Government response
Introduction
1. The Government welcomes the Report of the Environment
Food and Rural Affairs Committee on the Potential of England's
Rural Economy. We welcome the work that has gone into producing
a report into such a wide ranging subject and the ideas it brings
to the Government's efforts to strengthen rural communities. The
current economic climate and its potential effects on rural areas
makes this report all the more timely. The economic downturn is
likely to have impacts across all regions and spread across both
urban and rural areas. So, for rural areas, Government must be
able:
- to quickly identify any particular
rural issues that may require specific or targeted action;
- to ensure that the mainstream measures designed
to support the economy are having a proportionate impact in rural
as in urban areas
The intelligence received by the Government on the
impact of the current economic situation on different places does,
therefore, needs to be effectively rural-proofed. Defra, BERR
and the RDAs are putting in place a mechanism to ensure the effective
rural-proofing of the regional state of the economy reports that
RDAs have been commissioned to produce by the National Economic
Council. And the Commission for Rural Communities (CRC) has been
asked to contribute too at national level. So far (December 2008)
the hard evidence is patchy and is not indicative of any particular
rural effects. But rural economies are heavily dependent on small
and medium sized businesses and this is one of the sectors thought
to be most under threat. So this is an area that will remain under
scrutiny.
2. Government responses to the Committee's individual
recommendations are set out below, but at the outset it might
be worth putting the Defra strong rural communities Departmental
Strategic Objective in the context of broader Government policy
towards and aspirations for rural areas.
3. The needs of rural people are the same as those
of people living in inner cities and suburban areas. The Government
seeks the same positive outcomes for rural people as for those
living in non-rural areas. We seek equity and fairness for rural
people. For that reason, those needs will be largely addressed
by the same parts of the public sector—although the challenges
posed by geography and demography create the need for some careful
and specific thinking about delivery of outcomes for rural communities
and businesses.
4. Defra is responsible for taking a coordinated
view of the Government's policies in relation to rural areas,
but not for the development or implementation of those policies,
which remain the responsibility of other Government departments.
Defra itself holds few of the policy levers. Its role is one of
promoting the interests of rural people, businesses and communities
within Whitehall and with regional and local government, and using
evidence to influence policy development and delivery. Most delivery,
whether urban or rural is through national and regional programmes
or via local authorities. Defra's role is to listen and promote
action at the appropriate level to ensure the rural voice is heard
and specific rural needs are addressed.
5. At the national level Defra works with other Government
Departments and the Commission for Rural Communities (CRC). Defra
adds value by helping those Departments understand the rural dimension
of their responsibilities. Defra does this through:
- improving the evidence base
(including specially commissioned R&D);
- maintaining effective two-way links with groups
representing rural issues and with those responsible for policies;
- using that evidence and the links with rural
communities to help advise and inform other departments whose
focus might otherwise naturally fall on those urban areas which
contain the highest population concentration—some examples
are included in this response to illustrate this role; and
- sponsoring the CRC which acts as a rural adviser,
advocate and watchdog.
6. We agree with the Committee that Government policies
and interventions must be designed effectively to meet the needs
of people living throughout the country. The Intermediate Outcome
on rural economic growth was designed to assess the performance
of the Government's social and economic policies in rural areas
by comparing outcomes and trends in rural areas to the national
picture. To better understand and influence economic performance
of rural areas Defra developed a new measure of rural productivity
in conjunction with the Office for National Statistics. This evidence
base will be used to inform the delivery of economic support for
all rural areas and to encourage a particular focus on those rural
areas with the lowest levels of performance.
Committee Recommendations and Responses
The Government's response to the Committee's individual
recommendations are set out below.
THE POTENTIAL BENEFITS
1. We recommend that Defra economists make an
effort to quantify the potential of the rural economy as this
would assist in making a case for the necessary use of resources
to fully address the challenges arising from the rural economy
that this report and others identify. (Paragraph 1)
During oral evidence, the Committee was particularly
interested in obtaining from Defra an estimate of the value of
the economic potential of rural areas to compare with that contained
in the Rural Advocate's report. As outlined below, a full response
to that report, including an analysis of the estimated 'value'
of rural economies will be published shortly. However, we do have
reservations regarding the basis for the estimates used. In developing
the response to the Rural Advocate's report, Government has carried
out a thorough analysis of the issues raised.
We do agree that it is important that all levels
of Government have an effective understanding of the reasons why
some areas, both urban and rural, perform less well than others,
including the spatial dimensions to any differences.
Defra is a joint delivery partner for PSA7 "Improve
the economic performance of all English regions and reduce the
gap in economic growth rates between regions". Our contribution
to this PSA focuses on the following question; "Analysis
of trade-offs: can the risk of increased intra-regional disparities,
with particular regard to peripheral rural areas, be minimised?".
