Rural England risks losing out under devolution plans
© Tim Scrivener Rural communities risk losing out on funding and investment under prime minister Andy Burnham’s devolution plans, campaigners have warned ahead of next week’s Budget.
Independent rural policy group Equal Ground says proposed changes to regional funding could widen inequalities between town and country, with authorities under no obligation to consider rural needs in their growth plans.
See also: Rural poverty in Britain: The crisis hiding in plain sight
Under the planned reforms, regional authorities would retain more locally generated business rates from 2027, followed by a share of income tax revenues from 2028.
However, areas with smaller populations and fewer businesses have less capacity to raise revenue, potentially leaving rural communities at a disadvantage.
The warning comes in Equal Ground’s Rural Interests in the Devolution Settlement report, ahead of the Budget on 28 October, when the government is expected to publish its devolution white paper and funding roadmap.
Co-author Richard Gueterbock said: “The government wants to see good growth in every postcode.
“Fairer funding for the countryside need not cost the Treasury more overall; it simply gives rural communities a fair share, and it needs to be in the Treasury’s plans on 28 October.”
Rural safeguards
Equal Ground is calling for four protections, which it says would not increase devolution costs or require new elections or another layer of government:
- Mandatory rural proofing of strategic plans, with reporting on benefits to rural communities
- Rural commissioners within strategic authorities to provide scrutiny and representation
- Fairer funding arrangements recognising remoteness, sparsity and lower tax-raising capacity
- Equivalent powers and protections for rural areas outside mayoral regions.
Hidden rural deprivation
Rural England covers 85% of the country, supports 9.7 million people and contributes about £259bn annually to the economy.
Yet the report warns that deprivation is often masked by regional averages, risking rural communities being overlooked when investment decisions are made.
Ageing electricity networks, limited grid capacity and costly connections are already restricting farm diversification and renewable energy projects.
Almost one-third of homes in majority-rural constituencies are off the gas grid, while fuel-poor rural households face an average £824 shortfall, compared with £311 in urban areas.
Poor transport and digital connectivity further disadvantage rural businesses, while infrastructure crossing regional boundaries risks falling between funding authorities.
Report co-author Angie Bywater said: “Rural England provides the nation’s food and a significant share of its renewable energy, yet many rural households face some of the highest energy costs in the country and a grid with limited capacity.
“Devolution should help fix that, not lock it in.”