Report reveals increasing
inequality in rural areas - State of the countryside 2008
COMMISSION FOR RURAL
COMMUNITIES News Release (CRC 9/08) issued by The Government News
Network on 16 July 2008
The Commission for
Rural Communities (CRC) today (Wednesday, July 16, 2008) published
the State of the countryside 2008 report, the tenth report in the
series providing the definitive picture of rural England. Whilst
there are many advantages to living and working in rural England,
there remain some significant challenges. The quality of life may
often be better in rural areas but this is not the case everywhere
and for everyone. The latest report highlights a rise in
households living in poverty in rural England and a growing
inequality between remote rural areas and other parts of the countryside.
Dr. Stuart Burgess, Chairman of the CRC said "The series of
State of the countryside reports provides a unique opportunity to
reflect on the changes taking place in rural England, look forward
to what the future might hold for rural communities, and to
reflect on what aspects have remained important since the report
was first published in 1999.
Issues and trends that have remained important
"The
decline in services in rural areas continues to concern rural
communities. Each year we have found there are fewer outlets for
many services and poorer accessibility to services for people
without cars. Use of the internet has risen markedly in rural
areas (from 44% in 2002 to 62% in 2007), and rural internet users
are more likely to use it for accessing services, but the
availability of high-speed broadband remains low in sparsely
populated areas.
"Meeting affordable housing needs in rural areas remains a
dominant challenge, with demand being heightened because of people
seeking to relocate to the countryside. Housing affordability
continues to be worse in rural areas - in 2007 the average rural
house price was £257,600 compared with £212,823 in urban areas,
with rural house prices 6.8 times annual household income,
compared to 5.8 times in urban areas. In some more sparsely
populated rural areas, however, house prices can be up to 9.7
times annual household income. The number of second homes in rural
areas is estimated at 94,000.
"Rural economies continue to show inherent strengths -
higher rate of business start-ups than urban areas and overall
growth in the number of businesses compared to a net decline in
the urban business base. However, wages for people working in
rural areas continue to be low and for many work is not a secure
route out of poverty. Between 1998 and 2007 rural economies have
seen an increase of 291,000 in those working in knowledge-based
industries, a growth of 46% compared with 21% in urban areas. The
series of reports has highlighted a continuing decline in the
number of people working in agriculture.
"The character of large parts of England's countryside
is changing as a result of built development; demand for new
development is significantly higher (per household) in rural areas
than urban areas and the countryside has seen a greater number of
new houses than in the urban fringe in recent years. Consequently,
concerns about the quality of the countryside have remained
important although environmental regulation has stabilised and in
some case improved the quality of water, air and landscape in many
areas. Rural areas have a higher carbon production rate per person
than urban areas, principally higher emissions from heating of
homes and car use.
Inequality within rural areas
"Over the last year there
has been a rise in rural households living in poverty, and this
year we have been able to use the official 'Households Below
Average Income' data for rural areas to show this increase.
These data show that between 2004/05 and 2006/07 poverty is
increasing faster in rural households than urban households - by
3% compared with 1%. Around 1 in 5 rural households now live below
the poverty line and there are also indications of increasing
inequality within rural areas themselves, with a widening gap
between less and more sparsely populated rural areas. In the
poorest fifth of rural households 50% of weekly income goes on
essentials (food, housing, energy and transport) compared with 39%
in the highest income rural households and 47% in the poorest
urban households.
"People in rural areas generally enjoy healthier lifestyles
and a better quality of life, generally the incidence of crime is
lower. Most households moving into rural England are now families
with people aged from about 44 to 64 with young children. This
contrasts with a more general pattern of slowing internal (within
UK) migration over the last two years and a slowing in overseas
migration in the last year, following a sharp increase from 2004.
"There have been distinct changes in farming over the last
ten years with recently a sharp fall in un-cropped land that was
previously set aside and fallow, this is mainly due to increase in
crop prices and the removal of the requirement for farmers to
set-aside land under the European Union's Common Agricultural
Policy. The value of agricultural land rose sharply during 2007,
mainly due to increases in the prices of agricultural commodities
and to high demand for land for 'lifestyle' rural
properties. There are signs of a renewed sense of optimism amongst
farmers but these trends could increase pressures on environmental
quality once more.