This work builds on the evidence that, whilst most
rural areas are performing quite well, there are rural areas where
levels of economic performance are below average and prospects
for growth are more limited. These tend to be in areas more distant
from economic mass. The aim is to provide the evidence base suitable
to support action at the appropriate level to limit intra-regional
disparities based on geography. A key element of this work involves
making sure that the relevant players understand the effects on
rural areas of economic interventions so that the potential of
peripheral rural areas to contribute to regional economic performance
can be recognised and realised.
Defra is working with the London School of Economics
to expand the work programme of the Centre for Spatial Economic
Research to look into the relative economic performance of rural
areas.
THE BURGESS AND TAYLOR REVIEWS
2. The Burgess and Taylor reviews are an indication
of the Government's willingness to consider what further measures
could be taken to strengthen the rural economy and address the
continuing problem of housing availability for those on low incomes.
What are needed are innovative schemes such as Community Land
Trusts to build upon the exceptions policy in local development
frameworks and to kick start these initiatives. We urge the Government
to publish detailed responses to both reviews, setting out whether
it agrees with their findings, what specific actions it intends
public bodies to take as a result, and an implementation timetable.
(Paragraph 6)
The Government will be responding to both reviews
shortly. Defra and CLG are working together to respond to the
recommendations made by Matthew Taylor. A cross Whitehall working
group has been brought together under the chairmanship of Defra
to develop a joint response to the recommendations made in the
Burgess Review. This group includes HMT, BERR, CLG, DIUS and DWP.
UNDERSTANDING THE RURAL ECONOMY
3. Based on the concerns put to the Committee,
we recommend that Defra carry out a review of whether planning
decisions by National Park Authorities reflect the correct balance
between protecting the natural environment and ensuring that communities
located within national parks are sustainable and will survive.
(Paragraph 9)
The Government's planning policies for development
in National Parks are contained in Planning Policy Statement 7
which encourages policies in Local Development Documents (and
Regional Spatial Strategies if necessary) to support suitably
located and designed development necessary to facilitate the economic
and social needs of National Parks. There is no presumption against
development in National Parks although, naturally, stricter policies
apply to major development proposals. Government keeps all of
its planning policies under review but has no reason to believe
that those for National Parks in PPS7 are working in any way other
than as intended.
In pursuing the National Park statutory purposes
of conservation and recreation, the National Park authorities
have a duty to foster the economic and social well-being of their
local communities. The Government does not consider the authorities
are failing to do this or that it is necessary to review the planning
decisions taken by them. It is the responsibility of every local
planning authority to take into account all material considerations
when deciding a planning application and this would include the
environmental, economic and social sustainability of the proposed
development. Local planning authorities, including National Park
authorities, are best placed to consider the various issues raised
by each planning application and the implications for their area.
It is considered inappropriate for the Government to second guess
any decisions reached by a National Park authority, unless, of
course, it came before the Secretary of State for Communities
and Local Government as an appeal or called-in application.
In any case, the Government does not accept that
the National Park authorities have failed to correctly balance
the need to protect the natural environment with the need to ensure
that park communities are sustainable and survive. The National
Park authorities have done an excellent job at conserving the
high environmental quality of the Parks but this has not been
at the expense of the communities and businesses within them.
Research shows that National Parks help businesses to prosper
and that a healthy natural environment and a healthy rural economy
go together. To lay a greater emphasis on the economic development
of National Parks would threaten the very qualities of natural
beauty and opportunities for sustainable recreation which attract
people to them - and which attract businesses to relocate in or
near them.
The planning application in the Yorkshire Dales National
Park referred to in the report was one that was made in 1990 and
permitted in 1991. It is difficult to see what lessons could be
drawn from such an old case. But it is notable that the application
site was on land owned by the National Park authority which was
gifted to the business. The site was a sensitive one which fronted
the Dales Countryside Museum, a traditional building of considerable
character. That is why the permission was conditioned to ensure
traditional materials appropriate to such a site were used.
| Socio-economic projects funded by the National Parks include:
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| The New Environmental Economy Programme ran from 2002 to March 2008 in the Peak District National Park and offered grants to businesses developing new products and services based on using the high quality environment of the Peak District as a business asset.
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| Several Authorities are involved in projects to revive rural skills, for example the 'Traditional, Boundaries Traditional Skills' project in the Northumberland National Park and the bursary scheme to support the training of reed and sedge cutters and millwrights in the Broads.
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| The Parks' Sustainable Development Funds (SDF) have been used to support many local businesses for example, in the Exmoor National Park SDF grant was used to help a micro-brewery enterprise with the additional costs of converting a disused agricultural building.
