Labour must put rural Britain at the heart of its economic reset if it is serious about driving growth in every part of the country, a new report has warned.

The Labour Rural Research Group (LRRG), in partnership with the Country Land and Business Association (CLA), has released a report calling for a fresh approach to rural policy that recognises the vital role of the countryside in national economic growth.

The report, titled The Future of the Rural Economy, argues that rural areas are too often overlooked in economic planning, despite their central role in food security, clean energy, housing, and nature recovery.

James Naish MP, vice-chair of the Labour Rural Research Group and lead author of the report (Image: The Labour Party)

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.”

Polling commissioned for the report found that nearly two-thirds of respondents — 63 per cent — believe Labour should make rural communities a higher priority.

Support was strong across party lines, with 71 per cent of Labour voters, 70 per cent of Conservatives, 74 per cent of Liberal Democrats, and 66 per cent of Reform UK supporters backing the call.

The report makes a series of recommendations to unlock rural economic growth, including a whole-of-government rural economic strategy, targeted investment in infrastructure and housing, support for scaling rural businesses, and a rural workforce plan.

It also calls for stronger rural proofing of economic policy and clearer approaches to land use, food security, and environmental markets.

The research argues that rural areas are “not economically weak, but economically constrained” by structural barriers such as poor transport links, planning delays, housing shortages, limited access to finance, and uneven public services.

Rural England generated £259 billion in Gross Value Added in 2023, but its share of national output has fallen from 19 per cent in 2001 to around 12 per cent today.

Productivity in majority rural local authorities is about 92 per cent of the England average.

Closing this 8 per cent gap could add £22.5 billion in economic output.

Jenny Riddell-Carpenter MP, 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.”

Baroness Deborah Mattinson, a Labour peer, said the report arrives at a critical time for the party.

She 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.”

Gavin Lane, president of the Country Land and Business Association, said there is broad public backing for stronger rural policy.

He 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.”