The past as a clue to the future
"New issues are coming
to the fore that were not considered significant for rural areas
in the past. These largely flow from global and long-term
challenges, including climate change or developments in the global
economy such as growing consumption in developed countries.
Changing use and the demand for land, such as the possibility of
diverting land from food to energy production, are occurring due
to such trends. With changes in the world economy and
international security, food security is likely to, once again,
drive policy. These factors, and rising food and fuel prices, all
imply challenges for policy makers to make sure that the changes
that will be needed provide benefits to all communities, including
those in rural areas.
"The State of the countryside reports have continued to
pinpoint some critical issues for Government and whilst rural
England has some major strengths and much to celebrate,
significant ongoing challenges remain. The Commission for Rural
Communities will continue to fulfil its role in advising
Government and others so that the needs and circumstances of rural
communities are represented more fully and rural people are not
disadvantaged by where they live."
Notes for editors:
1. The State of the countryside report provides a unique analysis
of how rural England is changing. The report has three central
chapters: Living in the countryside - social issues; Economic
wellbeing - economic issues; and Land and environment -
environmental issues. The report includes a number of new findings
with 133 charts, maps and tables, and reflects on ten years of
State of the countryside reporting. Further information about
State of the countryside 2008 can be found at:
http://www.ruralcommunities.gov.uk//projects/stateofthecountryside2008/overview
2. The CRC was established in April 2005 and became an
independent body on 1 October 2006, following the enactment of the
Natural Environment and Rural Communities Act, 2006. The role of
the CRC is to provide well-informed, independent advice to
Government and ensure that policies reflect the real needs and
circumstances of people living and working in rural England. We
give particular focus to tackling disadvantage and economic under-performance.
We have three key functions:
* advocate: the voice for rural
people, business and communities;
* expert advisor: providing
evidence-based, objective advice to Government and others;
and
* independent watchdog: monitoring and reporting on the
delivery of policies nationally, regionally and locally.
Further information about the CRC and its work can be found at:
http://www.ruralcommunities.gov.uk
State of the countryside 2008- key facts
Living in the countryside
1. It is estimated that 9.6 million
people were resident in rural settlements in England in 2005; this
equates to 19.1% of England's population.
2. The population of rural England continues to rise at a faster
rate than in the country as a whole. Most of this increase is due
to internal migration by people moving out of cities rather than
different birth and death rates.
3. Most households moving into rural England are families with
young children and people aged from about 44 to 64, while most
moving out are people aged 15 to 29.
4. The longer distance internal migration moves tend to be
towards the South West and to areas such as Norfolk and
Lincolnshire from London and major cities.
5. Migration from overseas has increased dramatically for rural
areas over the last four years, but numbers are still below those
for cities. The bulk of migrants are from countries that have
recently joined the European Union, although there are now more
overseas migrants from the Indian sub continent and the Far East
in many rural areas.
6. For most types of service the number of outlets continues to
decline in both urban and rural areas.
7. Use of broadband is higher in those rural areas with high
levels of commuting and lowest in sparse rural areas. Rural
internet users are more likely to use it for accessing services.
8. Rural residents travel greater distances and, out of
necessity, more of their travel is by car.
9. The average rural house price sale in 2007 was £257,600
compared with £212,823 in urban areas.
10. Housing affordability remains a major issue in rural areas,
especially for lower quartile prices and income. It is worse in
sparse rural areas, and in the South West, Norfolk and parts of Yorkshire.
11. Rural residents are likely to have a longer life expectancy,
and more of that is likely to be lived in good health than in
urban areas.
12. Children in rural areas tend to perform better at school.
13. The 2007 Index of Multiple Deprivation (IMD) shows rural
areas to have, on average, less concentrated deprivation than
urban areas. Changes since 2004 have tended to increase
inequalities between rural areas.
14. On most of the measures where rural areas are faring better
than urban areas on average, there are areas, generally sparse and
more remote, where conditions are not so good.
Economic wellbeing
1. Rural households have higher gross
incomes than those living in urban England. The median equivalised
household disposable income before housing costs in rural England
is £21,500 compared to £19,500 in urban areas.