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4. The differences between running a business in a market town
and a smaller rural community seem to us at least as significant
as the differences between running a business in a market town
and a city. Defra should ensure that its rural affairs targets
take this into account and that its data enables it to distinguish
between different types of rural areas, so that its policies can
be tailored accordingly. (Paragraph 11)
We agree that all rural places are not the same. Indeed there
may be significant diversity between the issues faced not only
by different types of rural settlement e.g. markets towns and
smaller rural communities but also between similar types of settlement
in different parts of the country. We fully recognise that all
places are different, that is why Government policy is increasingly
designed to create the regional and local flexibility to respond
to the specific needs of specific places.
The Government's review of sub-national economic
development and regeneration (SNR)[1]
was published in July 2007. The review focused on improving the
economic performance of England's regions, cities and localities,
as well as tackling persistent pockets of deprivation. It was
based on the principles of managing policy at the right spatial
level; ensuring clarity of roles for those bodies acting sub-nationally;
and enabling places to reach their full potential. Defra is working
with other departments to ensure the guidance for single regional
strategies draws out the need to rural proof these strategies.
In October 2008, Government announced "Solutions
for Business—funded by government" a streamlined package
of 30 publicly-funded business support products accessed via Business
Link to help companies start, survive and succeed. This simplified
system will make it easier for all business, including those based
in rural areas, to find the right products to help them with common
business issues such as finance, innovation and skills.
THE MARGINALISATION OF RURAL AFFAIRS?
5. We are concerned that the decision to have
a rural affairs target that is a Departmental Strategic Objective,
rather than a cross-government Public Service Agreement, means
that less attention will be focused on realising the potential
of the rural economy, both across Government and within Defra.
The environment has clearly been Defra's number one priority,
and rightly so. However, this should not mean that rural affairs
struggle to attract the attention they deserve. We urge that,
in the next Comprehensive Spending Review, consideration be given
to making the rural affairs target a cross-government Public Service
Agreement. In the meantime, there is, at the very least, a strong
perception amongst those involved that rural affairs are being
marginalised in Defra and the Department should set out how it
intends to address this concern. (Paragraph 18)
The Government remains firmly committed to strong
rural communities. This is one of the eight key objectives (DSOs)
for Defra agreed with Treasury. The DSO is already cross government
in the sense that:
- the monitoring indicators for
the DSO reflect the breadth of Government policies few, if any,
of which are the direct responsibility of Defra;
- the programme board for delivery of the DSO is
cross -Departmental;
- rural mainstreaming of policy is a concept that
is accepted across Government already; and
- rural proofing is the responsibility of all government
Departments.
So all departments are engaged in the delivery of
the DSO in the same way they would be for a PSA.
We agree that the way the DSO works across departments
and the role that Defra plays may not be fully and widely understood.
Defra is currently considering ways to publicise more widely and
effectively information about the Strong Rural Communities Programme.
The question whether a formal PSA is appropriate
and would deliver anything different is an issue for the next
Comprehensive Spending Review.
WHAT IS A "STRONG RURAL COMMUNITY"?
6. We are unconvinced that "Strong Rural
Communities" is the most appropriate title for Defra's Departmental
Strategic Objective and are encouraged by the Minister's willingness
to consider alternatives. We recommend that Defra adopt the term
"Socially and Economically Sustainable Rural Communities".
(Paragraph 21)
We are grateful to the Committee for this helpful
suggestion and as the then Minister for Rural Affairs Jonathan
Shaw indicated in his evidence, we are happy to respond on this
point. We believe that the suggested change is a constructive
one which reflects the strategic aims underpinning the DSO. We
agree with the Committee that this better description should help
in engaging external organisations in the delivery of the outcomes
sought under this DSO.
INTERMEDIATE OUTCOME NO. 1: NEEDS OF RURAL PEOPLE
AND COMMUNITIES
7. We are concerned that having a mainstreaming
target that is part of a Departmental Strategic Objective, rather
than a cross-Government Public Service Agreement, will mean that
other departments will be less engaged in trying to achieve it.
We commend the good examples of rural proofing that we encountered
during this inquiry. However, we are not convinced that the approach
to rural proofing adopted by the Government and Defra is sufficiently
rigorous or systematic. The CRC already publishes an annual report
on rural proofing. To complement this, and to improve the mechanics
of rural proofing, we recommend Defra set out in its annual report
what work it does, on a department by department basis, to ensure
that rural affairs are factored into policy development, how it
monitors progress, and what criteria it uses to judge whether
rural proofing has been successful. Defra should be proactive
about approaching other departments to offer advice and should
not simply wait for them to contact it. (Paragraph 27)
The Government is clear that it is the responsibility
of individual policy departments to ensure that their policies
and delivery arrangements are equally applicable to people in
rural and urban areas.. We do, recognise that some support can
be beneficial and that a degree of monitoring can help to provide
rural people, communities and businesses with reassurance that
their interests have been taken fully into account. Defra supports
the Commission for Rural Communities which is already charged
with providing a challenge function for Government departments
(and others) on the extent to which policies are rural proofed.
