15 Jun 2026
The rural economy was debated by the House of Lords on Thursday 11th June, with a number of Lords contributing and exploring the different issues which impact those working in rural areas, and the potential of the rural economy.
The debate was tabled by Lord Fuller, ex leader of South Norfolk Council.
Lord Fuller raised the huge reduction in funding for rural councils with the abolition of the Rural Services Delivery Grant along with key factors influencing the rural economy like difficulty in delivering affordable housing in rural areas. He stressed that “there is no one in Government who understands or is prepared to stand up and speak for those who can see green outside their windows; just chaotic departments all pulling in different directions”.
Baroness Royall of Blaisdon contributed:
“Rural Britain is not peripheral; it is central to who we are. It contributes hundreds of billions to our economy, and it is home to nearly one in five of our citizens.
If we are to build a resilient and fair rural economy, we must move beyond rhetoric to a genuinely place-based long-term approach that treats rural communities not as recipients of policy but as partners in shaping it—farmers large and small, rural entrepreneurs, and local producers.
The Government have rightly reaffirmed their commitment to rural-proofing, which is vital. It must be integral from the outset, influencing decisions on funding, service delivery and infrastructure. It must recognise that the rural economy includes culture and creativity.”
Lord Cameron of Dillington spoke on some of the underlying infrastructure policy issues which impact the rural economy:
“The biggest problem holding back the rural economy now is the unavailability of labour, and there are two main features of this: housing and transport. The unaffordability and unavailability of rural housing means that the next generation of working families has largely moved to our cities and towns. “
Baroness Coffey stressed the importance of understanding metrics at the right level, and how gathering data at a lower level means that you can see a different picture to wider strategic areas. She also raised the issue of difficulty in finding childcare and the emphasis of the government on school based nurseries and the focus on term time care, which doesn’t always support the needs of hospitality based workers who need the childcare during the school holidays.
Baroness Pitkeathley focused on the key role that village halls play as a vital community anchor providing a wide range of benefits and reducing social isolation.
Baroness Grender mentioned the work of the Rural Services Network:
“As the Rural Services Network has observed, rural communities are asking not for special treatment but for fair recognition—the opportunity for people and businesses in every part of this country to thrive. At present, that opportunity feels increasingly out of reach.”
She concluded:
“The rural economy has immense potential, but it cannot thrive on the current scenario. It requires consistent policy and genuine engagement. Rural Britain does not seek any kind of special favours; it just seeks fairness in terms of the framework within which it can succeed, and I think it is time we provided that.”
The response from the Government, delivered by Lord Katz stressed that:
“We recognise the central role that rural economies play in driving growth, supporting jobs and sustaining communities across the country. Since taking office, we have taken concrete steps to strengthen rural economies and back rural communities through sustained investment, targeted support and a renewed focus on ensuring that rural needs are properly reflected across government policy.”
He recognised that transport and connectivity are key enablers of rural growth along with ‘homes that this country needs’.
He finished with:
“We want a rural economy that is dynamic and growing, communities that are connected and resilient, and people who are able to live, work and prosper wherever they choose. We recognise that there is more to do. Rural challenges, from transport to skills, require sustained focus and long-term solutions, but the direction is clear and I assure your Lordships’ House that the commitment is firm.”
