My Lords, I declare my interests as a rural business owner in Wales, as a committee member of Historic Houses in Wales and as a member of the CLA.
According to the inquiry by the All-Party Parliamentary Group for Rural Business and the Rural Powerhouse, Levelling Up the Rural Economy, rural jobs pay less than urban jobs and rural homes are less affordable than urban homes. Less than half of rural areas have reliable 4G phone coverage and fibre connectivity. The rural economy is 18% less productive than the national averageâa gap that, if reduced, could add £43 billion to the UK economy by creating potentially hundreds of thousands of jobs in areas so often affected by underemployment.
Rural areas urgently need better infrastructure. It takes between five and five and a half hours, via two changes, to get from Harlech to Cardiffâa journey of only 150 miles. We are way behind our European neighbours when it comes to rail connectivity and a simple fare structure, let alone high-speed rail services. This affects business and private travel for adults but is felt most severely by young people in the countryside trying to access skills training or job interviews. If the Government are serious about getting more young people the skills they need to get into secure, well-paid jobs then they should look at subsidising transport for those seeking training, further education and job interviews. Improving digital connectivity and physical infrastructure in rural areas must be a priority for this Government to generate long-term economic growth and prosperity across the UK.
The shortage of affordable housing is felt acutely in rural areas. Applications for small-scale housing developments that would sustain services within the local community, such as schools, post offices and pubs, are too frequently rejected. Too often the choice is presented as a binary one between large-scale developments that would drastically alter and overburden a community or no development at all. The approach of a small number of homes in a large number of villages would lead to welcome and sustainable growth in those areas.
Applications also take far too long to be considered without any guarantee of success. The NFU went so far as to describe the planning process in rural areas as
âoften tortuous, unduly lengthy and beset by challengesâ.
Coupled with that, fewer than half of local planning authorities have an up-to-date local plan. That must change if we are to get the right developments built in the right place.
This is particularly true for applicants trying to convert redundant buildings into commercial workspaces, which could boost productivity by allowing those in rural areas to expand or set up new businesses. There is often a lack of commercial spaces and services to support business, driving those people away from rural areas and putting excess pressure on urban areas. Providing additional funding for more planning officers would speed up this process and help alleviate some of the problems. Changing the National Planning Policy Framework definition of brownfield sites, which currently excludes agriculture, could have a transformative effect on development in rural areas.
Productivity could also be increased by tweaking existing taxation without the need for new legislation. The Chartered Institute of Taxation said that the current system
âdoes not encourage farmers to develop more efficient production processes.â
The super-deduction on capital allowances is available only to big businesses, not family partnerships or sole traders, highlighting the discrepancy between incorporated and unincorporated businesses. We should be encouraging farmers to invest in new farming technologies such as AI and automation by opening up super-deductions to these categories and allowing unincorporated businesses to access R&D tax credits.
The Government have stated that they see the best route to combating inflation and the cost of living crisis as being through economic growth. If that is true, the rural economy must also be part of this plan. The challenges faced by rural areas are equally important in England, Scotland, Wales and Northern Ireland, so the UK Government must work in unison with the devolved Administrations if their levelling-up mission is to be a success.
Yes, we need to restore nature; yes, we need to build more homes and develop businesses in an environmentally sustainable way; but we must also do away with the narrow and stifling perception that the countryside is a museum. If levelling up is to be a success, we must unlock the economic and social potential of the rural powerhouse.
6.51 pm