The Chancellor's Autumn Budget 2024 presents a critical juncture for rural communities across the UK. As we pore over the details in the comprehensive budget document, the Rural Services Network (RSN) acknowledges the government's efforts to address broad economic challenges while also noting areas where rural areas continue to seek further support.

Initial Response

The Autumn Budget 2024 arrives at a time when rural communities face unique economic pressures exacerbated by geographical and infrastructural factors. While the budget outlines a plethora of investments—from public services to infrastructure—the RSN remains cautious. This year's budget brings a mix of challenges and opportunities, with several key provisions directly affecting rural life and economy.

Fuel Duty Stability

The government's decision to halt any increase in fuel duty next year is particularly critical for rural communities. The RSN acknowledges this move as vital for residents and businesses in rural areas where dependency on personal and commercial vehicles is high due to sparse public transport networks. This measure will help manage living costs and support rural mobility.

Enhanced Funding for Homelessness Initiatives

The budget includes a £230 million allocation to combat homelessness and rough sleeping. The RSN welcomes this initiative but emphasizes the necessity for specific strategies that address the often-overlooked phenomenon of hidden homelessness in rural areas. Effective targeting of these funds is essential to ensure that the most vulnerable, who are out of the public eye, receive adequate support. Image Credit: Centre for Homelessness Impact, Jeff Hubbard

Increase in Stamp Duty for Second Homes

The rise in stamp duty on second homes has been received positively by the RSN as it aims to address the housing affordability crisis in rural communities. This policy could discourage speculative buying, thereby helping stabilise housing prices and improve access for local residents.

Retention of Right to Buy Receipts

Allowing councils to retain 100% of Right to Buy receipts marks an important policy shift. The RSN views this measure as potentially transformative for rural housing markets, providing local authorities with the means to reinvest in affordable housing. However, the RSN advocates for safeguards that allow rural areas to opt out of extending Right to Buy to Housing Association properties to protect their housing resources.

Local Government Funding Enhancements

Despite the £1.3 billion increase for local government services and an additional £600 million for social care, concerns persist over the adequacy of these sums for rural areas. The current funding formula is insufficient and the RSN has long advocated for adjustments that ensure equitable service provision across all communities.

Support for SMEs

The increase in Employer’s Allowance for National Insurance is lauded as a significant step in supporting SMEs, crucial for the rural economy. This measure is expected to alleviate some financial pressures on small businesses, fostering growth and sustainability in rural regions.

Broadband Infrastructure Expansion

Proposals to enhance broadband connectivity in rural areas have been met with keen interest by the RSN. With digital access increasingly seen as essential, the RSN highlights the importance of substantial improvements to ensure rural communities are not left behind in the evolving digital landscape.

Fair Distribution of New Funding

The RSN stresses the need for equitable distribution of funding across all sectors mentioned in the budget, including education, healthcare, and infrastructure. Ensuring that rural areas receive their fair share is vital for fostering balanced development and national prosperity.

Sectorial Reactions and Further Comments

National Farmers Union (NFU):
The NFU has raised significant concerns regarding the revised inheritance tax measures, which could impact the financial sustainability of family-owned farms across the country. Read more.

District Councils’ Network:
There is a palpable disappointment regarding the perceived inadequacy of the adjustments in funding for district councils, which have not kept pace with the demand for services, particularly in rural districts. Read more.

National Housing Federation:
This body has welcomed the budget’s focus on housing but calls for additional specific measures to ensure that the increased stamp duty on second homes directly benefits rural communities. Read more.

Plunkett UK:
Plunkett UK has reacted cautiously, noting the government's commitment to growth and investment while seeking clearer support mechanisms for rural community-owned businesses. Read more.

Community Transport Association UK:
Further details are awaited on how increased investments might support rural transport services, which are crucial for connectivity and accessibility in less urbanised areas. Read more.

Local Government Association (LGA):
The LGA has highlighted a mixed impact from the budget, with some positive steps on funding but a call for more tailored approaches to support the unique needs of rural areas. Read more.

Federation of Small Businesses (FSB):
The FSB has praised the increase in the Employment Allowance for National Insurance but warns that other changes might impose heavier burdens on small rural businesses. Read more.

Action with Communities in Rural England (ACRE):
ACRE calls for more targeted funding and policies to address the unique challenges faced by rural communities, emphasising that one-size-fits-all approaches often fall short. Read more.

Institute for Government:
The Institute notes the budget's ambitious scope but underscores the need for detailed plans on how proposed investments will be effectively implemented, particularly to ensure that underfunded rural areas receive adequate support. Read more.

Kerry Booth, Chief Executive, Rural Services Network: "In response to the recent Autumn Budget, the Rural Services Network recognises the steps taken to address some of the pressing needs of rural communities. However, more targeted actions are necessary to truly capitalise on the potential of rural areas. As we continue to delve deeper into the details of the budget’s implementation, the RSN is dedicated to a thorough analysis to ensure that no community is left behind. It is imperative that the government commits to a long-term, strategic investment in rural local authorities to correct the historic funding imbalances. By enhancing funding allocations, we can ensure that essential services such as healthcare, education, and transportation are adequately supported, paving the way for comprehensive economic participation and improved quality of life in rural areas. Investment in rural communities is a crucial strategy for stimulating national growth. Strengthening rural economies will create a more balanced and resilient UK economy. The RSN is eager to collaborate with ministers and members of parliament to amplify the rural voice, ensuring that the unique challenges of rural communities are addressed with informed, effective solutions. Together, we can build a holistic approach that champions robust development for all regions, enhancing the nation’s economic landscape and enriching the lives of its rural communities".