The All Party Parliamentary Group on The Rural Powerhouse publishes £43bn blueprint for economic growth in the countryside

The All-Party Parliamentary Group (APPG) on the Rural Powerhouse has published a new report on how to level up the rural economy.

It follows one of the most comprehensive inquiries ever to be conducted by a parliamentary body into the health of the rural economy. The APPG took evidence from over 50 industry bodies, charities, campaign groups, companies, academics, and business leaders. The report concluded that no government in recent memory has had a program to unlock the economic and social potential of the countryside.

This has resulted in the fact that the rural economy is 18% less productive than the national average. A gap that, if reduced, could add £43bn to the UK economy.

Findings from the report included noticing a broken planning system which has failed those who live and work in rural areas. Defra also lacks the policy levers necessary to make a significant change to the rural economy. A lack of skills provision is causing rapid ‘brain drain’ in rural areas, and urgent action is required to address labour shortages and supermarkets’ price-setting powers. In addition to this, the government is also backing away from commitments to provide everyone with full-fibre and 4G, plus the current tax system is disincentivising business investment and diversification.

Co-Chair of the APPG on Rural Business and the Rural Powerhouse and MP for York Outer, Julian Sturdy, stated that, 

“This report sets out a comprehensive growth plan, one that will create jobs, spread opportunity and strengthen small towns and villages across the country. We recognise the unique set of challenges that the Government is facing at the moment, but this makes the need to grow and strengthen the rural economy more, not less important.”

Julian's Co-Chair, Lord Cameron of Dillington added, 

“It is vital that government understands that rural Britain is not a museum, but instead is an important part of the national economy that deserves the chance to succeed. The report provides an economic blueprint that will help any Government seize the capabilities of the countryside and create the long-term economic growth necessary to boost/enrich/enhance our rural communities – in a cost-effective and timely manner.”

Commenting on lack of affordability in the countryside, CLA President, Mark Tufnell outlines,

“The country can no longer afford to ignore the potential of the rural economy and the prospects of the millions of people who live within it. Rural businesses are ready to expand, creating good jobs and opportunities for people from all walks of life – but a lack of interest from government is holding them back. Homes are often unaffordable for local families. Well-paid jobs can be scarce. And broadband can be painfully slow. All this means leads to an exodus of talented people who are too often forced to move to more urban areas.”

The Rural Services Network gave evidence to the enquiry and is regularly quoted in the report.

- The full report can be downloaded here

- The full news article published on the CLA website can be accessed here