Rural communities face a post-brexit "perfect storm", LGA warns

Unaffordable homes, poor connectivity, skills gaps and health inequalities are combining to create a “perfect storm” that is threatening the future success and prosperity of rural areas, council leaders reveal today.

The LGA set up a Post-Brexit England Commission to examine the challenges and opportunities faced by non-metropolitan England. Its interim report, published at the LGA’s Annual Conference in Birmingham today, sets out the measures needed to address a deepening divide between rural and urban areas of England.

At a time of historic change for the country, and with government’s attention and resources focused on delivering a successful national Brexit, the crucial issues faced by communities outside of England’s cities include:

• A demographic time bomb with national population projections showing that by 2039 for every 100 working-age residents there will be 53 people aged 65 or older, which will put increasing pressure on health services in rural areas.

• Residents struggling to stay in their local community due to a lack of homes at a price they can afford with the average house price in non-metropolitan England 60 per cent more expensive than in cities outside of London. 

• Businesses grappling with patchy mobile and broadband connectivity that cuts off their access to new markets with a recent survey conducted by Amazon revealing almost 40 per cent rated their internet connection speed as poor

• A growing workforce skills gap across all areas, which if not addressed could put at risk 4 per cent of future economic growth across the country - the equivalent to a loss of £90 billion economic output.

The report argues that these challenges can only be met by passing down greater powers to local areas while national government gets on with delivering a successful Brexit.

This includes giving all councils the ability to borrow to build new affordable homes, devolving funding and control over under-performing national skills and employment schemes to local areas, handing councils legal powers to ensure all new build homes are connected to future-proofed digital infrastructure and plugging the adult social care funding gap which will reach £3.5 billion by 2025.

Cllr Mark Hawthorne, Chairman of the LGA’s People and Places Board, said:

“Rural areas face a perfect storm. It is increasingly difficult for people to buy a home in their local community, mobile and broadband connectivity can be patchy, and people living within rural and deeply rural communities face increasing isolation from health services.

“If Britain is to make the most of a successful future outside of the European Union, it’s essential that our future success is not confined to our cities. Unless the Government can give non-metropolitan England the powers and resources it needs, it will be left behind. 

“This report outlines to government a firm offer from councils in non-metropolitan areas, to play a greater role in building thriving, connected and healthy communities. It represents a once-in-a-generation opportunity for non-metropolitan England to not only improve public services, but deliver a resurgence in rural England’s economy as well.”

NOTES TO EDITORS

1.      ‘Non metropolitan England’ is an expression that captures the large and small towns, the villages and hamlets, the coastal communities and the rural and the deeply rural areas in which 62 per cent of the English population live. The LGA’s Post-Brexit England Commission launched in February 2018 and issued a call for evidence to inform the findings of this interim report. Since then it has engaged a broad coalition of stakeholders with an interest in the future of non-metropolitan England. It will publish a final report next year. 

2.      The interim report set outs the key challenges holding back the success of towns, villages, rural, deeply rural and coastal communities of non-metropolitan England. They include:

• Housing - The scarcity of affordable housing in rural areas is a real problem, with earnings in non-metropolitan England significantly smaller than in urban areas. Across non-metropolitan areas, the average house price is currently 60 per cent more expensive than that of cities outside of London. Recent changes to viability assessments have also diminished the amount of affordable housing available. The Government should let all councils, across the country, borrow to build new homes, and allow councils to adapt local discounts for Right to Buy flexibly.

• Social and Demographic - Following Brexit, a key challenge for non-metropolitan England will be providing the jobs and opportunities to entice working age people to their areas to deliver dynamic economies. With 83 per cent of total population growth occurring in cities, rural areas face real challenges. As a first step towards tackling adult social care, government must urgently tackle the funding gap the sector faces.

• Infrastructure - In rural areas across England, the length of time it takes for people to access employment hubs via public transport is almost double the length of time it takes in urban areas. Local roads funding lags significantly behind the funding provided for national trunk roads and motorways. The Government needs to address the nation’s local roads repair backlog, which will take more than a decade and £9 billion to clear. Today’s report calls for the development of a local industrial strategy to be put in place for each area and for more infrastructure to be developed.

• Digital - Only 60 per cent of rural premises can receive an outdoor 4G signal from all operators, which falls to a small 19 per cent for indoor coverage. Councils want to see statutory backing to ensure all new-build buildings are connected to local digital infrastructure, and are future-proofed. They also want to see Ofcom ensure mobile coverage data information is accurate and reflects the consumer experience.

• Skills - The growing skills gap across the country is increasingly stark. By 2024, there will be a shortage of 4.2 million skilled people in the UK to meet the demand for high skilled jobs and a surplus of more than 6 million people with low skills. Failure to address this challenge puts at risk up to 4 per cent of future economic growth – a loss of £90 billion economic output, with the average worker £1,176 a year worse off.

3.      At the Annual Conference, the LGA is publishing a series of papers aimed at helping build the case for long-term, sustained investment in local government, ahead of next year’s Spending Review. The papers – covering housing, planning and homelessness, funding, improving schools, Brexit, the future of non-metropolitan England, and adult social care – also set out the positive outcomes for the country of investing in local government. They can be found here.