Defra and the CRC are currently working together to improve the
rural proofing support available to departments. And both are
looking at ways in which they can adopt a more proactive approach
towards assisting other Government departments.
| The following are examples of Defra's work with Whitehall Departments over the past few months:
Broadband
Defra has continued to work with BERR and CLG on the Digital agenda, ensuring that rural areas are taken into account in broadband policy development. This has included working on a specification for a research project into communities likely to be left behind as the next generation of broadband rolls out. This will also identify the existing 'not spot' areas and identify possible solutions for action at community level, The Invitation to Tender is due to be issued shortly, the contract to be let in January, with the project report expected in May.
Affordable Rural Housing
Work is continuing on the response to the Taylor report with the aim of publication shortly. This work is led by CLG at whom the majority of the recommendations were aimed with support from Defra. A major focus of our contributions has been around recommendations relating to supporting delivery of the Government's target of 10,300 affordable homes in settlements of under 3,000.
Working in partnership with CLG Defra is funding a research and good practice project which will support the new Homes and Communities Agency to:
a) Identify, contact and encourage poorly performing Local Authorities to 'up their game' on delivery of rural housing.
b) Encourage high performing LAs to maintain performance and deliver even more quickly.
c) Identify gaps in knowledge and commission research/carry out work to fill these.
d) Identify, evaluate and disseminate good practice relating to rural delivery.
Throughout the course of the project, HCA will keep the current target under review and will provide advice on target setting to feed into the next spending review. We The HCA aims to recruit for the two specialist posts supporting this project before Christmas and is planning a major event to engage local and regional stakeholders before the end of the financial year.
Rural buses
Defra has continued to engage with DfT on its plans to make changes to the Bus Subsidy Operators Grant (BSOG), which currently provides £413m a year to support marginal bus services, many of them in rural areas, DfT is keen to adjust the BSOG, which is currently linked directly to fuel usage, in order to improve value for money and energy/emissions efficiency, Defra accepts the need to improve the current subsidy arrangements, but has been clear that any changes should not adversely affect people living in rural areas.
Community Empowerment
Defra is actively working with CLG on participatory budgeting issues. It sits on the cross government working group. Parish councils in rural communities raise a precept which must be spent locally. It is an ideal candidate for participatory budgeting. It is also working with NALC (the National Association of Local Councils) and ACRE (Action with Communities in Rural England) on a package of proposals to support the empowerment agenda to complement funding provided by CLG.
Rural Culture
Defra has worked closely with DCMS on developing the Government's response to the case put forward by the Rural Cultural Forum for greater Government engagement with and support for rural-based arts, media and other creative organisations. Ministers have confirmed that they recognise the social and economic value of the arts and creative industries in rural areas and have indicated that they would be happy to meet with the Rural Cultural Forum to explore how rural interests can be better reflected in mainstream arts and cultural policy making.
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INTERMEDIATE OUTCOME NO. 2: RURAL ECONOMIC GROWTH
8. Focusing the economic intermediate outcome solely on low-performing
areas is a wasted opportunity. Although it is important to improve
poor economic performance, the DSO should not ignore rural areas
that are performing well, but could perform even better with more
support. We urge Defra to adopt a broader intermediate outcome
to support economic growth in all rural areas. (Paragraph 30)
The Government's Rural Strategy 2004 set out our three key priorities
for rural policy. On Economic and Social Regeneration our priority
is—'supporting enterprise across Rural England, but targeting
greater resources at areas of greatest need'.
Essentially the DSO is about using Defra's resources
and rural expertise to be able to be able to identify whether
and to what extent there are systemic issues in relation to the
delivery of Government policy in rural areas. By definition this
will tend to point up any areas where there is disadvantage not
just economic underperformance.
The Government does want to see all rural economies
fulfilling their realistic economic potential within environmental
limits. Defra works closely with colleagues across Whitehall and
in the Regional Development Agencies to ensure that the mainstream
mechanisms designed to support businesses are effectively rural-proofed.
The evidence shows that most of rural England is
well-connected with strong links to nearby towns and cities and
good access to local markets and job opportunities. That is why
most of our rural areas are already performing strongly in terms
of economic growth.
However, the evidence also shows that there are some
rural areas where levels of economic performance are below average
and prospects for growth are more limited. It is right therefore
that the principle focus of the DSO should be on those areas where
rurality is generally understood to place a constraint upon the
potential for growth. Our greatest challenge is those areas which
are remote from major urban centres.
