Commons Sense

House of Commons · Ministers' Questions

Economic Growth in Rural Areas

Tuesday 3 December 2024 · 4 questions

Summarised by AI from the official record, so it can contain mistakes.

Read the full transcript on Parliament.uk

At a glance

Answered 2 Partly answered 2 Not answered 0

Key points

  • Government investing 5 billion in broadband connectivity to support rural economies
  • Chief Secretary to the Treasury to set out fiscal measures in due course
  • Government committing 5 billion to the farming budget over the next two years

Topics (select to filter)

Questions & Answers

Q1 Helen Morgan Lib Dem North Shropshire
Economy Agriculture & Rural Affairs
Context

The question arises from the need to stimulate economic activity in rural regions, which face unique challenges compared to urban centres. The MP wants to know what steps are being taken to address these issues specifically.

Question

What fiscal steps she is taking to increase economic growth in rural areas?

Answer from James Murray

A prosperous rural economy will be underpinned by improvements in rural connectivity and productivity, the availability of affordable energy, access to public services and a thriving farming sector. To that end, the Government are investing £5 billion in broadband connectivity, which will support growth in rural areas across the UK. In addition, we are spending £5 billion for the farming budget in England over the next two years, including the largest amount to be directed at sustainable food production and nature's recovery in our country's history.

Answered
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Q2 Jamie Stone Lib Dem Caithness, Sutherland and Easter Ross
Economy Scotland Environment
Context

The MP is concerned about depopulation trends historically affecting his constituency. He highlights recent developments such as a freeport and space launch opportunities that could benefit from fiscal assistance.

Question

For generations the grim spectre of highland depopulation haunted the area I come from. I can remember my own father saying, before North sea oil came along, that I would have to go south; to go away. Today we have the Inverness and Cromarty Firth green freeport, and we have the prospect of a space launch in Sutherland. May I ask the Government to consider fiscal means whereby these projects can be assisted? I warmly invite a Treasury Minister to come north to my constituency to see what we are doing and what we have on offer.

Answer from James Murray

The Chief Secretary to the Treasury will set out any fiscal measures in due course. I am not sure whether I will get away with committing him to a visit to the hon. Gentleman's constituency, but I am sure that many of us would like to visit it. In fact, I shall be in Scotland in the next few days, but as it is for a Labour party fundraiser, the hon. Gentleman may not want to join me.

Partly answered

Not addressed: fiscal measures and specific project support

How: Will Set Out Any Fiscal Measures In Due Course, I Am Not Sure Whether I Will Get Away With Committing Him To A Visit

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Q3 Helen Morgan Lib Dem North Shropshire
Business & Trade
Context

The MP is concerned about the impact of the current business rates system on independent businesses, particularly in rural areas. She highlights the need for reform that encourages investment and levels the playing field between high street retailers and online giants.

Question

Rural North Shropshire is home to some great independent businesses that we are looking forward to celebrating on Small Business Saturday this week, but they are held back by the business rates system, which benefits big online retailers and holds back investment not only on the high street but in the countryside. Will the Minister consider a much more radical reform of business rates which takes account of land values, encourages businesses to invest and puts high street retailers on a level playing field with online giants?

Answer from James Murray

Until the hon. Lady's last sentence, I thought she was declaring support for our business rates plans, because we are setting out to level the playing field for high street businesses and the online giants. We are doing that by way of a permanent tax cut for retail, hospitality and leisure businesses on the high street, which is paid for by the higher multiplier for those with a rateable value of £500,000 or more—a category that includes the warehouses used by online companies. I look forward to the hon. Lady perhaps contributing towards our “Transforming Business Rates” paper, which sets out our wider ambitions for reform.

Partly answered

Not addressed: radical reform of business rates system considering land values and investment

How: We Are Doing That By Way Of A Permanent Tax Cut For Retail, Look Forward To The Hon. Lady Perhaps Contributing Towards Our “Transforming Business Rates” Paper

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Q4 Jo White Lab Bassetlaw
Agriculture & Rural Affairs
Context

The MP is concerned about the vulnerability of British farmers due to poor trade agreements, flooding, energy costs and infrastructure. She asks for assurance that this government will protect them from these challenges.

Question

The last Government failed to stand up for British farmers in trade agreements and left them vulnerable to flooding, rollercoaster energy costs and poor infrastructure. Can the Minister confirm that this Government will protect British farmers where the last Government failed?

Answer from James Murray

My hon. Friend is absolutely right to point out the failures of the previous Government, and to point out that this Government remain steadfast in our commitment to farmers across the country. That is exactly why we have committed £5 billion to the farming budget over the next two years, including the largest ever budget for sustainable food production in our history.

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