House of Commons - Environment, Transport and Regional Affairs

Select Committee on Environment, Transport and Regional Affairs Seventh Report

RURAL WHITE PAPER

Social policy

28. One of the first problems we encountered in this Inquiry was defining what constituted a rural area and the rural population.[54] This is no academic debate since it may ultimately define whether a given area qualifies for a particular source of funding or not. Definitions were considered by the PIU report which found at least 12 different definitions of 'rurality' in current use within central Government alone.[55] Many definitions adopt the format of 'less than X thousand' approach to defining settlements which are rural. However, X varies from 3 (the Housing Corporation) to 10 (the old Rural Development Commission) and such definitions often exclude the market towns which sit at the heart of a rural area. The PIU report ultimately adopted a definition based on local authority districts. There is no clear, settled and widely accepted definition of precisely what constitutes a rural settlement or district but most result in 'rural areas' accounting for around three-quarters of the land mass and around one-fifth of the population.

SERVICES

29. The quality of public service provision in rural areas was a concern for many witnesses. There are intrinsic problems in providing services in rural areas, particularly related to the sparsity of population and smaller numbers of people. As such, the costs per head of providing similar services such as health and education are inevitably higher in rural areas than in urban areas. Many of the memoranda of written evidence reiterated the arguments made by the Rural Development Commission that the Standard Spending Assessment (SSA) discriminated unfairly against rural areas, in failing to take account of the higher costs of service provision which they encounter.[56] The arguments of what constitutes a 'fair' split of funding between urban and rural areas is a complex one and we did not attempt to examine it in any detail. However, we do not consider that it is realistic to aim to provide the same density of services in urban and rural areas. One consequence is that the funding of rural areas should be needs-related, rather than linked to crude measures of sparsity. Most importantly, given the severe problems faced by inner city areas, we could not in general support a switch of resources from urban local authorities to rural ones. Nevertheless, we urge the Social Exclusion Unit to carry out detailed work into social exclusion in rural areas to establish the most appropriate actions to tackle it.[57] The importance of affordable housing in rural areas is dealt with separately below. While it is difficult to unravel appropriate spending levels in England, it is clear that there is a higher level of spending in rural areas in Scotland than in England. The Scottish Office Central Research Unit observed that the higher level of spending could not be explained by factors such as sparsity of population or the level of unemployment.[58] We cannot see a justification for the disparity in public spending between comparable rural areas in England and Scotland and recommend that the differences be eliminated as soon as possible.

30. While it may not be possible to provide the same level of public services in rural as in urban or suburban areas, the Government could make clear what minimum level of service is to be provided.[59] The Minister for the Environment made clear his wish to see "minimum standards of public service whether it is for transport or housing or post offices or shops" specified in the Rural White Paper.[60] The Council for the Protection of Rural England argued that the paper should

As noted earlier, the Rural White Paper must focus on defining what rural areas can expect from Government and ensuring that there are mechanisms to provide those services. We recommend that the Government make clear what levels of service will be provided in rural areas. 'Service plans' should be drawn up at county level to define how service provision and transport facilities will combine to deliver services effectively to rural people. We wish to stress the importance of delivering an integrated transport policy in rural areas, in particular in effecting through ticketing, enabling smooth transition between car, bus and rail for the purposes of a single journey.

POST OFFICES AND VILLAGE SHOPS

31. There has been a continuing decline in the number of rural post offices and village shops: research from the Rural Development Commission in 1997[62] found that 42% of rural parishes had no shop and the number of Post Offices in rural areas has fallen from 9,700 in 1994 to 8,900 today[63] and continues to fall. The economic and social role of such services has been much documented[64] and the closure of a post office has severe consequences for a village. The potential future role of post-offices was addressed in detail by some witnesses:

Witnesses called for greater support for these facilities and we agree that the central requirements of policy should be to ensure that village shops and post offices remain the focal point for the provision of a range of services to rural areas. The Countryside Agency told us of the growing success of their Village Shops Development Scheme which offers grants to improve shops in villages.[66] In 1998/99, 254 grants were approved at a total cost of £600,000 and we look forward to continued expansion of this important scheme.

32. The role of Government in ensuring the future of village shops and post offices is two-fold: firstly, the Government offers them rate relief of 50% where they are the last shop or post-office in a settlement of less than 3,000 people and have a rateable value of less than £5000. Local councils can increase the rebate and extend it to other shops or post-offices with higher rateable values. The Government must assist the continued existence of these facilities by continuing to offer rate relief, with consideration given as to whether the level of 50% currently available should be increased.[67] Secondly, the Government must ensure that its policies do not have an adverse effect upon these services. A case in point is the Government's proposals for post offices, detailed in the Post Office White Paper.[68] We heard evidence from some witnesses that changes to the method of paying benefits before sub post-offices have been computerised could hit rural post offices hard and lead to further closures.[69] Clarification of how the automated scheme will work is required. The local Post Office has long been a focal point for villages: its retention is essential for the well-being of the community. Post offices should not be closed where communities would suffer severe adverse consequences. In the future, we expect post offices to have important roles to play in facilitating internet based services and in offering a broad range of financial services. There is a clear need to ensure individuals have access to cash payments made locally. The Government must move rapidly to re-confirm that individuals will continue to receive benefit payments through the Post Office and that any loss of income to the Post Office brought about by the changing pattern of payments should be offset by additional opportunities to gain custom. We fear that if they do not do so there will be a loss of some rural post offices.

