Countryside facing cost-of-living ‘rural premium’

The government’s neglect of the rural economy has resulted in a cost-of-living rural premium in the countryside, according to a report by the all-party parliamentary group for Rural Business and the Rural Powerhouse.

The report compiled evidence from more than 25 companies, charities, campaign groups and industry bodies, and found that, in rural communities, spending on everyday items such as fuel is 10-20% higher, despite wages being an average 7.5% lower than in urban areas.

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Issues such as rising energy bills and inadequate power infrastructure have been identified as contributing factors, leaving the 76% of rural off-grid homes at the mercy of uncapped fuel prices. 

The group’s chairman, York Outer MP Julian Sturdy, said: “This report shows without question that those living and working in rural areas have been left at a serious disadvantage. 

“Government needs to now show it is ambitious for the rural economy, and work across departments to develop a serious set of policies that will grow the economy and create good jobs and stronger communities in all parts of the country.”

Solutions

A series of recommendations are outlined in the report to remedy the rural premium, including support for countryside businesses, an affordable housing plan and an extension of the Rural Fuel Duty Relief scheme.

Mark Tufnell, president of the Country Land and Business Association, said: “The depth of hardship we’ve seen across the countryside could have been mitigated.

“Successive governments have turned a blind eye to the vulnerability of the rural economy – while outdated policies have damaged the financial resilience of individuals, families and businesses.

“Unless we stop treating the countryside like an afterthought, people will continue to suffer, and so will our economy.”

The report follows a report from the group last year that found a 19% productivity gap between the rural economy and national average, which was blamed on unaffordable housing, connectivity issues and a lack of ministerial direction.

If resolved, closing the gap would add £43bn to the UK economy, it said.