Environment, Food and Rural Affairs CommitteeWritten evidence submitted by Northumberland County Council
In response to the inquiry announced by the Environment, Food and Rural Affairs (EFRA) Committee of the House of Commons, below is a summary of responses to the questions presented in this inquiry.
1.0 Government Policy
1.1 Government policy needs to explicitly acknowledge the important inter dependencies across the diverse range of settlements that are often characterised as “urban” and “rural” areas. The often, city centric, critical mass based growth strategy of Government does not allow sufficient scope for the wider hinterland to deliver both economic growth and to effectively contribute to sustainability by maximising environmental and social assets. A more place sensitive approach and recognition of the role that all places can play in the nation’s future prosperity is needed and should be embedded consistently across Government Departments and policy.
1.2 Greater flexibilities are needed to allow rural communities to take opportunities available to them. Major barriers to growth and sustainability are also present in more urban areas, but in a rural context look very different and have a different and multi-faceted impact on communities and business. Examples include:
Transport connectivity—including public transport, strategic transport infrastructure, distances to and between towns and cities and employment sites all cause specific barriers to markets, jobs, business premises, customers, suppliers, financial services, postal services and training.
Superfast Broadband (SFB)—as with transport connectivity limited access to SFB provides similar limitations to effective markets, the potential for SFB to transform the way public services are delivered in rural areas (eg telehealth systems) thus reducing the “rural premium” is a vital issue.
Lack of joined-up approach (between businesses, sectors, local authority areas, etc.) leading to duplication and not maximising potential, this can be exacerbated by the other factors mentioned here such as connectivity.
Isolation and exclusion—with the specific barriers of access to education, training and advice, health and social care and other public services such as libraries, community facilities etc., fuel costs, decent housing and an ageing population.
Pockets of deprivation are masked by areas of affluence in rural areas—this leads too many areas not qualifying for assistance, making them less attractive to businesses.
A rural premium exists whereby delivering services in rural areas can become prohibitively expensive as the population density is too low for optimum efficiency.
Affordable Housing—the lack of an appropriate mix of housing stock in rural areas limits the potential for wider sustainability impacting on school viability for instance. The twin challenge of low wages, high housing costs and associated fuel costs with certain housing tenure prevalent in rural areas further exacerbates poverty in isolated communities.
1.3 Whilst new activities such as rural growth networks are a welcome addition, rural areas have the scope to take greater advantage of potential opportunities adding value to growth in urban places. Potential areas for action include:
Scope for the development of additional enterprise incentives to encourage growth and investment. Business and developers can be attracted and develop in rural communities if levels of gap-funding and other incentives are available as in cities and if such policies are sensitive to the size and nature of businesses in rural places.
More flexible finance products are needed for new and micro-businesses which recognise that rural businesses may not be high growth and do not always require such large amounts of public investment but tend to have lower failure rates and strong local ties.
Recognition of the potential impact of the new business rate system whereby rural authorities stand to receive significantly less resource, to assist in the delivery of local services to residents and businesses.
A range of support mechanisms are needed to enable communities to understand the new planning system and develop neighbourhood plans that whole communities support often across large areas with dispersed communities
Finance models to help improve energy generation in remote areas and improve energy efficiency for older rural properties.
The issue of constrained capacity for future growth in and around economic hubs in rural areas, as such places are protected by green belt policy. Different approaches to “growth” are needed which unlock capacity.
The potential of new sectoral growth, for instance through sub sets of agriculture, forestry and fisheries like aqua culture, renewable energy and also energy and natural assets such as underground coal, methane, and shale with carbon capture and storage and also tapping into the wider ecosystem.
Enabling a mixed economy—As public sector reform gathers pace the value and role of organisations like Development Trusts and Social Enterprises are important in enabling a localist approach to delivering services and supporting rural communities. Excellent examples of this approach exist in Northumberland with Trusts running key services such as libraries and tourist information hubs.
Supporting and recognising the valuable role of the tourism and land based sectors and their impact and potential to develop and support other sectors whilst increasing its own future resilience, value and quality. For example, the tourism and land based sectors, as well as providing much needed jobs and services help to create and maintain the environment on which the wider economy depends, to which a range of office based knowledge intensive activities are attracted. The renewable energy sector is developing within this environment, as well as creating an attractive environment in which people find desirable to live in thus supporting rural and urban sustainability.
Developing more flexible approaches to skills development, such as sharing apprenticeships across SME and micro businesses to achieve critical mass. Employability provision and support to marginalised young people that effectively delivers in rural areas is also important.
1.4 The issues affecting rural areas are interdependent and as such government policy should also be developed with this in mind, a process of reconciling these issues for the benefit of rural communities as part of policy and decision making would be helpful. Government need to be explicit about these issues in their Rural Statement with buy in across departments setting out how local authorities and other bodies can collaborate with them.
2.0 Rural Grants and Funding
2.1 Northumberland is working with Durham and Gateshead as part of the Rural Growth Network Pilot, to achieve the following objectives:
Piloting four different approaches to hub delivery: live-work units, smart-work units, incubation units and a hub that targets creative industries (on a National Trust estate).
Focus on developing better links and collaboration between geographically isolated rural enterprises
Testing the different types of accommodation needed to support enterprises at different stages of growth and development.
Early estimates of growth impacts are 40 new businesses created, 200 businesses supported, 300 jobs created/safeguarded.
2.2 Again, this series of pilots should not stand in isolation from other Government initiatives and departments, and be fully integrated within the Rural Statement and broader government policy, for instance regarding BIS growth policy and mainstream enterprise activity. The future role and targeting of the post 2014 European Funding Programme will be important in supporting the growth of rural communities.
3.0 Rural Communities Policy Unit (RCPU)
3.1 Northumberland along with its rural neighbours has been instrumental in establishing the North East Local Enterprise Partnership (NELEP), the North East Farming and Rural Network (NEFRAN) and the successful Rural Growth Network (RGN) Pilots bid. NELEP has played a full part in national networks for LEPs and has often been represented at rural networks such as the DEFRA LEP Roundtable.
3.2 Moving forward, as the NELEP and NEFRAN are developing its communications and partnership arrangement to ensure that a range of channels enable the widest level of participation and engagement of rural stakeholders. The approach of the RCPU will be fundamental to how this develops and what networks are established across Government departments to ensure the rural message is heard and understood. The ability of the unit to provide the independent champion and advocate role of CRC from within Government remains a concern. The potential lack of a wealth of robust evidence on rural needs and issues is also worrying given the need for continued advocacy and information across departments.
3.3 Ensuring that policies are “rural proofed” is an important role for the RCPU. This could be better placed however, within the Cabinet office, ensuring that all Government policies go through this process. RCPU could provide a critical friend/challenge role to ensure that all departments mainstream this activity into their policy making processes, giving guidance and support to enable this to happen. There is a danger that if RCPU are responsible for rural proofing policies, there is the potential for it to be seen as having a “policing” role, enforcing a system onto policy makers, which happens after policies have been written, rather than the process being integral to policy and service development. It is important, to be effective that the process is owned by Government departments, and doesn’t become a “tick box” exercise. The principles identified in the “Local Level Rural Proofing” resource, demonstrates examples of best practice in policy making and service delivery, regardless of whether it’s in an urban or rural area. This also applies at a local level, where local authorities and organisations need to be encouraged to do the same. This links back to the first point around Government policy, around LEPs and Health & Wellbeing Boards having an integral role, in enabling this to happen.
September 2012