Rural economies report

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ePolitix.com Stakeholders comment on the publication of a report into the economy of rural communities by Dr Stuart Burgess, the government's rural advocate and chairman of the Commission for Rural Communities.

In the report, Dr Burgess says economic potential in rural areas is currently unfulfilled by £236bn to £347bn per annum and suggests a number of ways to improve the economic output, including the creation of a Rural Finance Forum.

Party response:

Peter Ainsworth, Shadow Secretary of State for Environment, Food and Rural Affairs, said: "This report is right to highlight the considerable enterprise and industry in England’s rural areas, which the government’s erratic and disjointed approach is failing to maximise.

"Unlocking the potential of the rural economy could as much as double the £325bn currently earned by rural firms, reduce worklessness and bear down on the persistently high levels of poverty in the countryside.

"The government must take this report seriously and shift the potential of the rural economy from the margins to the mainstream of policymaking."

Stakeholder response: Commission for Rural Communities

To send a comment to the Commission for Rural Communities click here

Dr. Burgess, chairman, said: "In my visits to rural areas I am constantly reminded how enterprising rural people are and what diversity of successful firms and resilient communities we have.

"My report records their economic strengths and the substantial contribution they already make to the nation’s economic performance. However, we also know there is scope for significant improvement, and for some communities this will only come from better support.

"I was delighted, therefore, to be asked by the prime minister to advise him on ways in which the full potential of rural economies can be harnessed.

"Rural areas host around 30 per cent of England’s businesses. In 2005, these earned at least £325bn. However, a similar proportion of firms located throughout England, not just in our villages and rural towns, earned higher levels of turnover, showing us that rural economies have a further potential for growth.

"My report suggests this unfulfilled potential from rural firms might be around £236bn to £347bn per annum. By lifting the performance, especially of medium and larger firms in rural areas, by attracting more investment, by strengthening the capacity to innovate, they could perhaps double their economic contribution; helping reduce worklessness and poverty in rural areas, close the persistent gap between rural and urban wages and make more rural communities resilient against future economic and environmental shocks.

"My report sets out a package of practical proposals for co-ordinating government activity to improve areas of support for and development of people and enterprises in the rural business sector in order for this potential to be realised:

· the creation of a Rural Finance Forum to examine and overcome the causes of lower capital investment, poorer access to finance, and lower funding for rural economic initiatives;

· the creation of a Rural Innovation Initiative to address the special challenges and opportunities in sparse or remote rural areas;

· development of new forms of brokerage, networks and clusters to improve access to employee and business support programmes and share good practice; and

· a new compact between government, insurance and rural industries to improve response to shocks caused by disease and bad weather and develop new insurance products.

"At the heart of any drive for improvements will be better understanding of the scale and performance of rural economies from business and city leaders, economic departments and agencies.

"This is why I have also recommended that the government convenes a national summit and sponsors a series of regional summits to focus attention and activity of government and its agencies on releasing the potential of rural economies.

"I now look forward to government - nationally, regionally and locally - being inspired to seize this compelling opportunity and focus co-ordinated efforts on the needs of rural entrepreneurs, businesses, employees and residents, not just for the benefit of rural England but the entire nation."

Stakeholder response: Campaign to Protect Rural England

To send a comment to the CPRE click here

Tom Oliver, head of rural policy, said: "Rural England contributes very substantially to the wellbeing and prosperity of the whole country. It is essential to have wise policies in place to enhance that contribution, while protecting local communities and the environment."

"CPRE warmly welcomes acknowledgement in the report that the nation is highly dependent on rural areas to provide landscapes, cultural and spiritual refreshment, as well as its economic role.

"Further expansion of rural economies will need to be reconciled with the environmental effects of new development, an issue that the report does not adequately address.

"It is crucial that the very qualities which make the countryside valuable to society are not squandered in a race to pursue economic activity alone

"In particular, CPRE recognises the urgent need to secure rural affordable housing and at the same time protect the magnificent beauty of our rural landscapes for everyone to enjoy in the future.

"To secure our cherished countryside while addressing rural disadvantage and the opportunities for rural innovation and business success is a big challenge. We are looking forward to working with the Rural Advocate and others to achieve this" Tom Oliver concluded.

Stakeholder response: Business in the Community



To send a comment to BITC click here

Christine Larson, rural director, said: "Business in the Community welcomes this report by the CRC which highlights the importance and untapped potential of the rural economy. We believe that business, with the necessary practical experience to support entrepreneurs and identify new opportunities, has a key role to play in working in partnership with government, NGOs and local communities to address the issues that currently act as barriers to realising this potential. We hope that this report will motivate all these parties to recognise the benefits to be had by working together to support rural areas."