THE DATA
9. We are concerned about the level at which the
indicators operate. We agree with Defra that, for some indicators,
it is not meaningful to compare data at a very local level. However,
for the majority of indicators, comparing data at a district level
will not enable Defra or other agencies to identify specific problems
and target interventions accordingly. Our experience suggests
that remote rural communities and market towns are encountering
different problems, but we cannot see how the majority of indicators
would pick up on this, or any of the other location-specific problems
we encountered. We recognise that Defra is dependent on other
departments and the Office for National Statistics for much of
its data. We recommend that it identify the indicators for which
it would be useful to have more detailed results and set out how
it intends to work with its data providers to obtain this level
of information in future. (Paragraph 37)
Defra has no particular difficulty in identifying
or obtaining the data it requires in order to undertake an effective
assessment of the outcomes in rural areas. It has an excellent
working relationship with the Office for National Statistics who
were collaborators in developing the sub-regional rural/urban
analysis of Gross Value Added (GVA) used as our measure of productivity
in the DSO. These data sets, like all of the DSO indicators utilise
the lowest level data currently available for any area urban or
rural.
It would be a misapprehension to conclude that it
is more challenging to access data at the right level for rural
areas than it is for any other areas. The whole of Government
is committed to improving the quality of the data we use to inform
policy and Defra works closely with colleagues from across Whitehall
to achieve this aim.
It remains the case that a significant amount of
administrative data is available only at District level which
makes it less useful in assessing the needs of individual communities,
whether rural or urban. This tends to be for practical reasons
of data collection or ethical ones relating to the potential for
disclosure of personal information.
It was previously the case that a certain amount
of administrative data was gathered at spatial scales against
which it was not possible to apply either the rural definition
or the Local Authority District Classification. However, recent
work by the Government Statistical Service Regional and Geography
Group (GSSRG) comprising representatives from Defra, Birkbeck
College, CLG, Government Office Network, CRC and the Association
of Regional Observatories has applied the rural definition to
higher administrative geographies, including counties, police,
and fire, waste and transport authorities. Over the coming months
the rural definition will be applied to Primary Care Trusts, crime
and disorder partnerships and parliamentary constituencies. So
this is an area where improvement and refinement is currently
being sought. More details can be found on the Defra Rural Statistics
webpage:
http://www.defra.gov.uk/rural/ruralstats/rural-definition.htm.
THE MISSING PIECES
10. Although it is encouraging that rural areas
are performing well according to the criteria and measures Defra
has selected, we see little value in having a Departmental Strategic
Objective until 2011 that Defra has already largely achieved.
We recognise that maintaining success is important, but we question
whether this should be the focus of Defra's only rural affairs
DSO. We acknowledge that no target or set of performance indicators
can be all-encompassing. However, we are concerned that there
are significant gaps in what Defra is measuring in its rural communities
DSO. We would like to see a DSO that is sufficiently flexible
and fine-grained, to enable the problems in different communities
to be recognised and tackled. We recommend that Defra consult
the Commission for Rural Communities on whether the indicators
for the DSO represent the best practicable way of identifying
the issues affecting rural communities. Defra should revise its
indicators in the light of this advice. (Paragraph 41)
It is important that we retain continuity in measuring
performance against the DSO across the spending period. For that
reason any changes at this stage would probably be unhelpful.
But in any event the DSO indicators have been chosen
to reflect the Government's overarching priorities for all communities
rural and urban. They were not chosen as 'easy targets' against
which we could show early success. Whilst we are pleased that
the Committee considers that we have already largely achieved
our objectives we feel that there is much still to be done. This
is not just in the areas which are not yet 'green' on the traffic
light system, but also in areas where there is apparent success.
Even here, Defra is working to get behind the indicators to see
if the headlines are masking any issues. However, Defra does not
seek to undertake detailed work on every one of the diverse issues
affecting people living in rural places. This would duplicate
activity undertaken elsewhere in Government and represent poor
value for money. As the DSO documentation makes clear, the public
service needs of people living in rural areas are addressed by
the same parts of the public sector that work for all of us. Our
objective is not different or better outcomes for people living
in rural areas than those enjoyed by people living elsewhere but
equity and fairness for people where ever they live. The purpose
of the DSO indicator set, therefore, is to identify any systemic
issues that appear to be related explicitly to rurality.
It is equally important that we are clear about the
distinct roles and responsibilities of Government at all levels.
It would be neither feasible nor appropriate for Defra to develop
an indicator set designed to performance-manage outcomes at the
level of individual communities. Addressing such issues at the
community level is the role of Local Government who do this within
the context of the Local Area Agreement framework and the National
Indicator Set on which this DSO has been based.
The Commission for Rural Communities remains closely
involved both in the formal monitoring of the DSO, via the DSO
Partnership Group, but also informally through its close involvement
with Defra on all rural issues.
