Written evidence submitted by NFU Scotland (COL0024)

Scottish Affairs Committee consultation                                                                       February 2023

Cost of living: Impact on Rural Communities

NFU Scotland response

NFU Scotland (NFUS) is the leading agricultural organisation in Scotland. Representing more than 9,000 farmers, growers, and crofters, our members provide and support thousands of jobs and deliver significant economic, social and environmental benefits across Scotland.  

Agriculture is the lynchpin of rural Scotland and is an important part of Scotland’s booming food and drink industry. Scottish agriculture generates a gross output of £3.3 billion annually. The farming and crofting sector is committed to sustainable food production, enhancing biodiversity and helping to tackle climate change.

1. The particular challenges facing Scottish rural communities in relation to the cost of living compared with other areas of the UK 

The cost of transport for rural communities is often higher as commutes are longer and increases in fuel prices have impacted our members greatly over recent months. Access to public transport is usually limited and in rural areas, it often costs a lot more for broadband, especially where there is only one provider available.

Our members highlighted that labour shortages are a major concern for their businesses in a recent NFUS survey. Both permanent and seasonal labour shortages have been reported across the country and NFUS is highlighting this to both governments and working to encourage a better understanding of career opportunities. Issues with connectivity, housing availability and transport need to be addressed to help to attract and retain people in rural areas.      

2. To what extent recent UK Government cost of living support measures meet the needs of rural populations in Scotland; 

NFUS welcomed the Energy Bill Relief Scheme for businesses that was introduced in September 2022. However, we are disappointed that the farming sector will not receive the high-level support that some other sectors will continue to receive, post March 2023.

We welcome the UK Government’s alternative fuel energy support scheme that will enable farmers living in domestic houses to be eligible for the scheme once the application portal is opened later this month.  

3. Whether UK Government cost of living support could be better tailored to meet the needs of rural communities in Scotland; 

Rural homes, farms and crofts are often off grid and harder to treat for energy efficiency and transition to climate friendly energy sources due to their location, age and size. It is therefore essential that improved funding and support for rural (and off grid) farms and crofts is made available to manage future energy prices and shocks alongside the transition to net zero.

This includes:  

•       Resolution of whether farm and croft houses are classed as homes or businesses.
•       Funding support for the full range of energy efficiency improvements for farms and crofts.
•       Support for the full range of renewables technologies at scale that decarbonises farms, crofts and can support wider rural communities such as on farm AD, solar arrays, ground source heat pumps, and wind farms alongside traditional energy solutions such as air source heat pumps.
•       Advice and support services tailored toward off grid and rural homes and rural businesses. 

NFUS is keen to work with both governments on these issues as the sector continues to produce food sustainably, helps to tackle climate change and enhance biodiversity. 

4. Any further steps the UK Government could take to support Scottish rural communities in relation to the cost of living; and 

The farming sector directly employs around 67,000 people and supports thousands of supply chain businesses across rural communities.  Given the importance of our businesses to local communities across rural Scotland, we call on the UK Government to extend high-level business energy support for primary producers who are reliant on electricity.  

NFU Scotland was disappointed that primary producers will miss out on the highest level of support from April. We believe this has the potential to undermine the nation’s ability to produce its own food and could have a negative impact on rural communities.  

Farmers and crofters are a key part of the Critical National Infrastructure (CNI). Farming businesses, particularly those heavily reliant on electricity to rear poultry and store fresh produce safely, will struggle to absorb the huge hikes in energy that they face in the year ahead. 

5) How effectively the UK and Scottish governments have worked together to coordinate and provide support in relation to the cost of living for the people of Scotland. 

It is crucial that both the UK and Scottish Governments work together to collectively understand the issues facing people living and working in rural Scotland. Regular engagement at both Ministerial and official level between the UK and the Scottish Government is essential.  

February 2023