Labour told to put farming at heart of economic reset

Closing rural England’s productivity gap could generate an estimated £22.5 billion in additional economic output, according to a report urging Labour to put farming and countryside growth at the centre of its political reset.

The Labour Rural Research Group, working with the Country Land and Business Association, says rural communities are too often treated as peripheral despite their role in food security, energy, housing, nature recovery and economic growth.

Its report, The Future of the Rural Economy, argues that rural Britain is not economically weak but is being constrained by longstanding structural barriers.

New polling commissioned for the report found strong public support for farming and the rural economy.

Some 87% of respondents said maintaining a strong domestic farming industry was important to the UK’s future.

A further 77% said they would support increased investment in British farming if it helped improve national food security.

Nearly two-thirds, 63%, believed Labour would be right to give rural communities and the rural economy greater priority than in recent years. Just 5% considered it the wrong decision.

Support crossed party lines, including 71% of Labour voters, 70% of Conservatives, 74% of Liberal Democrats and 66% of Reform voters.

The report examines rural Britain broadly, although its headline economic figures relate specifically to rural England.

Rural England generated £259 billion in Gross Value Added during 2023, but its share of national output has fallen from around 19% in 2001 to approximately 12% today.

Productivity in majority-rural local authorities is estimated to be about 8% below the England average.

The report calculates that eliminating this difference could produce an additional £22.5 billion in economic output.

It argues that the gap does not reflect a shortage of talent, ambition or enterprise among rural communities.

Instead, businesses and residents are being held back by weaker infrastructure, poor transport, housing shortages, recruitment pressures, planning delays and limited access to finance and public services.

These obstacles can prevent rural firms from expanding and make it harder for employers to find workers.

They can also force younger residents and key workers to leave because they cannot find suitable housing, transport or services locally.

The report calls for a cross-government rural economic strategy to ensure countryside communities are considered across national policymaking.

It also recommends stronger rural proofing of economic policies, alongside targeted investment in transport, digital connectivity, infrastructure and housing.

Further proposals include more support for rural businesses seeking to expand and a dedicated workforce strategy to address skills shortages and recruitment difficulties.

The authors also want clearer policies covering land use, domestic food security and environmental markets.

CLA president Gavin Lane said public backing for rural Britain was clear, but warned that farms and countryside businesses remained under intense pressure.

“The public are on the side of rural Britain, and they expect the next government to be too,” he said.

Mr Lane argued that the recommendations offered policymakers an opportunity to support jobs and growth in communities that can experience high levels of deprivation.

“There is no more time to waste on endless consultations and talking-shop committees,” he added.

James Naish, vice-chair of the Labour Rural Research Group and lead author of the report, said national growth plans would succeed only if their benefits reached communities across the country.

“Labour’s central mission is economic growth, but this growth must be felt in every part of the country,” he said.

“Rural communities shouldn’t be seen as peripheral to national renewal – they are places where growth can be generated, productivity unlocked and national priorities delivered, from food security, nature restoration and flood mitigation to new housing and energy generation.”

Mr Naish added: “Place-based policy is essential if we want to deliver for the UK as a whole.”

Asked about Labour’s rural policies under a potential Andy Burnham premiership, 27% of respondents said they were confident the party would strengthen its offer.

By comparison, 40% were not confident and 34% did not know, with the figures affected by rounding.

The polling was conducted by Opinium between 1 and 3 July 2026 among 2,050 nationally and politically representative respondents.

The report also draws on official statistics, written submissions and two focus groups involving residents from rural communities across England, Scotland and Wales.

Its public inquiry received evidence from businesses, councils, academics, charities, community organisations and industry bodies.

The Labour Rural Research Group brings together more than 40 rural and semi-rural Labour MPs, accounting for over 10% of the Parliamentary Labour Party.

It argues that putting farming and rural communities at the centre of economic policy would help strengthen food security, unlock business investment and ensure national growth is felt beyond Britain’s cities.