11. If Defra does decide to proceed with the current
indicators, it should be careful to treat its indicators as no
more than that: indicators of success. Defra must recognise that
some important aspects of life in rural communities, such as transport,
communications, planning and further education, are not covered
by its mainstreaming indicators. It should also recognise that
there may be problems that are not reflected by a simple comparison
with the national average. It should set out how it intends to
identify and tackle these problems. (Paragraph 42)
Defra is aware of the diversity of rural experiences
and fully recognises that the relative strength of many rural
communities does not preclude the existence of wide divergences
from the average at local level. We do not assume that all rural
communities or rural people enjoy the same outcomes. That is why
the Government's focus is on mainstreaming rural policy through
local delivery mechanisms which recognise that all communities
are different.
However, it is important in this context that we
are able to distinguish between localised issues and concerns
and evidence of any systemic challenges associated with rurality.
This is what the indicators underpinning the DSO are designed
to do. This baseline of information is not an end in itself; it
helps us to prioritise our activity to ensure that we are focused
on those issues where there is greatest evidence of need. The
DSO highlights two particular areas for specific focus: affordable
housing and economic productivity. These reflect the issues raised
most frequently with the committee during its inquiry.
We recognise that there are aspects of rural life
that are not covered by these indicators, which were specifically
chosen to focus on outcomes rather than inputs or outputs. We
continue to work closely with our partners in the Commission for
Rural Communities who produce a wide range of complementary data—such
as the regular State of the Countryside Report which addresses
many of the issues raised by the Committee. The joint Defra/CRC
work on rural proofing and mainstreaming, mentioned above, will
also help to ensure that Defra and the CRC are plugged into the
activities of Government Departments and others who are developing
policies or delivering services which impact upon people in rural
areas.
In respect of further education we would reiterate
the statements made by Jonathan Shaw in his response to Michael
Jack's letter of 21 July 2008 in which he noted that "Skills
and education post-19 are indeed included in the performance indicators
for the Departmental Strategic Objective". Educational attainment
is covered under IO (intermediate objective) 1 which includes
data on full time entrants to higher education. Further education
and skills are also included, under IO 2, including: the percentage
of the working age population with no qualifications; the proportion
of the working age population with NVQ2+; the percentage of the
working age population with higher qualifications; and on the
job training.
DEFRA'S RESOURCES
12. We accept that the reduction in the number
of people working on rural affairs in Defra should be viewed in
the context of a paring back across the civil service. We also
agree that Defra should be judged on outputs not inputs. However,
there must be some link between the two. Defra should acknowledge
that there are concerns about its capacity to deliver on its rural
affairs commitments. If it believes that these concerns are unfounded,
it should explain why. Its delivery plan for its DSO should indicate
how it will make best use of the resources at its disposal. In
the light of these observations, Defra should publish in the next
six months a detailed commentary on its current rural affairs
work. This would provide greater insight into its rural development
role than that afforded by the limited commentary in its departmental
annual report. (Paragraph 44)
As indicated in the evidence given by Jonathan Shaw,
Defra believes that the current level of resources devoted to
rural issues is sufficient to deliver against its functions and
priorities. Rather than a six month review of its rural work,
Defra will seek opportunities to publicise the work that it has
been doing, particularly in partnership with others.
KEY DELIVERY BODIES
13. Defra is in a difficult, although hardly unique,
position: it has a DSO that cannot be achieved without significant
assistance from other departments and bodies. Its success in achieving
its rural affairs target will depend heavily on its ability to
influence these key players. To this end, it should produce a
strategy for working with RDAs, local authorities and rural community
councils to ensure that it achieves the best possible outcomes
for rural areas. The strategy should set out what assistance Defra
requires from these bodies, how it will communicate these needs,
when it will require feedback and how this will be provided. (Paragraph
45)
Whereas Defra is finalising a strategic partnership
agreement with the RDA network and has a funding agreement with
Rural Community Action Network that describes the work RCCs will
do on its behalf, the Government agrees that there is room for
greater clarity in defining the role that Defra plays in relation
to the work that the RDAs, local authorities and Rural Community
Councils undertake on behalf of rural people, communities and
businesses. Defra does not control or dictate the work of these
organisations, nor does it have direct responsibility for most
of the policy areas that will be of interest but it does work
with them to support their rural activities. However under the
RDA sponsorship framework, RDAs are required to apply the cross-cutting
principle of economic opportunities for all (which includes rural
areas) to all their business. RDAs are required to set out in
their annual reports how they have applied the cross-cutting principle
and what effect it has had. In addition the regional economic
performance PSA provides a forum for cross-Whitehall discussion
about the economy, and the consideration of rural economic performance
as part of that mainstream discussion. Alongside the joint Defra/CRC
rural proofing and mainstreaming work, mentioned earlier, Defra
will be looking at ways to further define and maintain key working
relationships with the agencies the Committee mentions.
