Rural Growth Must Power National Renewal

Newly released figures from DEFRA’s Rural Economic Bulletin reveal a stark warning: productivity in England’s most sparsely populated rural areas has fallen to just 84% of the national average, down from 92% in 2001.

This steady decline highlights a growing rural divide - one that cannot be ignored if the government is to succeed in its mission to “kickstart economic growth” and “raise living standards in every part of the United Kingdom.” Rural areas must be seen not as a challenge to overcome, but as an opportunity to embrace.

The government’s Plan for Change sets out a bold ambition for national renewal, focused on higher productivity, greater regional equality, and delivering economic growth that is felt by everyone. But this ambition will fall short unless it fully includes the rural workforce, rural businesses, and rural communities.

In many rural places, the talent and entrepreneurial drive are already there—but opportunity is not. Poor digital connectivity, limited transport links, and a shortage of affordable homes for workers are all acting as barriers to growth. These challenges are fixable. What’s needed is targeted investment and policy commitment that recognises rural potential and unlocks it.

Improving productivity in rural areas is not just about economic statistics—it’s about people. It’s about enabling local residents to access well-paid work without needing to move away, about allowing rural businesses to compete on a level playing field, and about ensuring young people growing up in rural areas have a reason—and the means - to stay.

This isn’t a side issue. It’s a central part of delivering the government’s economic growth mission and ensuring that growth is genuinely inclusive. If we are to build a fairer, more balanced economy, then rural productivity must be a priority.

Kerry Booth, Chief Executive, Rural Services Network: "The Rural Services Network urges the government to make this a defining feature of its growth agenda. That means investing in the infrastructure that connects rural areas to opportunity: faster broadband, stronger transport networks, and housing that supports a thriving workforce. Rural areas are ready to contribute more to the national economy - now we need the investment and commitment to do so".

For a deeper exploration of the economic potential within rural communities—and how unlocking that potential can drive national prosperity - see the Rural Coalition's recent report: Reigniting Rural Futures. The report highlights that with proper investment, rural areas could contribute an additional £19 billion annually to the UK economy, highlighting the significant untapped potential of rural communities.