Labour’s next leader must put rural Britain at the heart of the party’s reset, new report argues
Local MP, Markus Campbell-Savours MP for Penrith and Solway, has backed calls from the Labour Rural Research Group (LRRG) that Labour’s reset must include a new approach to rural Britain if the party is serious about delivering economic growth across the whole country.
A new report released today by the LRRG, of which Markus Campbell-Savours MP for Penrith and Solway is a member, titled “The Future of the Rural Economy” warns that rural communities are too often treated as peripheral to national economic policy, despite their central role in delivering food security, clean energy, housing, nature recovery and long-term growth.
The report, authored by the LRRG but sponsored by the Country Land Association (CLA), finds that rural Britain remains economically significant, supporting millions of jobs, hundreds of thousands of businesses and major national supply chains. Rural England generated £259 billion in Gross Value Added in 2023, but its share of national output has fallen from around 19% in 2001 to approximately 12% today. Official Government data cited in the report shows that productivity in majority rural local authorities is around 92% of the England average, indicating an 8% productivity gap. Closing this gap could generate an estimated £22.5 billion in additional economic output.
The report comes off the back of polling commissioned by the LRRG, which shows:
Almost two-thirds of respondents — 63% — said it would be the right decision for Labour to make rural communities and the rural economy a higher priority than in recent years. Only 5% said it would be the wrong decision.
Support cuts across party lines. Prioritising rural Britain was backed by 71% of Labour voters, 70% of Conservative voters, 74% of Liberal Democrat voters and 66% of Reform voters, suggesting that a stronger rural economic offer could help Labour speak to voters across the political spectrum.
When asked about Labour’s rural policy offer under a potential Andy Burnham premiership, 27% of respondents said they were confident the party would strengthen its offer, with 34% respondents saying they “didn’t know”. The LRRG argues that this shows the opportunity for Labour’s next leader, and the country’s new prime minister, to back Britain’s rural areas.
The report sets out a series of recommendations to unlock rural economic growth, including a whole-of-Government rural economic strategy, stronger rural proofing across economic policy, targeted investment in infrastructure and housing, support for rural business scaling, a rural workforce strategy, and clearer approaches to land use, food security and environmental markets.
The LRRG concludes that if the next phase of Labour in Government is to deliver meaningful growth, rebuild trust and speak to the whole country, rural communities must be part of the strategy from the start.
Markus Campbell-Savours MP for Penrith and Solway, and member of the LRRG said: ”My constituents know that I am prepared to stand up for my farmers, and I will never shy away from fighting their corner. But there is much more that makes up the rural economy in Penrith and Solway.
“This report challenges the government to recognise the capacity in areas like ours to drive economic growth. Working with my rural colleagues we will be ensuring that Andy Burnham, who already understands the power of devolution, sees the important role rural economies can play in delivering growth in every corner of the UK.”
James Naish MP, Vice-Chair of the Labour Rural Research Group, and lead author of the report said:
“Labour’s central mission is economic growth, but this growth must be felt in every part of the country.
“As this new report sets out, 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.
“Place-based policy is essential if we want to deliver for the UK as a whole.
“Our polling shows that voters recognise this. They want the government to take rural communities and the rural economy more seriously as part of rebalancing the economy, and they recognise that farming, food security and rural growth can be central to the country’s future.”
Jenny Riddell-Carpenter MP, and Chair of the Labour Rural Research Group, said:
“Our polling shows that with a strong vision for rural Britain, Andy Burnham can make the case that rural Britain will be better off under a Labour Government.
“Nearly 1/3rd feel confident that he will be a strong leader on rural affairs, and 1/3rd are undecided. There is a clear opportunity to reset how Whitehall thinks about rural Britain.
“The answer is not to treat rural areas as places of decline or dependency, but as strategic environmental and economic assets capable of driving growth, strengthening resilience and helping to deliver the socio-economic change the country was promised.”
Baroness Deborah Mattinson, Labour Peer, said:
“Rural communities have the potential to play a crucial role in Britain’s growth, but are currently punching below their weight. Too often they are forgotten, or ignored. The report therefore calls for a new focus on enabling rural economies, with a holistic approach that treats economic growth, service provision and environmental stewardship, including respect for nature, as interconnected.
“Many voters interviewed for this timely report had voted Labour – often for the first time – in 2024, but were now drifting away, disappointed, as the recent local elections a few weeks ago, demonstrated. The political imperative is urgent. Getting this right will correct long term failings and enable rural communities to benefit as they make a much-needed contribution to Britain’s economic growth.”
CLA President, Gavin Lane, said:
“The public are on the side of rural Britain, and they expect the next government to be too. Taxes on family farms and businesses have left businesses reeling, but Andy Burnham has the chance to reset the relationship and work to unlock the enormous potential of the economy in rural areas.
“There is no more time to waste on endless consultations and talking-shop committees. This report is a ready-made plan full of meaningful ideas. Adopting these policies, which are backed by Labour’s own MPs, will grow the economy and create jobs in areas that often see high levels of deprivation.”
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