On October 15, 2024, Baroness McIntosh of Pickering, Chair of the Rural Economy Research Group, led a debate in the House of Lords on the topic of ‘Government Priorities for Rural Communities.’
Baroness McIntosh and peers from across the House of Lords outlined the challenges rural economies face, urging the government to clarify its priorities for rural communities. Key issues included rural housing, energy, agriculture, and public services. Doing her best to respond to these concerns, was Baroness Hayman of Ullock, Parliamentary Under-Secretary for Environment, Food, and Rural Affairs.
This debate was particularly relevant to the Rural Economy Research Group, who are determined to ensure rural voices are heard, not just during one debate, but continuously and loudly in every corner of Westminster. Rural prosperity is not just a rural issue, it’s a national priority.
Baroness McIntosh initially expressed concern over the absence of rural priorities in the current Government’s manifesto during the recent election, despite rural areas covering 90% of the UK’s landmass. She noted, “rural communities face many challenges, yet in policy terms they are frequently overlooked.” Rural communities still face inequalities in accessing services like healthcare, broadband, and transport. As Lord Cameron of Dillingham said, there is a “gross imbalance in the funding provided by central government for nearly all rural services” with rural local authorities receiving 45% less funding per head compared to urban areas.
Baroness Hayman responded by drawing attention to Government efforts such as Project Gigabit, which aims to expand broadband to hard-to-reach areas. However, 64% of rural premises still lack gigabit connectivity, compared to 90% in urban areas, limiting opportunities for rural businesses and farms. Baroness Hayman acknowledged these gaps but emphasised that the Government is working to close the rural-urban divide.
Additionally, the lack of reliable public transport in rural communities was raised by Baroness McIntosh. Residents, particularly the elderly, struggle to access healthcare, whilst the young have less opportunities for jobs and education. Baroness Hayman mentioned the £2 billion Rural Mobility Fund, aimed at improving public transport, but progress has been slow.
Housing emerged as another pressing concern. Baroness McIntosh emphasised the “desperate need for smaller, affordable one-bedroom or two-bedroom homes.” Current planning policies tend to favour the construction of large, expensive properties that serve a fraction of the population, or larger developments that can cause increased flooding and further stress on our already over-capacitated sewerage systems. Meanwhile, second-home buyers are driving up property prices, making it harder for local workers to afford homes near their workplaces.
Whilst Baroness Hayman reiterated the Government’s plans to build 300,000 homes a year and reform planning laws to address these issues, concrete details on how/if this will benefit rural communities remain unclear.
Agriculture, the backbone of rural economies, was also a focal point. Baroness McIntosh raised concerns about food security and called for increased domestic food production to reduce reliance on imports. She criticised the uncertainty surrounding agricultural budgets, urging the Government to provide clearer support to farmers and set out “an increased multiannual agriculture budget for the duration of this Parliament.”. Lord Roborough, Shadow Minister for Environment, Food, and Rural Affairs, echoed sentiments, advocating for greater investment in sustainable farming and citing the success of initiatives like the Woodland Carbon Code and the Peatland Code in attracting private finance for environmental projects. However, these schemes also raise concerns about the availability of land for arable farming.
In reply, Baroness Hayman reaffirmed the Government’s commitment to food security and sustainable farming, pointing to the retention of Environmental Land Management schemes (ELMS), which provide financial incentives for farmers to adopt sustainable practices. Yet, Peers highlighted that more funding and clearer implementation are necessary to support farmers fully.
Energy poverty in rural areas was another key topic. Many rural homes are off-grid and rely on expensive fuel sources like oil. Baroness McIntosh proposed measures such as burying power lines underground and ensuring rural communities benefit from renewable energy projects like wind farms and solar parks.
Baroness Hayman responded by mentioning several Government schemes aimed at alleviating rural fuel poverty, including the £450 million Boiler Upgrade Scheme and Home Upgrade Grants, which help rural households transition to more sustainable energy sources. However, these initiatives are still in their early stages and need to reach more homes.
Despite the challenges discussed, the debate also highlighted the potential for rural economic growth, with productivity in rural areas at 86% of the national average. If the Government develops a clear and sustained rural strategy, this untapped potential could be fully realised. As Baroness McIntosh concluded a “specific, tailored rural strand within the Government’s economic growth strategy, with buy-in across Whitehall departments, including the Treasury” is needed.
Overall, this debate underscored the urgent need for long-term, targeted solutions for rural communities. Whilst Baroness Hayman acknowledged many of the issues, sustained investment and rural proofing are vital for meaningful progress.
The Rural Economy Research Group remains committed to advocating for these policies and holding the Government accountable to ensure that rural economies are not left behind. To continue this work, the group is currently seeking sponsors to join its leadership team and support its mission to champion the rural economy. Please find out more about how to become a member here.