After the spending review

So the Comprehensive Spending Review has finally ‘come out’ – and we can look forward to – well what exactly?  We know some things, no more Government Office from April 2011 (and so no secretariat support for the WMRAF); no more RDAs (we knew that already); local authorities facing 28% cuts over the next 4 years; 500,000 public sector jobs disappearing.  The impacts of other headline decisions are less clear.  How will the cuts in higher and further education affect young people in rural areas?  What exactly will be the impact of arts funding cuts of 30% on the cultural life of rural communities?  Will there be jobs for the public employees made redundant in rural areas, especially as many rural economies are  heavily dependent on the public sector for employment?  Will the voluntary and community sector (or Civil Society as we must call it now) have the capacity or resources to deal with the new demands that are being made of it – to fill the gap between individuals and the state?  These are as yet imponderables and only time will reveal the full impacts of the handbrake turn that the Coalition Government is attempting.  But for certain we are all going to be shaken up as the super tanker attempts this racing car manoeuvre, and undoubtedly some will be badly injured.

What happened at the Ministerial meeting on 21.9.10

This was my first opportunity to attend the Rural Affairs Chairs’ meeting with the Minister, it was also the first meeting for Richard Benyon MP who was in a listening mode. However, he was keen to ensure that RAFs were aware that the coallition government recognises the rural dimension in the delivery of economics, environment and social, for example rural broadband is as much about social inclusion as economic; he hoped this commitment was reflected in the experience of the Rural Minister team. The Minister was keen to achieve the key objectives of housing, transport, broadband, community and fuel by working with organisations. He was keen to express that the end of the CRC was not the end of community involvement.

 In order to take the Rural agenda forward, the Minister was planning a series of bi lateral meetings with other Ministers to prioritise rural areas, statements to reflect this would then be issued. Chairs were keen to express that ‘Rural’ meant more than farming and the rural economy had a lot to offer in terms of driving the national economy. It was clear from the Minister’s response that the two proposed white papers on Natural Environment and Water will explore the use of rural resource and its contribution in terms of environment and economics. Also much can be achieved through local action and voluntary agreement.  It is absolutely clear that the Big Society is a theme that runs throughout the current Government and they are keen to support and facilitate Local Action.

 With this in mind, we turned to the four papers developed by the Chairs on Affordable Housing, Broadband, Transport and community. The Minister was keen to hear of schemes where local action and private funding had delivered an outcome for example, cross subsidy of market housing to deliver affordable housing and a local community digging its own trenches to put in the cables for high speed broadband.  There was positive discussion around rural communities being able to take on the Big Society function but a need for Parish Plans to take greater importance with local authorities and how to energise rural communities through reduced bureaucracy of grants and regulation.

 The Minister and Defra officials engaged positively with the discussion and took on board the comments for the full 2hrs of the meeting.

 After the meeting, a verbal update was given on the OCED report expected to be published at the end of November. RAFs were praised for having a strong ‘bottom up’ approach but work need to be done to minimize the ‘top down’ approach that also existed. The regional element was skipped over; value given to rural proofing and mainstream but again needs to be strengthened. There was praise for the ability to share best practice.  Interesting aside was that the OCED did not recognise that in England we had any predominately rural areas we seem to be just a suburb!! A free copy will be sent to chairs.

 The afternoon was the business end for Chairs or their representatives.  It was felt that there had been better engagement with the Ministers and officials this time and the Chairs were keen to express to the one remaining Defra official, the value that RAFs could deliver but to do this it is clear that:

 RAFs need to engage in the Big Society agenda and show how they connect and work at local level rather than our previous regional function.

 There was no clear steer whether the RAFs will continue, the Ministers are keen to rationalise the number of forums in any area, for example the food and farming strategy group meet as well as RAFs in most areas.  Ideally the Defra representative felt there was a need for a forum of 8 to 12 members to openly discuss issues but how that was developed was up for grabs potentially.

 There is no clear indication of funds post March 2011; not surprising with the Spending Review to report on 20th Oct. But given the discussion, if RAFs are to survive, I would suspect that we will need to pull in funding from a wider constituent group and show we connect to grass routes.

Adding Value – what was said at the CAG

The Forum is working hard, with partners, to look in detail at a number of subjects and assess what needs to be done, how much of that is being done by someone else already, and hence what is left for the Forum to do. We all feel that there is no point duplicating what others are doing; we need to fill in the gaps (where we can) and, in the jargon, add value to the process.

For example, we have a task and finish group on skills that is in the process of taking stock, identifying what might fall through the cracks, and deciding how we can make a difference. One of things that we are keen to ensure is that careers guidance in schools is well-informed about the opportunities in the land-based sectors, which might otherwise be overlooked.