REGIONAL DEVELOPMENT AGENCIES
14. RDAs are doing some good work in rural areas,
but there is still a perception that they are urban-focused and
uninterested in small-scale projects. The extent to which this
view is justified is certainly debatable. However, the opinions
that were expressed to us indicate that RDAs are having difficulty
communicating what they are doing in rural areas and we recommend
that the East of England Development Agency, as the lead RDA for
rural affairs, set out what action it intends to take to address
this. (Paragraph 49)
The RDAs welcome the Committee's acknowledgement
that RDAs are doing some good work; a significant number of businesses
in rural areas have been assisted to improve their performance.
The percentage of firms getting business support in rural areas
As part of its lead role, East of England Development Agency (EEDA)
recognises the need to better communicate the work that RDAs are
undertaking in rural areas to partners and stakeholders. It is
working across all RDAs to showcase RDA activity better to a wider
range of stakeholders. EEDA is reviewing its current communication
mechanisms and is developing a practical and effective communication
strategy with a range of mechanisms that will both address this
issue in both the short and longer term and integrate both national
and regional dissemination of information. The cross RDA Rural
Affairs Network has already discussed the communication strategy
at its meeting on 12th November.
| Examples of work undertaken by RDAs in rural areas include
A site in Okehampton in West Devon (one of the 60 most rural authorities in England) was acquired by SWRDA to secure grow on space for the adjacent industrial park. The centre itself is being targeted at businesses looking for their first commercial premises and easy in/easy out terms. The development as a whole is enabling local people to work closer to home as opposed to commuting to Exeter.
EEDA funded a rural gateway project to test and demonstrate how to deliver to rural areas. Once the methodology had been proven it was mainstreamed as the Business Link Gateway. A specific Partnership Manager is now funded within Business Link to promote generic Business Link services to business located in rural areas or businesses rural by nature.
RDAs are delivering £554m of Rural Development Programme for England (RDPE) into rural areas. The funding is being used to make strategic investments in line with regional priorities, identified by partners and stakeholders working together to produce Regional Implementation Plans. RDAs have also approved around 60 Local Action Groups which will be investing funds, using a bottom-up approach, to meet identified local needs.
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15. We do not want to add unnecessarily to the reporting burden
of the RDAs and agree that there should be no additional formal
mechanism to report separately to Defra on activity that may contribute
to the DSO. However, such information should form part of the
single reporting framework, and Defra and the RDAs should discuss
progress against the DSO informally at the quarterly meetings
that take place between the Minister and the chairs of the RDAs.
Defra should include in its departmental annual report an assessment
of the RDAs' success in delivering the rural aspects of their
responsibilities. (Paragraph 52)
The RDAs are represented on the external-facing Partnership Group
established to support the delivery of the DSO, and will be able
to report on their activity in support of the DSO at the Group's
regular meetings. In addition, Defra and RDA officials have established
close working relations while agreeing the rural components of
RDA Corporate Plans. In addition to the RDA sponsorship framework
reporting arrangements mentioned above. There are also many informal
mechanisms where progress is discussed, for example during the
recent round of strategic visits to all RDAs by members of Defra's
Management Board and the regular one to one meetings between Defra's
Secretary of State and EEDA's Chair.
As has already been noted, responsibility for providing
an external challenge to all levels of Government in their rural
proofing efforts rests with the CRC. The joint Defra/CRC project
on rural proofing and mainstreaming will build on these relations
and cover the RDAs' activities in rural areas. As noted, the outcomes
of this project will be published, and will be summarised in the
Departmental annual report.
LOCAL AUTHORITIES
16. The changing map of local government, with
more unitary authorities, will have a profound effect upon rural
areas. It is vital that Defra works with the Department for Communities
and Local Government to conduct research into the impact on the
delivery of services in rural areas. (Paragraph 54)
The 'places agenda' led by Communities and Local
Government (CLG) has established the infrastructure (e.g. Local
Area Agreements and Local Strategic Partnerships), governance
(e.g. performance framework and inspection regime) and accountability
(e.g. citizen information, engagement and means of redress) needed
for local areas to identify and respond to local priorities.
Defra has developed a range of approaches to respond
to this changing landscape. These include:
- working closely with CLG, in
particular, to ensure that the guidance on Local Area Agreements
to both Local Strategic Partnerships; and to Government Offices
in their challenge role reflects the requirement to evaluate rural
needs as part of this process. To this end Defra is also looking
to improve contact with the Local Government Association and other
Local Government representatives, such as Rural Services Network
and County Councils Network.
- funding ACRE (Action with Communities in Rural
England) and the RCAN network of RCCs with £3.4m a year to
undertake strategic influencing to promote the interests of rural
people and communities at county and community levels.
- Funding Regional Rural Affairs Forums to work
with their local GO and RDA to provide a rural voice at the regional
level. Each works in a way that best reflects regional needs and
priorities, but is expected to meet a baseline set of roles and
responsibilities to ensure consistency. The 8 Chairs meet quarterly
with the Rural Affairs Minister and the Local Government Association
(LGA).
