Rural England contributes £259bn but is still held back, Defra warns

Rural communities must no longer be treated as an afterthought, the government has said as it pledged to embed countryside needs across Whitehall and unlock an economy worth more than £259 billion a year.

Defra’s Future of Rural England report, published on 16 July, calls for rural impacts to be considered from the beginning of policy and investment decisions rather than assessed only after plans have been developed.

Previous governments have been criticised for treating rural proofing as an “end of pipe” exercise, reviewing whether policies meet the needs of countryside communities after decisions have already been made.

Ministers now want every government department to consider whether policies can be delivered fairly and effectively in rural areas at each stage of the policymaking process.

The report acknowledges that although rural England makes a major contribution to the national economy, productivity continues to lag behind urban areas.

Limited access to finance, skills shortages, inadequate housing, weak transport links and patchy digital connectivity were identified as some of the biggest barriers to growth.

For farmers and other land-based businesses, these pressures can affect recruitment, diversification, access to services and the ability to invest in new technology.

Ageing energy infrastructure and limited grid capacity can also restrict renewable energy and diversification projects, while a shortage of affordable homes makes it harder for rural employers to attract and retain workers.

The Country Land and Business Association (CLA) welcomed the government’s commitment to embedding rural proofing but warned that the report must result in practical changes.

CLA deputy president Joe Evans said: “The CLA welcomes today’s Future of Rural England report and its focus on embedding rural proofing across government. Only through a joined-up approach, with departments working together, can the full potential of the rural economy be unlocked.”

The report was developed following the creation of a Rural Taskforce by Defra in April 2025.

The taskforce worked with external organisations and departments across Whitehall to examine how government could support rural businesses, tackle disadvantage and unlock further economic opportunities.

Its findings were informed by the Statistical Digest of Rural England and six workshops focusing on the main challenges facing countryside communities.

Housing was highlighted as a particular concern, with the supply of affordable homes continuing to fall short of rural demand.

The government said delivery would be supported through changes to the National Planning Policy Framework and the £39 billion Social and Affordable Homes Programme.

However, rural groups are likely to judge the policy on whether it results in homes being built in the communities where workers, families and local businesses need them.

Transport and digital access were also described as essential to rural growth and access to education, employment and public services.

Although the report points to progress through Project Gigabit and the Shared Rural Network, it acknowledges that broadband and mobile coverage gaps remain.

Poor connectivity can make it harder for farmers and rural businesses to complete online administration, adopt precision technology, reach customers and access increasingly digital public services.

Limited public transport can also restrict access to training and employment, particularly for young people and residents without private vehicles.

The report found that rural pupils often achieve strong GCSE results but are less likely to progress into higher education.

Skills shortages also persist among small and medium-sized businesses and in industries with the potential to expand.

Health inequalities were another area of concern, with rural residents facing longer journeys to services and increasing demand for mental health support.

Digital healthcare could help improve access, but the report said this would depend on reliable connectivity and sufficient digital skills.

Rural crime, including equipment theft and wildlife offences, remains under-reported and poorly understood.

The government has called for stronger data and more co-ordinated policing strategies, amid continued concern among farmers about machinery theft and the cost of protecting isolated businesses.

More than 50 government initiatives and programmes are identified in the report as helping to address rural challenges.

These include the Warm Homes Plan, Boiler Upgrade Scheme and Local Power Plan, alongside measures intended to strengthen bus services and improve digital connectivity.

The government has also pledged to ensure rural priorities are reflected in Local Growth Plans and Spatial Development Strategies as devolution is expanded across England.

It plans to develop new indicators to measure rural sustainability, service delivery and economic resilience, while encouraging closer working between central government, councils, businesses and voluntary organisations.

Initiatives such as the Great British Energy Community Fund could also be expanded to help rural communities benefit financially from hosting major infrastructure.

Mr Evans said the government’s central challenge would be converting the report’s recommendations into visible improvements.

“The challenge now is turning these recommendations into action. That means delivering affordable rural housing, improving digital connectivity and transforming our approach to planning so that it becomes an enabler, as opposed to a blocker.”

He also warned that rural priorities must not be diluted as more decisions are transferred to regional and local authorities.

“As devolution is rolled out, government must also ensure rural communities are not left behind. Getting this right is fundamental to closing the productivity gap, unlocking billions of pounds of economic growth and creating a thriving countryside.”

Ministers will now be judged on whether rural proofing produces tangible changes to planning, housing, connectivity, transport and investment decisions, rather than becoming another Whitehall commitment with little impact on the ground.