Committee publication · Correspondence · 20 May 2026

Correspondence from HM Treasury relating to rural proofing policies, dated 6 January 2026

From: Environment, Food and Rural Affairs Committee

Inquiry: Work of the Department and its arm’s-length bodies

Summary

HM Treasury responds to the Environment, Food and Rural Affairs Committee's December 2025 inquiry into rural proofing policies. Treasury confirms government commitment to rural-proof all policy decisions, describes its collaboration with Defra on guidance and training, and details £2.7 billion annual sustainable farming support, £1.9 billion broadband investment, £5 billion regeneration funding, and the Rural Fuel Duty Relief Scheme as examples of rural-focused support.

Key findings

Government committed to rural-proofing all policy decisions; Treasury considers rural economy impact on spending, regulation, tax and financial services policy
Defra leads rural proofing, providing guidance and civil service training; Treasury Policy Excellence teams apply cross-government guidance including rural proofing principles
£2.7 billion annual commitment to sustainable farming and nature recovery; up to £2.3 billion directly benefits farmers
£1.9 billion over four years invested in gigabit broadband and 4G connectivity for hard-to-reach rural areas
£5 billion Pride in Place regeneration programme and £2.3 billion Local Transport Grant funding address rural growth blockers; Rural Fuel Duty Relief Scheme provides 5p/litre reduction in high-cost remote areas

Tone

Procedural

Topics

rural-policypublic-financeinfrastructure

Key actors

Alistair Carmichael MP, HM Treasury, James Murray MP, Defra

Notable line

“Rural proofing ensures that these areas receive fair and equitable policy outcomes.”

Key Quotes

“The Government has made a commitment that all policy decision-making should be rural proofed.”
— James Murray MP · Outlining government commitment on rural proofing approach

“Rural communities are an important part of the economy; they are home to around one-fifth of England ' s population and half a million registered businesses.”
— James Murray MP · Justifying importance of rural policy consideration

“The Treasury takes its obligation to rural proofing seriously and considers the impact of relevant spending, regulation, tax or financial services policy decisions on the rural economy.”
— James Murray MP · Treasury's departmental responsibility on rural proofing

“The Government has committed £2.7 billion per year to support sustainable farming and nature's recovery.”
— James Murray MP · Rural funding commitment example

View original document →

Source · parliament.uk record ↗