Carmichael welcomes Scottish Affairs Committee report on ‘rural premium’ paid by islanders

Orkney and Shetland MP, Alistair Carmichael, has today welcomed a new report by the Scottish Affairs Committee on the ‘rural premium’: higher prices that communities in remote rural areas pay, relative to urban areas, to access the same goods and services.  

The report, published this week, highlighted three key areas – energy, food security and transport – and finds that rising costs in each sector disproportionately affects rural communities in Scotland. Examples cited by the Committee include exposure to fuel price inflation due to being more reliant on transport, a reliance on expensive alternative fuels for off-grid households and higher charges for food deliveries to remote locations.  

MPs acknowledged the unprecedented package of support provided by the UK Government which has helped to mitigate the impact of price spikes, but found that financial support tailored towards remote communities experiencing the ‘rural premium’ would have more effectively alleviated the acute and unique pressures those households face.  

MPs are calling for the Scottish and UK Governments to work together in order to better understand the scale and complexities of the challenges facing rural communities in Scotland.  

Mr Carmichael said: 

“I welcome the report from the Scottish Affairs select committee, which hits the nail on the head regarding the financial disadvantages faced by rural and island households. From the state of our housing stock to our natural climate it is little wonder families pay a premium to live in our communities – and current policy responses have not gone far enough to bridge that gap. 

“I do not begrudge ministers too much for seeking quick policy solutions for urgent problems, and the 2022 energy price crisis was certainly urgent. Even so the fact that our communities have persistently high fuel poverty, for reasons that are fairly obvious, is hardly a new state of affairs.  

“At some point ministers and officials are going to have to take “rural-proofing” – and island proofing – seriously. Our governments need a comprehensive plan to tackle fuel poverty where it is at its worst – in the Highlands and Islands.”