Rural economy receives £165m funding boost
This piece follows the publication of the Rural Economy Growth Review, which sets out a package of government led measures to stimulate sustainable growth in the rural economy and help rural businesses to reach their full potential.
The Review found that the economic structure in rural areas is broadly similar to that in urban areas, and that there are close links and interdependencies between them. However, it also identified some important differences between the economies in rural and urban areas.
In particular, the significance of small and medium sized enterprises (SMEs) is greater in rural areas, and they also face specific barriers to growth such as poor electronic communications; a lack of premises for businesses to start up, expand or diversify; and limited access to a local workforce with the right skills. The Review sets out its recommendations in 5 main areas: (1) enabling rural businesses to grow and diversify; (2) tourism; (3) food and drink sector; (4) delivering green growth; and (5) reducing regulations on farms.
Measures in the Review include £100 million from the Rural Development Programme for England (RDPE) to help small businesses; £25 million to support rural tourism and loans totalling £15 million for community-owned renewable energy schemes.
With the Environment Secretary Caroline Spelman describing how “for too long rural communities and businesses have been overlooked and left to fend for themselves”, what difference will the £165 million funding package make to rural businesses and communities?