A NEW ROLE FOR SUPERMARKETS

33. One of the principal threats to the livelihood of village shops has been the rise of out-of-town supermarkets. We considered in detail the Environmental Impact of Supermarket Competition in a previous report[70] and concluded that "out of town supermarkets have had serious and undesirable effects on town centres and village shops"[71] As part of that inquiry, we heard several vivid, but depressing stories about the decline of local shops. The convenience of such supermarkets has diverted customers away from village shops which now fulfil only a complementary role, being used for odd items of shopping forgotten in the weekly shop or to replace items which run out in between trips to the supermarket. In many cases, this level of local shopping is not large enough to sustain a village shop and closures are occurring all the time. Supermarkets have had a further, negative impact upon rural economies: their supply chains tend to operate at a national or international level. This is in direct contrast to the way village shops typically operate, with many locally sourced products available. It should also be remembered that the supermarkets' use of much larger-scale supply chains inevitably brings greater use of transport and higher environmental costs. The ever-growing dominance of the supermarkets is eroding local markets for local produce and has brought changes to the rural economy.

34. It is interesting to note that the English Tourism Council and the Regional Tourist Boards are charged with "encouraging tourism businesses to source and promote the use of local goods and services"[72]: we would like to see these organisations pressing food retailers to source locally. There is some potential for small businesses to successfully push their goods onto the shelves of large retailers and we were particularly impressed with the success of some companies.[73] Local production can be good for the environment as well as the economy of a given area. By not making greater use of such local products, supermarkets are contributing to the decline of both.

35. The Government has a responsibility to ensure that supermarkets are not working against the interests of the communities they serve. Supermarkets also have a responsibility to help maintain the economy and environment of the areas in which they operate. They could work with, rather than against, rural shops by adopting a number of relatively simple changes to practice which would ultimately benefit both supermarkets and village shops. We recommend that:

national chains should sell key products through village shops;
the growing supermarket delivery services should aim to use rural shops as dropping-off points;
supermarkets should aim to sell a much larger range of locally-sourced products.

We recommend that the Government work with the major supermarkets to develop detailed plans of how to achieve these aims.

36. Supermarkets are not alone in disregarding the needs of local communities and economies: the provision of rural banking services has recently become the focus of attention. Many high-street banks are in the process of reducing the number of rural branches which they operate. Like supermarkets, the banks must accept some responsibility for the communities on which they rely for their business. We are disappointed with the plans of the high-street banks to close many of their rural branches and urge them to consider carefully their responsibility to rural communities before proceeding.

37. Although positive action is required from the shops and banks serving rural areas, the role of individuals and rural organisations should not be forgotten. Rural residents and organisations will need to use their power as consumers to ensure that local shops and banks have a viable future.

Transport

38. Witnesses expressed three main concerns about rural transport: the price of petrol, the poor quality of public transport services and the impact of speeding cars in rural areas.

THE PRICE OF PETROL

Table 1: Real fuel prices: 1980 to 1999

Year	Real Fuel Price (pence per litre)
1980	71.0
1985	76.2
1990	57.3
1995	61.2
1999	75.6

Notes: Figures supplied by the House of Commons Library. All prices have been re-based to December 1999. For years, 1980 to 1990, price relates to 4-star leaded petrol and from 1995 to 1999, price relates to premium unleaded.

Table 1 shows the changes in real fuel prices since 1980: it is apparent that, until very recently, the price of petrol had remained steady or fallen. Although the fuel duty escalator (the automatic year-on-year increase in fuel duty which has been operated since 1993) has increased the level of duty, falling oil prices offset this increase until the late 1990s. Only since then has the oil price started to rise and this factor, combined with the higher levels of duty, have prompted protests about the automatic fuel duty escalator and, ultimately, its abandonment.

39. The increases in fuel costs have had a marked impact on poorer rural motorists and the ending of the automatic fuel duty escalator should bring some relief for these people. However, it is notable that similarly high real fuel prices in the early 1980s brought far less protest. Why this is the case is complex, but one of the reasons has been declining bus services and real increases in the price of public transport, which has resulted in many rural residents becoming effectively dependent upon a car for access to facilities and services.[74]

PUBLIC TRANSPORT

40. The overall level of public transport in rural areas, particularly bus services, was a key concern of witnesses and this undoubtedly increased the frustration of rural residents with the fuel duty escalator. As the British Chambers of Commerce wrote:

"adequate public transport is the key to the prosperity and health of rural communities. Without good, reliable, public transport, many local people without cars cannot travel to local businesses either as customers or employees ... This leads to increased poverty and isolation in rural areas."[

Research by the Countryside Agency showed the limited nature of the existing services: 44% of parishes have no bus service before 9am and 77% no service after 7pm.[76] If one considers these statistics alongside the fact that 20% of rural households do not have access to a car and 40% of women in rural areas do not have a driving licence,[77] it is revealed that large numbers of people in rural areas have very limited access to good transport. We recommend that rural transport policies should first and foremost aim to address the needs of those households which have limited or no access to a private car.