One of the other priority subjects for the Forum is rural affordable housing. We know that many people are finding it harder than ever to buy, because the price of even a small home is many times their income. The mortgage deals on offer do not meet their needs. The public spending cuts threaten to bring down the number of homes built, and the removal of targets (and the associated monitoring) could lessen the pressure on local authorities to meet local needs. The Forum will need to decide whether to reconvene the group after the Comprehensive Spending Review in October, to look at what more should be done.

Similar exercises are taking place in relation to rural broadband and environment and climate change. On broadband, we are looking at two strands: the pilot schemes already getting underway in the region and the scope for use of compulsion to fill in any gaps in provision. I must say that some of the wireless broadband projects – particularly the ‘triangle’ pilot centred on Leominster, Ludlow and Tenbury, and the one making use of church steeples – are looking very promising. Some lucky folk will doubtless be able to choose between joining the triangle gang and the steeple people.

The Chair’s Advisory Group, which met this week, discussed all these subjects along with the plans for local enterprise partnerships being worked up throughout the West Midlands. The Forum has written to the Rural Affairs Minister, Richard Benyon, and his counterparts in CLG and BIS, arguing the need for rural proofing of the LEP proposals; our letter talks about the need for fair funding, for a good understanding of the rural economy, and for the right representation on LEP boards.

The Forum is also exercised about changes to the arrangements for the national Legal Aid service. We heard recently that the firm covering south Shropshire is based in Shrewsbury, and so someone living in say Bishops Castle might face a long and difficult journey to get the legal advice to which they entitled. We are seeking assurances about the way that people in remote rural areas, especially those reliant on public transport, will be able to gain access to the service in the future. I have visions of the mobile library being overtaken by the mobile Legal Aid service. I wonder how many solicitors have the right driving licence for a mini-bus.

Meanwhile the obliteration of anything regional continues. During a meeting with the Environment Agency earlier this week I learned that any job title featuring the words ‘regional’ or ‘strategic’ has had to be changed. Fortunately for the Regional Strategy Manager, she goes on maternity leave at the end of the month, which is as good a way as any to avoid the problem.

Regards

David

We need to be constructive

How the world has changed? There is much reference to a new order and different politics as a result of the General Election. This is certainly being felt at a regional level, as announcement after announcement breaks apart the regional governance of the last decade.

Advantage West Midlands will be gone by March 2012, Government Office ‘in principle’ to go.  We need to know how bodies such as Natural England, Environment Agency and Forestry Commission will operate in the future. What will be the effects of the ongoing spending review?

The momentum is certainly gathering a pace to deliver the Coalition’s localism agenda, but will it truly be local or will it be a national agenda with local delivery? It really is far too early to say.

One area that rural business needs to focus on is the proposed Local Enterprise Partnerships (LEPS).  LEPs will be joint local/business bodies brought forward by local authorities to promote local economic development and recovery. 

It is uncertain at this time how many LEPS will emerge from the bonfire of existing quangoes, or what powers they will have, but the Rural Affairs forum need to ensure that:

• rural areas do not fall between the gaps and no part of the region is left uncovered by a LEP;
• rural businesses are properly represented on the governing bodies of LEPs;
• the criteria used for funding allocation to LEPs must take rural economic circumstances into account;
• a smooth transition of existing rural funding streams from regional bodies takes place especially with regards to the RDPE.

Whilst local authorities are leading the way with the LEPs’ remit and areas, it will be important for business to engage with constructive ideas to deliver positive economic recovery in a period when public expenditure is being massively reduced. However, constructive and responsible engagement has to be matched by consistency on the part of government.

In the meantime, there are public expenditure cuts to be faced and wherever the knife falls will not be any easier to handle for the rural sector than any other. It must make sense to protect environmental schemes and the ‘public goods’ they supply, animal health and bTB, flood defence, research and renewable energy production. No doubt everyone who benefits will want their funding saved. But what would you cut? The opportunity to tell Defra has just started with the launch of the new Regulation Task Force which is asking for people and business to come forward with areas of over regulation and excessive red tape.

Caroline Bedell

CLA Regional Director – West Midlands

Opportunities come from change

Press continues to carry news of more Government Agencies and quangos facing abolition and cuts.  We are all thinking ‘What’s next?’ 

 Collectively, we need to turn this round and consider ‘how do we make this work for rural areas?’   It’s difficult as the context will continue to change for some months and will dominate discussions.  This is the opportunity to seed ideas to tackle key rural issues and ensure good practice is carried forward.

 As the dust settles on changes to Government structures evidence based policy making to identify and tackle local issues will come back to the fore.  Evidence will shape future Government priorities and funding streams.  It becomes even more important than before with national budget constraints. 

