Shires in the mire

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As MP for South West Norfolk, I have seen at first hand the impact of this recession on the rural economy. It is a subject close to my heart and, following my difficult decision to stand down for family reasons, it is something I shall continue to focus on in the future.

In an economic downturn, the extent and effectiveness of a country’s infrastructure – be it transport, financial services or telecommunications – becomes paramount. Businesses rely on this infrastructure to remain viable.

Sadly, during the economic boom, the rural infrastructure did not receive its fair share of investment. Many of our villages have lost their post office, shop, bank or pub. Jobcentres have closed and public transport services been cut. The recession has only served to exacerbate this trend and it has become clear that those living and working in the countryside are less able to weather the effects of the downturn as a result.

Most recent records show Jobseekers’ Allowance claims in one local authority area of my constituency have increased by 70 per cent in the last year, and in another by over 60 per cent.

These are worrying figures, and behind every new claimant lies a personal tragedy that must not be overlooked; indeed, the Commission for Rural Communities cites ample evidence that in rural areas demand for financial services such as debt advice and affordable credit far outstrips supply.

For those whose jobs have been lost or are under threat, the internet serves as a vital tool to access financial advice and banking services. Smaller businesses, especially ‘cottage industries’ that produce high-quality products for order online, are also dependent. If the rural economy is to fulfil its true potential, it is incumbent on ministers to recognise this through the expansion of business-support programmes and better telecommunication provision.

Ministers have given assurances that the Digital Economy Bill introduced in the Queen’s Speech will deliver a universally available broadband in the UK by 2012. I wait with interest to see whether this promise is fulfilled, although I note that, too often, government guarantees have stopped at the suburbs.

Physical infrastructure is as vital as digital; the use of a car in rural areas is not a luxury but a necessity. Fuel costs have remained consistently high over the last couple of years, and at a time when people are struggling to make ends meet. This has meant a huge burden, not only on the finances of ordinary families, but also on business. The closure of a village post office, for example, can add considerably to a small firm’s petrol costs.

Currently, Norfolk is the only county in England without a dual carriageway to the national trunk road system. This has inhibited the economic growth of our rural enterprises that rely on good transport links to connect them to suppliers and consumers across the UK. This is why I have campaigned so passionately for an upgrade to the A11 west of Thetford. The issue of poor transport infrastructure is not a problem exclusive to Norfolk, and this recession shows that it is something the government must address as soon as public finances permit.

Happily, Britain’s farming sector is weathering the economic storm relatively well. However, the National Farmers’ Union reports that some farmers are experiencing difficulties in borrowing money. Ministers must do all they can to ensure that farmers continue to have access to the capital they desperately need if they are to achieve increased domestic food production targets.

Only two years ago, a report commissioned by the prime minister found that the untapped potential from rural businesses was between an estimated £236bn and £347bn per year. Despite this, a recent report published by the Countryside Alliance found that rural areas receive a significantly lower level of per capita public investment than urban areas, even without taking into account the added disadvantage of rural scarcity.

If the government wants to ensure that our rural economy can continue to grow and make an important contribution, it must put forward the necessary investment. The future of the UK economy as a whole depends on this.