Select Committee on Scottish Affairs Second Report


3  Rural poverty

83. It is too easy to assume that poverty in Scotland is limited to deprived urban areas, made visible by problems such as poor housing or graffiti. In the course of our inquiry, witnesses told us of a 'hidden' poverty in Scotland's expansive rural areas.[92] We took evidence on the particular challenges of rural poverty, including visiting rural communities to see at first hand the difficulties they experience. Our findings confirm that there is a danger of looking at rural poverty through an urban lens. This problem is compounded by the lack of an appropriate statistical measure for rural poverty in Scotland, as noted above.[93]

Income and employment

84. Poverty in rural areas is exacerbated by specific factors including the availability and quality of employment opportunities, transport costs and a dispersed population. A failure adequately to address these factors may mean that rural communities do not enjoy a similar reduction in poverty to that urban areas: as evidence submitted by Highlands & Islands Enterprise noted:

absolute earnings levels in the Highlands and Islands have risen hugely over the last 25 years, as a result of the general growth and diversification of the economy. In relative terms, however, our position has worsened slightly over the last few years, measured against the national and EU averages.[94]

85. Relatively poorer employment opportunities and lower pay are the main causes of rural poverty. Ms Carron McDiarmid, Head of Policy and Performance at the Highland Council, told us that "average pay in the Highlands is 91% of the Scottish average and 86% of the UK average, but [there is] also a higher rate of part-time and seasonal working."[95] Work is often concentrated in relatively low-paying sectors such as tourism, agriculture and fish processing and may be of a highly seasonal nature. Local authorities are making efforts to attract higher paying sectors, such as universities and financial services, but progress is slow.[96]

86. Additionally, a number of rural communities are affected by a high level of migrant workers, principally from Eastern Europe, due to the nature of the rural economy and the labour market opportunities. In many cases, local businesses are dependent upon migrant workers because they have exhausted the workforce available in a small rural community.[97] The existence of a substantial migrant worker population presents challenges in terms of accommodation and other services and alters the profile of the local labour market in ways that have not yet been fully investigated.

87. The problem of low wages is compounded by a relatively higher cost of living in many rural areas. Increased costs of fuel, the need for transport to access services which may be highly geographically dispersed and a lack of cheaper shopping facilities all contribute to higher living costs. Witnesses noted that a car was an essential, not a luxury in rural communities which are served very poorly, if at all, by public transport.[98] We urge the UK Government, the Scottish Executive and local authorities to consider ways in which the high costs of transport in rural areas can be alleviated.

88. In contrast, some costs can be lower in rural areas. Housing is generally cheaper (with some notable exceptions) and residents benefit from a lower crime rate and the amenity of an attractive environment. Nevertheless, as Mr Jim McCrossan, Community Learning and Regeneration Manager at Argyll and Bute Council, said:

They used to say you cannot eat the scenery and, in actual fact, a lot of it goes to conceal the problems because you can have—and we touched upon this earlier—communities where there is affluence and poverty side by side in rural areas and it is less visible and people are often less willing to identify themselves in that category too.[99]

89. The age profile of rural communities in Scotland is also distinctive. The Highlands and Islands has a disproportionate number of pensioner households, which tend to be of lower income, and a corresponding gap in younger age groups from 18 to 34.[100] Further, the population is ageing at a faster rate than that in Scotland as a whole.[101]

Provision of services

90. The sparse and dispersed nature of many rural settlements makes the provision of services more logistically difficult and hence more expensive: "Accessing essential services such as post offices, banks and cash machines can prove complex and restrictive".[102] These difficulties apply to Government or other public sector services, as well as to private and voluntary movements. For example, the development of credit unions, which provide affordable and responsible lending to low income households (and are discussed in more detail in Section 5 below) has been much more limited than in urban areas in Scotland.[103]

91. We took a significant amount of evidence from rural local authorities, who have a crucial role in ensuring that services are delivered effectively. Some witnesses argued for targeted benefits to be applied to rural areas, due to the distinctive challenges they face.[104] Councillor Harry McGuigan, COSLA's Spokesperson on Community Safety and Well Being, called for targeted programmes from the UK Government to offset the extra costs incurred in the provision of services to geographically remote communities:

there are these high costs as far as the rural situation is concerned and it is there simply because of the nature of the thing, but it could be argued, of course, that the political representation has not been robust enough over the years. Those unique types of costs cannot really be met by the people living in the particular area. We cannot say to them, "Patient, help yourself", but maybe there should have been a bigger recognition from central government in allocating resources to alleviate some of the difficulties and problems that are faced there.[105]

92. In 2005, the Scottish Executive launched a programme aimed at improving the provision of services to rural communities by identifying a number of Rural Service Priority Areas. The extent of support provided through this programme was, however, limited.[106] When we asked Stewart Maxwell MSP what action was now being taken to address rural poverty, he said that current strategies were under review:

clearly we do accept there is deprivation in rural areas and many people are as poor in rural areas as urban areas. We take that on board. That is why the Cabinet Secretary for Finance, John Swinney, met with a number of Island and Highland leaders around 28 October to discuss some of these problems and we were just at the beginning post that meeting of looking at the possibility of establishing a complementary mechanism for looking at rural poverty.[107]

93. It may be that the balance of targeted versus universal benefits needs to be different in rural and urban areas. It is likely that the Scottish Executive would be closely involved in any future programmes aimed at providing extra support to rural authorities.

94. In their evidence, UK Government Ministers pointed to the important role of co-location in delivering services to rural communities, as well as the growing use of IT to allow remote access to services.[108] In this Report, we have highlighted the importance of co-ordinating initiatives in different administrations and policy areas in order to reduce unnecessary duplication and to ensure that policies are 'poverty proofed' across the board. This is doubly important for rural communities, where accessibility is key and a range of welfare advice must be made available from a single point of contact.

95. We would highlight as an important deficiency the lack of a single voice campaigning for the interests of rural communities in Scotland. Scotland, unlike England, has no Commission for Rural Communities. Many of our witnesses supported the creation of such an institution, in order to ensure that policy is subject to a systematic 'rural-proofing'.[109] We were given an example of the consequences of this lack of coherence in the closure of Jobcentre Plus offices.[110] Whilst it may be possible to rationalise the number of offices across the UK as a whole, the closure of an office in a rural location can mean extended travel times for job seekers in an area where public transport is patchy and can therefore impose significant extra expense.

96. We conclude that rural poverty presents its own challenges, which will not be solved by an approach tailored to the small pockets of deprivation characteristic of urban poverty. It is vital that the Government's anti-poverty policies are subject to 'rural proofing'. Witnesses have suggested that the establishment of a Commission for Rural Scotland might be a way to give rural communities a stronger, unified voice and we hope that the Government and the Scottish Executive will consider this proposal. Greater investment in outreach is needed to ensure that geographically dispersed communities have equal access to services.



92   Q 72 Back

93   See paragraphs 19 to 21. Back

94   Ev 3 Back

95   Q 44 Back

96   Qq 3, 9, 10, and 44 Back

97   Qq 39 and 86 Back

98   Ev 326 and Qq 42-26 Back

99   Q 798 Back

100   Q 3 Back

101   Q 42 Back

102   Ev 17 Back

103   Ev 17 Back

104   Q 16 Back

105   Q 800 Back

106   Ev 19 Back

107   Q 844 Back

108   Q 908 Back

109   Ev 19, Qq 97 and 107 Back

110   Q 97 Back


 
previous page contents next page

House of Commons home page Parliament home page House of Lords home page search page enquiries index

© Parliamentary copyright 2007
Prepared 17 December 2007