2. 18% of households in rural areas were below the 'poverty
line' in 2007 compared to 19% in urban areas. When we take
housing costs into accounts the rural percentage rises to 19%.
Sparse rural areas have proportions on low incomes that are
similar to urban areas. Between 2004/05 and 2006/07 poverty is
increasing faster in rural households than urban households - 3%
compared with 1%.
3. While people living in rural areas, on average earn more than
those in urban areas, wages for jobs located in rural areas are
lower than for urban areas and lowest in the peripheral areas such
as Northumberland and Cornwall. (The difference is explained in
part by commuting patterns).
4. Turnover per worker by business tends to be lower in rural
areas. The highest rates are found in London and the Home
Counties, and some major cities.
5. In 2007 the most rural districts supported the highest rate of
employment nationally, with 78.2% of the working age population
there in work, education or Government approved training. The
average employment rate declines with increased urban character of areas.
6. Self-employment has also increased nationally but again rural
has outperformed urban England, with over 850,000 representing
11.7% of the rural population.
7. Employment in agriculture has fallen by about 7% since 1999
and by 39% for full-time farm workers. For the Knowledge Intensive
Business sector there have been increases in employment of up to
22% in remote rural areas between 1998 and 2005.
8. Rural districts supported a growth in new firm formation of
2.7% between 1998 and 2006, while in urban boroughs new
registrations declined by 2.3%.
9. In 2006 new firm registrations in core cities and principal
urban areas slightly exceeded 80,000, compared with just under
half this number in our most rural districts (80,325 Urban; 39,995
Mixed; 39,005 Rural).
10. Rural areas in 2006 supported more than the national average
share of workplaces in Energy & Utilities (41.4%),
Construction (28%) Transport and communications (24%) and
Manufacturing (23.6%).
11. Of the 19,289 additional workplaces between 2003 and 2006 in
rural areas, 79% were to be found in Banking, Financial and
Insurance sectors. By 2006 workplaces in these sectors made up
close to one third of all workplaces in rural areas, marginally
less than their share of urban firms.
Land and environment
1. Built-up areas cover around 8.5% of
England, with over half of this area being maintained as gardens
and green space. Rural towns, villages and hamlets account for
about a quarter of the total built-up area, or less than 2% of the
land area.
2. Demand for new development is significantly higher (per
household) in rural areas than urban areas and the countryside has
seen a greater number of new houses than in the urban fringe in
recent years.
3. The value of agricultural land rose sharply during 2007,
mainly due to increases in the prices of agricultural commodities
and to high demand for 'lifestyle' rural properties with land.
4. 2007 saw significant changes in agricultural commodity prices
and in elements of agricultural policy which are likely to have a
visible impact on the way England is farmed.
5. Over half of agricultural land now receives payments to
provide environmental benefits (the majority of this under the
Environmental Stewardship scheme).
6. Outdoor recreation is a popular form of leisure, with around a
third of adults in a recent survey taking a walk in the
countryside at least once a year. Participation in outdoor
recreation is lowest in the lower social classes, amongst single
people without children and those aged over 65.
7. The character of large parts of England's countryside is
changing as a result of built development particularly in the
lowlands and areas beside major transport corridors. Comparison of
the levels of visual and noise intrusion since the 1960s shows
that rural areas have become much busier with a three-fold
increase in the 'disturbed' areas in the most rural districts.
8. River water quality is generally improving, but concerns
remain about the diffuse pollution, particularly from nitrates,
arising from agriculture.
9. The growing season for crops has increased by around one month
in the last century and swallows arrive ten days earlier than they
did fifty years ago. Many species of wildlife are extending their
range northwards and some, such as the skylark and song thrush,
will become rare in parts of the country as a result.
10. Rural areas have a significantly higher carbon production
rate per person than urban areas. This is principally due to the
generally higher income and per capita consumption and because of
the higher emissions from heating of homes and car use in rural areas.
11. The English countryside is capable of providing significant
quantities of energy from renewable sources including wind and
biomass. But there is growing public debate about the wisdom of
diverting land from food to energy production.
12. Bioenergy (heat and electricity from biological sources)
currently generates less than 1% of the UK's energy and most
of this comes from natural gas tapped from landfill waste sites.