Rural Affairs, Climate Change and Environment Committee – Draft Budget 2013/2014

SCVO welcomes the opportunity to respond to this enquiry.

Economic growth

As in our other budget submissions we question the focus on economic growth which persists throughout the Draft Budget. It is our view that a focus on ‘sustainable economic growth’ will not address the imbalances that persist in our economy, society, or environment.  Priority should be given to the social outcomes that we know (from the Humankind Index and other research) matter to the people of Scotland.

Rural poverty

We are concerned by the findings from the HIE report[i] into a minimum income standard in remote rural Scotland. The conclusion of the report that 10-40% extra income is needed for those living in remote rural communities is particularly worrying. For working age people without children who receive benefits, they cover only a third of what they need and for families with children, they provide approximately half of what is necessary. Additionally, the minimum wage only produces about two thirds of a minimum income for a single person living in remote rural Scotland. These are not new problems, but with stagnating wages, cuts to benefits and an increased cost of living, the challenges for those living in remote rural communities are clearly growing. While there are already many measures in place to mitigate some of the higher costs of remote life (free ferries, rural fuel rebate etc.), this report shows that these measures are no longer sufficient and a rethink is required which addresses the many other challenges. Working alongside public services, third sector organisations must have the support they need to be at the heart of this response. Community transport providers, development trusts, community care providers and others will all have a role to play in tackling the problems highlighted by this report.

Connected rural communities

SCVO wishes to highlight the importance of the elements of this budget that are concerned with support for rural communities through information services, networking and stakeholder engagement activities. Sustainable economic success is not built solely through the activities of the private sector, it is also driven by strong bonds of social capital in local communities. The importance of networking and knowledge exchange activities within and between rural communities and also in the fabric and management of the community spaces where community activities can occur is often seriously undervalued when budgeting decisions are made.  Investment in these areas should be increased as a proportion of the investment in rural Scotland as a whole. The rurally targeted development activity undertaken by the Scottish National Rural Network and by LEADER Local Action Groups provide relatively inexpensive but effective models to be built on and developed, offering excellent value for money. The new Rural Parliament should be supported to promote networking and knowledge exchange activity, as well as its advocacy role as a collective voice for rural Scotland. Direct advice and support services should not solely be targeted at the farming community, but extended to cover a range of rural businesses and third sector groups that engage with rural development activity and funding. We welcome the support available for communities to develop broadband in rural areas through Community Broadband Scotland. The community-led approach is a positive step and will hopefully deliver a variety of community based solutions. It is important that this investment is maintained to continually develop broadband access in rural areas. Digital technology can have a key role to play in addressing many of the problems that persist in rural communities, by developing new ways of accessing services, reducing living costs and encouraging social participation.

Community energy

Renewable community energy projects have the potential to transform rural communities, provided they are given sufficient resources and support. Many in the third sector support the 2020 renewable energy targets and in particular the 500MW target for local and community ownership. However, the sector would like to see a new and more ambitious target set for 2030 which only takes into account genuine community ownership. This would give communities greater confidence to develop new projects and deliver the increased benefits that ownership brings. SCVO is concerned by the number of community energy projects which have been unsuccessful[ii] and believes that more must be done to prioritise community owned projects which can produce the finance to build resilient communities.

Community transport

We note the Government Scottish Government’s response to the Investment and Infrastructure Committee’s July 2013 report[iii] on community transport. Whilst there were some welcome commitments in the response, we would like to see more resources and commitment in this area. Community transport continues to provide a vital service for people and communities in rural areas. It is a preventative service which delivers significant financial savings as well as social benefits. To secure the future of community transport and help deliver greater benefits we would like to see improved strategic coordination of services, expanded eligibility of concessions, reformed procurement practices and capital investment in vehicles.

Conclusion

The approach to rural affairs outlined in the Draft Budget could be built around a more strategic approach. We would like to see the committee examine in greater detail the connections between the policy areas outlined above and also how they relate to other areas of the budget, such as health or employment. The third sector has always performed a central role in rural communities. However, with the increasing challenges now faced by people in these areas, the sector has become more important than ever. Through its network of members, users and other stakeholders it helps bring together people to develop more resilient communities. It is vital that local authorities, public bodies and Government continue to recognise the value that the sector brings to rural communities, and ensure that the sector’s work is fully supported.