The True North, a think tank developing bold and ambitious policy ideas and initiatives for the North East and Cumbria is calling for a national reset on policies that affect rural areas in 2025.

This includes a demand to end the North/South divide, the creation of a Northern Rural Powerhouse, warning Government and regional authorities that all policies need to be rural proofed if the UK is to tackle the ‘greatest rural challenge for a generation’ and stem the decline of the economy in these areas.

Chair of the True North research and policy think tank, former Carlisle MP John Stevenson said: “The rural economy really does matter.

“Here in the North East and Cumbria – the True North – it is even more important given the size of the rural economy and its wider impact.

“It is large section of our economy including  sectors such as tourism and farming which employ significant numbers of people and constitute a large proportion of small businesses.

“Appreciating this is vital hence the importance of devolution and more local decision making.

“Following on from a very successful rural economy conference we are calling for firm action by government, both local and national to ensure we have the policies and support in place to ensure a prosperous future for our people, businesses and rural communities.”

The call comes after a rural economy event held at Hexham Racecourse last month and a survey of rural stakeholders across the northern region.

Lord Curry of Kirkharle gave a prevention on the twin disadvantage that the north suffers from with the North/South divide but also the Rural/Urban split.

Angela Lee went on to demonstrate the headwinds faced by many farming and small businesses in the rural north.

Saying: “It is crucial that we maintain a vibrant private sector as that is where the funding comes from for our public services.

“Yet businesses face increased employment costs, bureaucracy and red tape, serious delays in planning, the current inheritance tax disaster for all businesses and great uncertainty for the future”

MP Robbie Moore talked about how the majority of departmental budgets a ecting the rural economy lie outside on DEFRA and so there should be put in place rules for rural proofing of all Government policies.

In addition, groups such as the Environment Agency that operate huge budgets need to be brought back into Government control.

These problems that were highlighted by Robbie Moore MP were the same issues that were in place under the previous fourteen years of Conservative government.

Results revealed that Government decisions and regional omissions on rural matters are having a significant and detrimental effect on the national and regional economic performance.

This includes Government decisions on areas such as national insurance, inheritance tax, grant funding, and over regulation.

In addition, regional issues such as the lack of attention to rural constraints in the North East Combined Authority Growth Plan and the slow pace of potential devolution in Cumbria. 

Peter Jackson, Chair of the Rural Economy event, and local farmer and businessman said: “If Government, Regional and Local Authorities are serious about creating a vision for the future of our region, this has to include a focus on our rural economy.

“In the North East rural areas contribute 25 percent to the region’s Gross Value Added (GVA) and 23 percent in Cumbria.

“This demonstrates that any Growth Plan has to be serious about growing the rural economy and have real policies in place to stimulate rural business.”

Amongst its other recommendations, the report demands, 

1. A rewrite of the Treasury green book criteria to end the disadvantage for the North/South and Rural/Urban divideand reverse decades of under investment in basic infrastructure

2. More devolved powers of both revenue and capital budgets to regional areas

3. The creation of a rural investment zone to include areas such as localised tax incentives for businesses and the exploration of a local energy policy

4. An increased focus on tourism in the region

A copy of the report has been sent to HM Government Ministers, Northern MPs, Mayors at the Tees Valley and North East Combined Authorities and local council leadersand chief executives.

The report can be read here

The True North looks at the northern counties of Cumbria, Durham, Northumberland and Tyne and Wear.