 West Midlands has a strong rural evidence base accessible to all through West Midlands Regional Observatory and Advantage West Midlands.  We should continue to use it to demonstrate our understanding of key rural issues to Government and make the case for future interventions.

 The Rural Evidence Base remains up to date with recent additions on rural broadband infrastructure and rural disadvantage. Let’s use our evidence to make the case for rural areas.

 Claire Robinson

“The context in which the Rural Affairs Forum is working is changing rapidly and radically”

This week has seen the announcement of the end of the Regional Development Agencies and the Commission for Rural Communities (CRC). There is no doubt that the context in which the Rural Affairs Forum is working is changing rapidly and radically.  As the RDA functions are passed to the new Local Enterprise Partnerships, the focus of activity will shift to the sub-regional level.  Regional level roles and responsibilities will certainly diminish.  At the same time at a national level, who will be speaking up for rural communities?  There will be an enhanced policy unit within Defra, to pick up some of the work of the CRC, which may welcome the presence of RAFs as a conduit to rural practitioners.  Or not!  But whatever happens there will still be rural communities, with specific issues and needs.  Somehow, somewhere their voice will be heard.

 As the old revolutionary Maoist slogan says “world in great disorder – excellent situation”! 

 Alison McLean

Coming out of rural recession…

At the Forum’s meeting this week we heard about the impact of the recession in rural areas. One of the less dispiriting features of the recession has been the way that private sector jobs have – by and large – held up. There has been far less job-shedding in rural areas than in urban ones. This is thanks in part to the imaginative approach of employers and the flexibility of their workforces. Stimulus packages seem to have helped as well. Considering that the economy has been in recession for six quarters, many of us would have expected things to have got much worse than they have.

Some relatively rural parts of the region – such as the areas around Cannock and Lichfield and parts of north Warwickshire – have fared worse than other rural areas. Youth unemployment is a particular concern in the Cannock area and the Wyre Forest district of Worcestershire. Those without formal qualifications have also struggled to find work.

There is also a gender issue: a good many of the manufacturing and construction jobs lost in the first part of the recession were held by male workers. Since March 2009 there have been more jobs lost from the services and public sectors, in which jobs are much more likely to be held by women.

But are we out of the woods? Notified redundancies peaked in the region in December 2008, which suggests we are moving in the right direction. But in the Marches sub-region (the mainly rural west close to the border with Wales), the number of redundancies being notified fell until October 2009 and then started rising again.

Those parts of the region that are heavily reliant on public sector jobs are more vulnerable than most. The effects of the cuts are already being experienced by local authorities and other orgnisations, and we know there is more to come. The rural districts that rely heavily on the public sector for jobs include Stafford, Bromsgrove, Worcester and the county of Shropshire. In total, public sector bodies spend around four billion pounds in Shropshire every year; if the cuts amounted to a quarter, the mainly rural economy of the county would lose £1 billion a year. This is bound to affect the private sector, because some businesses will be trying to sell to individuals who have less money coming into their homes, and because a lot of businesses rely on public sector bodies for at least some of their contracts.

So does all this mean that we are heading for the feared ‘double-dip recession’? Kate Barker of Bank of England monetary policy committee fame says this is unlikely, though she does not rule out another quarter of negative growth. She thinks that the recovery will be fragile and bumpy.

Chairs’ Meeting – How we can work better

Unsurprisingly at the national meeting of Rural Affairs Chairs on the 20th May no Minister was present so we took the opportunity of reviewing how we work together and also finding out from DEFRA what they required from us. There was also a considerable amount of guess work as to what the new regime would do about rural forums and our future.

 Tony Williamson (DEFRA) opened up with a short summary of the DEFRA review of RAFs to date. On the whole the review was favourable and forums only needed small tweaks here and there to make them really effective. The full report should be with the new Minister in about six weeks and would be finalised a.s.a.p. after that.

 The downside of the discussion was that no-one knows what the situation will be re funding in these times when every penny saved will count.

 I was impressed by the apparent commitment by DEFRA staff to the continuance of the forums, but the message is wait and see.

 In the mean time we need to ensure that as forums we are working as closely as possible together and to this end we now have a central secretariat and made the decision that all our secretaries should meet together at least once a year. We also decided that all communication should be through the central secretariat in order to avoid duplication and so that we could better monitor replies to queries etc…

 The Chairs are now working on a short paper on our offer to DEFRA and the Minister. There is also a welcome letter to the new Minister winging its way even as we write. We hope to have our first meet with him in September.

 In my opinion all the forums seem to be working better now with clearer objectives and methods of achieving them.

 The Conservative Green Paper said they would set up rural forums if so they already have them up and ready to go all we need is a clear signal from Ministers of what they would wish us to deliver to them.

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