiversity, but by maintaining traditional jobs such as drystone walling, hedge growing and coppicing. Yet there is more. A fantastic study by Rewilding Britain found that rewilding projects created over 50% more jobs, with new roles in ecology and forestry and increased revenue from sources such as tourism, weddings and education; and they continue to produce food and support livestock. Yes, farming does not need to stop in the interests of nature. One in three mouthfuls of the food we eat is dependent on pollination. Nature’s benefits are numerous, including economic, and it is essential for life.
Secondly, we need to promote rural life and local agricultural shows. While there are many large events such as the Royal Lancashire Agricultural Show—which I am sure my noble friend Lady McIntosh will agree is arguably the best—there are other smaller, local ones. In Pendle, some have not survived, but others have, such as the Trawden show, which started its life in 1925. My dad used to judge and show, and I remember being dragged along as a kid. Those packed tents would eventually be emptied, the entrances sealed shut. Then, like some strange ritual, my dad and others would meticulously study, cut into, sniff or even taste an assortment of produce that had been neatly laid out on tables, be it flowers, onions, or carrots. After a few mutters, they agreed the best, certificates and rosettes would be left behind, and I would be whisked off to sit in a tractor or see cows being paraded or dogs performing tricks. Not only are shows great family fun, but there you saw pride, love and a sense of community. People had spent all year preparing for that moment, lovingly nurturing whatever was on show. What more can be done to promote these events and rural life? They help tourism, unite communities, support local industry and educate.
This is my final point: my dad showed me much, so my education was not just at school. Across our land, we have amazing farms, and I visited loads when I was younger. I grew to love my surroundings—the countryside, fields, valleys and hills—and I came to respect them but only when they were gone, when I had moved to London; hence I bring up my daughters to do everything to love wildlife, nature and the countryside. This year’s Children’s People and Nature Survey for England showed that, in one week, 62% of children and young people visited a park or playing field and 27% visited woods, yet 15% visited fields and farmland in the countryside and 4% recorded no visits at all. What more can be done to encourage farm visits and outdoor learning, helping farms but also helping children understand where food comes from and the importance of nutritional quality?
In conclusion, as the Rural Coalition says, there are enormous challenges but also opportunities. To me, this is not nostalgia. It is a way of life, now. It is real. It is the food we eat, the walks we take and the breaks we make. Like all things, it needs nurturing and a chance to help it grow, not just for rural communities but for us all.
If we want the rural economy to grow, we need additional capacity. The Government need to recognise that there will be some additional costs associated with delivering services and projects in rural areas where sparsity of population poses so many additional challenges. There is often a lack of access to education and job opportunities, compounded by the lack of reliable and affordable public transport. When you talk to rural employers, one thing that they say is that people very often want the jobs but simply cannot get to them because of the transport difficulties. There is a desperate lack of affordable housing, exacerbated by the huge number of second homes, particularly in the south-west, driving up prices and driving out young people from their rural communities.
But there are some hugely positive aspects of our rural communities too. Over the years, I have been privileged to visit many rural businesses and farms in the diocese in which I serve, covering Hertfordshire and Bedfordshire. I think of my visit to an eco tomato-growing plant in East Hertfordshire, using an anaerobic digester that produces biofuel. The exhaust gases emitted by the engines are cleaned and then used in the greenhouses to support and enhance plant growth. I think also of the very innovative Groundswell festivals in Hertfordshire on regenerative farming systems—I know that some members of your Lordships’ House have been. We are absolutely at the forefront of horticultural and agricultural development across the world; we should celebrate and be proud of that.
Our rural areas also have a big part to play in the transition to net zero. There are already some outstanding examples of investment in renewable energy taking place in the countryside. In addition, some of the best examples of community ownership and co-operatives are to be found in rural communities, safeguarding a range of commercial services and with long-term survival rates. An excellent example of this is the Bathford village shop and café in Somerset, which won an award at the Plunkett’s Rural Community Business Awards. I will not describe it, but noble Lords might want to look at it, as it is an extraordinary initiative.
