 The Countryside Alliance – the leading voice of rural Britain - welcomes George Osborne’s cut in fuel duty in the Autumn Statement and a renewed focus on the rural economy through the Rural Economy Growth Review. Alice Barnard, Chief Executive: “George Osborne has provided a much needed boost to the rural economy by scrapping the planned rise in fuel duty and investing in projects ranging from rural broadband to countryside tourism. But he is pinning a lot of his hopes for growth on a simplification of the planning legislation, for which it is essential that working with rural communities is prioritised to ensure our natural environment and the British countryside is protected from over-development.”
The release of the Rural Economy Growth Review, which coincided with George Osborne’s Autumn Statement, has seen several key successes for the Countryside Alliance – the voice of rural Britain – campaigns on the rural economy and people who live in rural areas.
1. Fuel duty
Given the current high cost of fuel, to support motorists and businesses, the Government announces that the 3.02 pence per litre (ppl) fuel duty increase that was due to take effect on 1 January 2012 will be deferred to 1 August 2012, and the inflation increase that was planned for 1 August 2012, currently expected to be worth 1.92ppl,2 will be cancelled.
Countryside Alliance response:
This represents a significant move by the Government and will be welcomed by motorists up and down the country, but particularly those living in rural areas for whom running a car is a necessity due to the long distances between essential services and the relatively low number of public transport options.
We would also urge the Chancellor to review the 3p rise announced for next August, depending on the economic circumstances at the time. Due to the high rate of VAT, motorists are still going to feel the pinch and the future viability of rural businesses and communities remain under severe threat from the spiralling costs of driving.
2. Improving mobile network coverage
As announced on 3 October 2011, the Government will invest up to £150 million to improve the coverage and quality of mobile network services for the five to ten per cent of consumers in areas of the UK where existing mobile network coverage is poor or non-existent, with the aim of extending coverage to 99 per cent of the UK population. The Government will begin procurement by spring 2012 with businesses and consumers benefiting from improved coverage from early 2013 onwards.
3. Rural broadband
The Government will support rural broadband by:
•• opening the £20 million Rural Community Broadband Fund to help ensure more rural homes and businesses receive superfast broadband. If it is successful the Government will consider extending it; •• working closely with North Yorkshire County Council, one of the pilot areas for superfast broadband rollout, to ensure businesses and consumers get greatest benefit from the new service and to allow other local areas to learn from this experience; and •• considering new approaches to make the roadside telecommunications network available to enable points of access for third party services such as broadband for rural businesses.
Countryside Alliance response:
George Osborne has today reaffirmed the Government’s commitment to superfast broadband. This will be welcomed by rural areas that currently suffer from poor or unreliable mobile phone coverage.
However, for this money to be truly beneficial the Government needs to ensure the forthcoming spectrum auction provides a competitive market that will not only deliver mobile coverage for all, but help deliver the Government's commitment for universal broadband.
The Countryside Alliance is also leading calls for the infrastructure that will provide this boost to rural mobile phone coverage to be carried out in full consultation with local residents. As the planning debate has shown, countryside communities will always support growth provided they are fully involved in the process.
4. Rural Growth Networks
The Government will provide approximately £15 million to fund up to six pilot Rural Growth Networks to demonstrate how local authorities and LEPs can use the planning regime and targeted infrastructure investment to support economic growth in rural areas. This includes £2 million over the next three years to support rural enterprises led by women, particularly in Rural Growth Networks.
5. Rural tourism
The Government will commit £25 million to promote rural tourism, including a new £10 million fund within the RDPE to develop rural tourism destinations.
6. Empty homes
The Spending Review allocated £100 million to bring problematic empty homes in areas of high demand back into use as affordable housing. The Housing Strategy announced a further £50 million of funds to help tackle some of the worst concentrations of empty homes in areas of low demand.
Countryside Alliance response:
We are pleased to see the announcements made in the Rural Economy Growth Review and Autumn Statement which focus on improving the situation for rural businesses through measures such as the roll out of 6 pilot Rural Growth Networks and support for British producers with the food and drink action plan.
We would also urge the Government to support British farmers further by extending their buying standards guidance to ensure Local Education Authorities (LEAs) and hospitals look to local producers to fill their food needs. We believe this will ensure high quality meals for pupils and put taxpayers’ money back into the local economy to support local farmers.
We are pleased to see £100 million from the Rural Development Programme for England (RDPE) being directed towards helping small and medium sized enterprises boost their competitiveness, including much-needed help and support for businesses in the Uplands.
The CA has often pointed out the huge problem of a lack of affordable housing in rural areas. Although a simplification in the planning rules will help in expanding the number of homes – provided local people are consulted prior to any new developments – a commitment to bringing empty homes back into circulation is very welcome.
7. Local transport
The Government will invest an extra £50 million to be distributed to all local transport authorities outside London through the Integrated Transport Block.
Countryside Alliance response:
In amongst the large-scale infrastructure projects that pose a threat to countryside areas, a commitment to helping local and rural transport is much needed and something the CA has called for on several occasions. Rural services are crucial components of life in the country and provide the ‘glue’ which holds these communities together, particularly in remote areas. Public transport is needed for people in rural areas to access essential services but services tend to be less frequent. We welcome the announcement of extra money for local authorities to provide bus services but would also strongly recommend a review on the extent to which bus services in all areas have had to be cut back once the cuts outlined have taken hold.
Such a review should take into account the social costs and benefits of bus services throughout the country. |