- Resourcing the Commission for Rural Communities
to plays a role in supporting and encouraging the effective rural
proofing and through identifying and championing key areas where
rural people and communities may need particular support.
Defra's 2005 Local Authority District (LAD) Classification
was developed to allow rural proofing of the wide range of statistics
available at this geographic level. In April 2009 significant
changes in the structure of local government come into force.
Nine new unitary authorities will be created to replace 37 district
authorities (and 7 county councils) resulting in a new total of
326 LADs in England.
These changes have necessitated an update to the
classification. The Government Statistical Service Regional and
Geography Group (GSSRG) commissioned a working group comprising
representatives from Defra, Birkbeck College, CLG, Government
Office Network, CRC and the Association of Regional Observatories
to look at this issue.
The Unitary Authorities which will come into effect
in April 2009 have been categorised using this 'new' LA classification.
An overview of these changes has been circulated to regional partners
including the Government Office Rural & Intelligence networks
and the Association of Regional Observatories. The DSO indicators
will be revised so that the baseline and reporting years use a
consistent classification. This will avoid a break in the time
series during the CSR period.
17. Defra must ensure that the knowledge that
was accumulated during the Rural Delivery Pathfinders project
does not go to waste. It should not be solely up to individual
authorities involved to disseminate best practice; Defra should
provide support. We are particularly interested in the suggestion
in the Rural Delivery Pathfinder report that there should be a
Defra/local government rural policy group and we urge Defra to
consider whether such a group could be used to help it achieve
its rural communities DSO. (Paragraph 56)
Defra agrees that the Rural Delivery Pathfinders
project has been of considerable value and that its messages do
need to continue to be properly promoted. Whilst those in the
best position to do this are the participating authorities themselves,
Defra is providing support to those authorities to disseminate
the messages from the programme. Defra launched the national report
"Rural Challenges, Local Solutions" at the LGA Improvement
Conference in February 2008 where an exhibition stand and briefing
session gave the opportunity for all local authorities present
to find out more about the programme and its outcomes. A series
of regional press notices, targeted to the regional audience,
was issued at the same time.
Defra worked closely with the pathfinder authorities
and IDeA to create over 40 best practice case studies to showcase
the work of the programme. These case studies are available on
the IDeA website at
http://www.idea.gov.uk/idk/core/page.do?pageId=7921369
.
At the time of the conference, an e-mail alert drawing
attention to this resource was sent to IDeA members to coincide
with the launch of the report.
Defra continues to ensure that the best practice
and messages arising from the pathfinder programme are disseminated.
Over the summer, Defra invited the pathfinder authorities to submit
suggestions to further promote the pathfinder work at the local
level. As a result, some additional projects to disseminate the
learning during 08/09 have been agreed with funding from Defra.
In line with the recommendation in the national report,
Defra is in the process of establishing a Defra/Local Government
rural policy group. This will be an informal, official-level sounding
board for policy discussions on matters of particular importance
to local authorities. It will include representatives from the
LGA, local authority practitioners, CRC, CLG, Rural Community
Action Network, Government Offices and the Regional Development
Agencies. The aim is to provide a strong network that will meet
initially in early 2009. One of the aims of the sounding board
will be to consider the progress of mainstreaming rural needs
and interests into local policy-making and delivery. This will
include tracking progress on the recommendations in the pathfinder
report—recognising ownership of the recommendations at the
appropriate level.
THE COMMISSION FOR RURAL COMMUNITIES
18. Although we accept that the PSA/DSO process
was conducted largely within the civil service, we are both surprised
and disappointed that the CRC was not invited to provide Defra
with advice on the development of the rural communities DSO, given
that this target will be central to Defra's approach to rural
affairs until the next Comprehensive Spending Review. We recognise
that the CRC has limited resources, but we urge it to do all that
it can to advise Defra on how best to implement its DSO in the
light of the concerns expressed by the witnesses in this inquiry.
We seek its assurance that it will play a key part in monitoring
Defra's success in achieving the DSO. We are concerned that the
CRC's budget has almost halved since its creation in 2006. If
the CRC is to be an effective adviser, advocate and watchdog,
the Government must ensure that it has sufficient resources to
carry out these tasks. (Paragraph 58)
The Commission for Rural Communities remains a vital
partner for Defra and the whole of Government in delivering the
right outcomes for rural areas. Defra has, in particular, involved
the CRC closely in its DSO governance arrangements and is working
with the CRC on a number of initiatives e.g. rural proofing where
CRC acts as a statutory adviser to Government. The issue of resources
is one that is kept under review against other priorities.
Department for Environment, Food and Rural Affairs
December 2008
1 http://www.hm-treasury.gov.uk/sub-national_economic_development_regeneration_review.htm
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