Excellence in Rural Housing

B3: Boosting the countryside economy:

The Rural Economy Growth Review

Speakers: Sarah McAdam

Head of Rural Communities Policy Unit Department for Environment, Food and Rural Affairs (Defra) Michael Talbot

Senior Policy Advisor, Growth Review Central Team Department for Business Innovation and Skills Chair: Amy Beddis

Policy Officer, South West National Housing Federation

Boosting the countryside economy:

The Rural Economy Growth Review NHF national conference

Bristol, 13 March 2012

Sarah McAdam, Head, Rural Communities Policy Unit, Defra

Michael Talbot, Senior Policy Advisor, Growth Review, BIS

Policy areas to promote future growth

Phase I (137 measures)

• Planning

• Regulation

• Trade & Investment

• Access to finance

• Competition

• Corporate Governance

• Low-Carbon

• Advanced Manufacturing

• Healthcare and Life sciences

• Digital/creative

• Professional & business services

• Retail

• Construction

• Space

• Tourism

Autumn Statement “Supply Side Reforms” (146 measures)

• Transport

• Finance for infrastructure

• Logistics

• Planning reform

• Housing

• Energy-intensive manufacturing

• Education and skills

• Employment regulation

• Public sector pay

• Regional rebalancing

• Mid-sized businesses

• Public sector procurement

• Science

• Publication of data (“Open Data”)

Draft slide for discussion

NHF: living, working

countryside conference

Rural Economy Growth

Review

Aim of the Review

“... To identify the actions that Government can

take to enable sustainable, diversified

economies in rural areas which are innovative

and dynamic, able to contribute to Green

Growth and to rebalance the national economy.”

Rural England

Is significant

No distinct,

homogenous

Rural Economy

Some differences

between rural and

urban economies

Remoteness a

Significant factor

• 19.6% of the population living on 86% of the land mass

• Rural Areas contribute an estimated 19% of national GVA

• Economy in rural areas broadly similar to urban economy

• Close links and interdependencies between the two

• Some sectors (e.g. Agri-food) and SMEs more prevalent

• Workplace earnings lower, slightly weaker productivity growth

• 2/3 rural people live <10km from town of 30k – peri-urban

• 1/3 more peripheral – 38% of most rural districts in bottom

quartile of GVA per work force job

7

BUT

Government’s vision – a rural economy which:

• Is diverse, resilient and an exemplar of the potential of

Green Growth;

• Realises a much higher return on the value of the

significant reserves of natural capital which rural areas

contain;

• Is well connected internally and to wider national and

international markets;

• Has a growing number of high-tech, creative and

knowledge based enterprises;

• Attracts and retains more highly skilled workers.

Stimulating sustainable growth in rural areas

Overview

1. Enabling Rural Businesses to Grow and

Diversify by:

• Launching a competition to support up to

6 pilot Rural Growth Networks, led by

Local Enterprise Partnerships or local

authorities, with funding of up to £15m.

This will include around £2m for women-led

enterprises.

• Targeting £100m of Rural Development

Programme for England funding to help

rural businesses;

• Consulting on the more flexible use of

farm buildings;

• Improving rural broadband by launching

the £20m Rural Community Broadband

Fund and supporting an initiative to

stimulate demand within rural

communities. This is on top of the £530m

already being spent on superfast

broadband;

2. Supporting Rural Tourism through a

£25m package to :

• promote tourism in rural areas;

• support the development of rural tourism

businesses;

• improve tourism in Areas of Outstanding

Natural Beauty; and

• support communities to develop local path

networks.

3. Expanding our Food and Drink Sector

by:

• boosting exports through a joint

Government/industry action plan; and

• promoting innovation through an

industry summit and competition;

4. Delivering Green Growth by:

• Launching a £15m Rural Community

Renewable Energy Fund to help

communities meet the upfront cost of

developing renewables projects; and

• introducing a new initiative to improve skills

in the Forestry sector.

5. Reducing Regulation on Farms

Housing Affordability

0

1

2

3

4

5

6

7

8

9

10

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010

Ra

tio

Ratio of Lower Quartile House Prices to Lower Quartile Earnings, by LA Classification, 1997 to 2010

Major Urban Large Urban Other Urban Significant Rural Rural-50 Rural-80 England

0

5

10

15

20

25

30

35

40

2004-05 2005-06 2006-07 2007-08 2008-09 2009-10 2010-11

Rate

per

10,0

00 P

opula

tion

Permanent Dwellings Started and Completed per 10,000 Population, 2004-05 to 2010-11

Predominantly Urban - Starts Predominantly Urban - Completions Significant Rural - Starts

Significant Rural - Completions Predominantly Rural - Starts Predominantly Rural - Completions

England - Starts England - Completions

House Building

Discussion

Can you identify barriers to the effective

implementation of the Government’s Housing

Strategy in rural areas?

What more could/should Government, Local

Authorities, Housing Providers and others be

doing to address the shortage of affordable

housing in many rural areas?

Excellence in Rural Housing

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complete your evaluation

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member of Federation staff

before you leave.