Rural areas deserve a new deal

The countryside is not just a retreat for the rich and elderly, but a vital and neglected part of the economy

By Graham Biggs

Everyone in the UK, wherever they may live and work, needs a strong, confident and sustainable countryside. It is of huge value to us all: environmentally, socially and economically, as well as being instrumental in tackling climate change.

Yet it is all too easy for national governments to treat the nation as a single, homogenous unit. It may be simpler that way but it is seldom sensible. For 50 years or more, policy has undervalued the countryside and failed to meet the needs of rural communities – and therefore of the nation.

That is why this month the Rural Services Network (RSN), England’s largest grouping of local authorities, other public service providers and rural interest groups, published its own manifesto, ahead of the General Election. It builds on the ‘Call for Action’, published by the Network in 2008, which was discussed with senior representatives of the Labour, Conservative and Liberal Democrat parties. The aim then was to influence early thinking about party manifestos and ensure that rural concerns were promoted. The Rural Services Manifesto takes that work a step further and reflects the changed economic circumstances that now prevail, with significant public expenditure cuts inevitable whichever party is in government.

The funding systems across the whole range of essential public services fail to recognise the additional costs associated with delivering services in sparsely populated areas. Furthermore, the situation is only getting worse for those living in rural areas as the demographic becomes older and the recession diminishes the tax revenues of local councils.

We have campaigned tirelessly for fairer funding. Our own research has indicated that some services cost as much as 90 per cent more to deliver in rural areas than in more built-up districts. There is now a real fear among those living in rural areas that the fiscal situation in which Britain finds itself will exacerbate an already untenable status quo. For instance, a 10 per cent budget cut for all local councils across the board would be hard for those servicing more urban areas, but in sparsely populated areas this effect would be amplified ten-fold and services already strained by unbalanced funding formulae could be damaged irreparably. Discretionary (but nevertheless essential) services might have to be withdrawn altogether.

In all, the Rural Services Manifesto calls for 41 specific actions, from the delivery of growth, to the provision of safe, reliable and affordable transport, safeguarding rural schools and ensuring the existence of affordable housing, health and social care. It examines the digital future in rural communities, as well as ways to overcome fuel poverty and improve flood and coastal defences.

Many of the respondents to our earlier consultation commented on the need to deliver growth to rural economies. We believe that there is a distinctive set of issues that have an impact on the rural economy, and which require special attention. At present, people who work in rural areas earn significantly less that those in urban centres - on average, over £7,000 per year less. The Government must commit itself to finding ways to close this gap.

The financial crisis has demonstrated that an economy cannot rely too heavily on one sector alone. The job of the next Government will be to rebalance the economy away from financial services. As it does so, the RSN will stress the importance of rural proofing at every stage of the process, so that new schemes to invigorate the economy can meet their maximum potential in rural areas and secure proportionate impact there.

For the health of rural economies, it is also vital that policy makers, at every level, appreciate the importance of small rural business, not just to the local economy, but to the local community as well. A network of small shops, village pubs and post offices is crucial for rural areas if communities are to be supported. In the same vein, town centres and market towns are the hub of rural life and vibrant town centres contribute toward the health and cohesion of rural communities. In England, rural shops are closing at the rate of 400–500 per year, hit by a combination of rising costs, lack of credit and falling margins. Village pubs are being closed at a frightening rate and post offices remain under extreme threat.

To reflect the special burden which rural businesses face, the Government should make small business rate relief more accessible and consider increasing relief to 100 per cent of the rate burden for a limited time. Local authorities should be able to support small rural business through the implementation of a comprehensive local procurement strategy which requires the authority to use local providers wherever possible.

Much has been written about the threat to rural schools, but vocational skills training and support for the development of young people are also critical to the maintenance of robust communities and must be accessible locally. The cost of travel to and from further education acts as a strong deterrent to young people to develop their skills. This situation is being aggravated by the rationalisation and concentration of further education provision into urban centres, just as the number of Job Centre Plus offices is also being reduced.

On the issue of agriculture, the manifesto points out that food security is an important strategic objective for the UK, as well as an important employment sector in rural areas.  Already rural areas are suffering from a critical shortage of skilled farm workers and growers which, if unaddressed, will hamper Britain’s ability to produce enough food for the nation.

With 41 per cent of the total agricultural workforce over 50 years of age, the RSN says that urgent action is needed to attract more people into the agricultural sector.  Lantra, the Sector Skills Council working for environmental and land-based industries, has estimated that 60,000 new entrants to the sector will be needed over the next decade to replenish the retiring workforce.

Rural areas are not just a retreat for the rich and the elderly. Nor are they – despite the importance of both –inhabited only by farmers and tourists. Britain’s countryside is a living and working part of the British economy, society, and culture.

The warmth and picturesque beauty of our rural communities are often the ideal place to start a young family or a new business. With a rich history and strong cultural traditions, the Rural Services Manifesto seeks to secure, protect and enhance those communities while ensuring that the importance of the countryside to our shared economic and social prosperity continues to grow.

To find out more about this article, visit: http://www.sparse.gov.uk

19 January 2010

Graham Biggs. Chief Executive of the Rural Services Network,