41. The poor state of public transport has been the result of decades of neglect, and policies of the Department of Transport which have given it a low priority. The present Government has taken steps to improve the situation. We were encouraged by the Minister's statement to us that:

One example of the Government's initiatives is the Rural Bus Fund, which put an additional £170 million into rural bus services for the last three years and has helped to fund some new services. Nevertheless, although it has been announced that this funding will be extended for at least a further three years, [79] there is clearly a need for greater amounts of funding over a longer period. Current efforts have not provided an acceptable standard of service. In particular, if rural regeneration efforts are to be focused on market and coastal towns, the transport links into these towns from the surrounding areas must be good enough to ensure that the opportunities brought about by regeneration are available to all. Bus services will undoubtedly form a key component of such links. There was a clear call from witnesses, backed by the Minister for the Environment for local determination of the nature of public and community transport services:[80] only by assessing the transport and access needs of a given population can an appropriate solution be determined. We were therefore particularly concerned to hear that "in the first round of Local Transport Plans, countryside traffic strategies are really Cinderellas in the process."[81] We look forward to efforts to improve rural public and community transport forming a major part of the Rural White Paper. Greater incentives are needed to encourage the development of car-sharing schemes in rural areas. The Government should ensure that rural transport needs are fully represented in Local Transport Plans.

SPEEDING MOTORISTS

42. The other main transport issue raised by witnesses was the problem posed by motorists driving at inappropriate speeds in rural areas. For example, Surrey County Council told us that a survey on crime and disorder in the county found that the top public concern was speeding and driving behaviour.[82] Certainly, national accident statistics appear to bear witness to the fact that this is a serious problem: the Council for the Protection of Rural England told us that

Similarly, the British Horse Industry Confederation told us that "there are about 3,000 accidents a year involving horses, that is about eight a day, and we very much line up with other bodies who request a very significant reduction in traffic speed levels on country lanes."[84]

43. The Government's speed review and national accident strategy have now been completed. We are encouraged that the speed review notes the problems of rural speeding. A key component of any strategy to tackle this problem must be a single speed limit applied throughout the villages of the UK and we were encouraged that Mr Meacher expressed his support for such an approach.[85] The Speed Review recommended "working towards 30 mph being the norm for villages". We urge the Government to act swiftly on the recommendation of the Speed Review to establish a speed limit of 30 mph in all villages. Drivers must be informed of the speed limit, not by a plethora of signs, but by simple signing defining the limits of the village. A publicity campaign to ensure that drivers know what speed limits apply in villages may be necessary.

44. There are similar concerns over the speed limits and current speed of vehicles in rural areas, outside of villages and particularly on country lanes. Although the Speed Review did consider these issues, we were disappointed that the recommendations it made centred on trials and further research. We hope that this process can proceed apace and that any changes in policy or speed limits can be made swiftly with good practice promulgated widely. We also received evidence about "Quiet Lanes": these are lanes with low speed limits and priority given to pedestrians, cyclists and horse riders. This is an idea backed by the Countryside Agency amongst others[86] and can be seen as parallel to the idea of 'home zones' which are currently being piloted in urban areas. Early progress in establishing quiet lanes might concentrate on single track roads. We recommend that the Government establish a system of 'quiet lanes' with reduced speed limits to protect pedestrians, horse riders and cyclists. Single track roads should have a speed limit of 30 mph.

45. However, setting speed limits and priorities and establishing 'quiet lanes' is only one-half of the answer: the issue of enforcement was raised by several witnesses.[87] Although improving road safety is now an objective for the police service, the enforcement of road traffic law has been seen as of low priority by too many police forces.[88] Well placed speed-cameras and speed-activated message signs along with physical measures to reduce speed could offer a cost-effective way of enforcing speed limits throughout rural areas. As with most transport issues, a greater degree of local control often yields better solutions. There is now a pilot scheme for funding the additional cost of speed cameras from speeding fine revenues, which should be extended. Speeding fines in rural areas should be hypothecated to cover all the costs related to enforcement.

54 Ev p74 Back

55 PIU Report, page 21 Back

56 Ev p40, Q120, Q202-206 Back

57 Ev p24 Back

58 New expenditure has been allocated to England, Scotland and Wales according to the Barnett Formula since the 1970s. Expenditure per head is now far higher in Scotland than in England. Total standard spending in Scotland was £1202 per head of population in 1996-97 compared with £922 in England. (Comparative study of local authority current expenditure in Scotland, England and Wales, report of the Scottish Office Central Research Unit, 1997). Back

59 Q92 Back

60 Q510 Back

61 Ev p60 Back

62 Rural Development Commission, Survey of Rural Services 1997 Back

63 PIU report p50 Back

64 Q92 and Q454 Back

65 Q92 Back