I welcome the Government’s commitment to doubling the size of the co-operative sector. Some village halls and even some parish churches have been opened up in rural areas, providing spaces for free wifi and offering hubs where people working from home—it sounds a great idea when you start, but after a few months it can be very isolating—can gather together perhaps once a week for half a day to network and build support and friendship. These are just some of the wonderful, innovative projects that are already going on in our rural communities. If we are to see more of these, however, there needs to be a little more early-stage capacity support for initiatives so that they can be self-supporting, robust and, in the long run, transformative. If the barriers are removed, all the signs point to rural communities being up for it—they will realise their potential.
Then there is tourism, which is a significant part of the rural economy, not least in areas such as Devon and Cornwall and in Cumbria in the north-west, which are able to compete with some of the most attractive areas across the whole of Europe. However, to attract tourists, we cannot just leave it to local tourist boards. We need a national strategy that can attract people to come.
With so many opportunities, what are the barriers that rural areas face? Let me just briefly mention three, if I may, although there are many more. The first is poor broadband. As the Pragmatix report shows, only 69% of rural premises have a 4G signal indoors, compared with 90% in urban areas. It hinders home working, home banking, the growth of online businesses, and indeed even tourism. This will probably need different solutions from the ones that work in urban areas. I have recently been involved in discussions, for example, where we are looking at installing 4G equipment in some of our remote village spires and towers in order to bounce signals up into areas that, at the moment, cannot get decent coverage.
A second barrier is access to banking services. The pandemic accelerated the movement away from cash and, with the industry keen to reduce operating costs, the way many start-up businesses and small charities use banking services no longer fits with the business drivers of today’s banking industry. The transition to online banking is happening too fast for many small charities and businesses in rural areas, with little thought or support to aid the transition. Many are now operating in areas where local bank branches have disappeared. We need the convening power of central government to bring together the Department for Business and Trade, possibly the FCA, UK banks, the Charity Commission and community sector organisations to find solutions. Power and co-ordination are the answer in this case, rather than large amounts of extra funding, to ensure equal access to financial services.
Thirdly—I am conscious that time is going on, so I will be very brief—rural public transport is obviously a huge issue for us if we want young people to be able to stay in rural areas and if we want to enable workers to come and work in them.
I will make a few comments on local government funding and access to services. Organisations representing rural communities have been calling for a long time for fair funding for rural local authorities that takes into account the additional costs of delivering key services in sparsely populated areas. I welcome the Government’s announcement that they will be reviewing local government funding next autumn, although it is concerning that the rural services delivery grant has been withdrawn. I note the Government’s commitment to repurposing the money from this grant, which will be going back out in the form of the recovery grant, although the details are unclear. I hope that the settlement will take into account the costs of service delivery in light of the withdrawal of the grant, as well as the factors of rural deprivation, which are often lost in the scale of geographical data that the Government use to calculate deprivation.
Sadly, when one turns to the national and regional level, one finds that the rural dimension of policy and funding is sometimes lost. If funding is targeted towards the largest areas of deprivation, it may well ignore the smaller pockets of rural deprivation that are often hidden in the statistics, or are in fact so small that they are not picked up at all. I remember that the previous rural advocate used to say that if you add up all the tiny pockets of rural deprivation in this country, you get a community the size of Birmingham. It is a significant issue but one that is often not identified.
Deprivation is not the only thing that places demands on services. There is a large ageing population in rural areas, which places demand on social care. Is the Minister able to commit His Majesty’s Government to producing something that we have long asked for: a comprehensive rural strategy? Will the Government undertake to rural-proof all legislation in the meantime? Will they commit to consulting rural organisations and stakeholders when renewing the indices of deprivation next autumn, so that a better interpretation of rural deprivation can be produced?
I am aware that the Minister sits on the Child Poverty Taskforce as the Defra representative. Can she give us an assurance that the forthcoming child poverty strategy will focus on the particular challenges experienced by young people growing up in poverty in rural areas, to ensure that they can thrive?
I am hugely grateful for this opportunity to set out some of the many opportunities that we need to grasp and to highlight some of the barriers that we need to overcome, which I believe are not impossible at all to overcome, as we seek to grow the rural economy. I look forward very much to hearing Members of your Lordships’ House bringing their considerable expertise and knowledge to bear, so that we can strengthen this important part of our national life.