Rural Communities

James Gray Excerpts

Tuesday 17th April 2012 Westminster Hall

[Mr James Gray (North Wiltshire) (Con)]

My hon. Friend is giving us a most interesting tour d’horizon of problems in rural areas. None the less, he has not touched for the moment on one important area—local government finance. Does he agree that the Government’s forthcoming review of local government finance across England should enable us to change the situation—to correct the anomaly whereby the Government spend about £200 per head in rural areas and about £400 per head in urban areas? Surely that is wrong and the forthcoming review of local government finance and, incidentally, of health finance as well should correct that anomaly.

[Simon Hart]

My hon. Friend is spot-on. He also highlights some of the difficulties that arise from the definitions of rural and urban. In the past, not just the previous Government but probably the Government before them struggled to get a proper definition that enables that anomaly to be ironed out.

We probably all agree, on both sides of the House, that rural people are entrepreneurial, innovative and, above all, patient. They feel that they perform well despite government, rather than because of it. That does not necessarily apply specifically to the current Government. It is just a general feeling on the part of rural people that they have the skill and determination to overcome the obstacles that sometimes the Government inadvertently put in their path.

Rural people are unquestionably the key to economic regeneration and job creation in rural areas. There is the statistic, which some people might say is trite, that if every small or medium-sized enterprise in Wales hired just one person, there would be no unemployment in Wales at all. That is the raw statistic. Of course it is simplistic, but we are not talking about anything that is out of the reach of most people who have aspirations for their business. Such people epitomise the strivers politicians from all quarters always talk about. We refer to them as if they were our friends. They are the people who are there to bring the country out of recession, and that, indeed, is what they are doing. Sometimes, however, I question whether we quite recognise the additional challenges people in rural areas face in running their businesses.

As the shadow Minister will recall, we used to accuse Labour of doing things to, rather than for, the countryside. That is the nub of my opening remarks, from which my questions arise. I hope the Minister will be able to describe to us how he will be part of a re-energisation of rural communities. I hope he will remind rural communities not only of the fact that the Government are on their side, but of how they are on their side.

I hope the Minister will also be able to tell us about the Government’s plans for broadband and mobile phone coverage in not only rural areas, but isolated rural areas. If the Government’s plans for 95% of the country go ahead, as I hope they will, the few people left in the furthest retreats of rural Britain—the other 5%—will, through a fairly obvious logic, be put at a further disadvantage.

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[Hywel Williams]

Briefly, there are GP surgeries in my area that dispense, and that has been a vital part of the service to the population. It does not take two or three hours to travel to a pharmacy, but it is highly inconvenient, especially when bus services are so patchy.

I want to refer to housing, and to mention that we have many unfit houses in Wales. However, the repair and renovation of housing is subject to VAT, and I think that that is wrong. VAT is charged on repair and renovation, but it is not charged in the same way on new build. Plaid Cymru has repeatedly called for a tax cut. It might surprise some hon. Members to hear that a usually left-of-centre party has called for tax cuts, but that is a particularly useful one. It is a matter of equality between people, such as a young couple renovating their first house—adding a kitchen and bathroom to the back of a pre-1919 terraced house, and being charged VAT for it—and someone retiring, say, from the City to the home counties, and building a retirement home, free of VAT.

[Mr Gray]

Does the hon. Gentleman agree that some particularly unfortunate small print in the Budget was about VAT on the restoration of historic churches and houses? Because of that, it will be necessary to do away with the restoration of the church at Castle Combe in my constituency.

[Hywel Williams]

The hon. Gentleman makes a fine point. I had a hugely confusing conversation with the Welsh Government, some time ago, about historic and listed buildings being free of VAT. The conclusion, after 20 minutes of discussion, was agreement that they were free of VAT—but only for new build. Given that we were talking about historic and listed properties, the idea of building them anew seemed somewhat peculiar to me, to say the least.

I will conclude by saying that we have social housing in Wales, as elsewhere. Social housing is extremely valuable, but often it is of the wrong type, and in the wrong place. The ability of social landlords and local authorities to let houses in rural areas has been severely curtailed. In many villages in my area, social housing has been sold. It is not available. The proposed changes in housing benefit are unlikely to help. More people under 35 will be looking for houses in multiple occupation, of which we have few in rural Wales.