The big talking point in my house over the New Year was the ever increasing price of fuel, especially the price of heating oil, the main fuel in rural areas.
The way the price increased from 45p /litre to 70p plus in the space of two weeks in early December defies logic, surely the fuel was in the depot bunkers prior to the cold snap? Today (11th Jan 2011) the price has fallen to 55p/litre which to my simple mind confirms that some suppliers took advantage of the situation.
Added to this is the ever increasing price of road fuel, caused in part by the oil price, increases in duty and the VAT increase of 2.5%. This affects everyone but is much harder on people in rural areas that by necessity need a car. A recent report by the Commission for Rural Communities, “A minimum income standard for rural households” concluded that the cost of a basic living standard was 20% more in rural areas. This standard is based on what items ordinary people think households need to afford a minimum acceptable standard of living. Researchers talked to groups of people in rural England about what things are essential in rural towns, villages and hamlets.
The findings illustrate that the more remote the area, the greater the extra expense. To afford a minimum standard of living, a single person needs to earn at least:
- £15,600 a year in a rural town
- £17,900 a year in a village
- £18,600 in a hamlet or the remote countryside
- In comparison, urban dwellers need £14,400, to meet the specified minimum.
One area that the report only touched on was the cost of travelling to employment for people who are in work, the increases in fuel, coupled with rising car parking charges in towns makes some jobs at the minimum wage levels marginal for rural dwellers.
An argument could be made that living in the country has advantages that outweigh the additional costs of living, however I doubt that comes into the equation when you are struggling to find the cash to fill the fuel tank of your car. Anyway I would suggest that this is balanced by the easier access to services in urban areas, leisure facilities, health care, education and public transport.
A consequence of all this is, I believe, a potential increase in the numbers of people who run businesses at home. With a decent broadband connection (I know that’s not the case in some rural areas) it is possible to communicate as effectively from home as it is in the office without the cost and stresses of commuting. If the next few years are about rebalancing the economy then the strategy should include an element of rebalancing the rural / urban costs of living.
Should you want to investigate starting a business why not attend one of BIP’s workshops?
The way the price increased from 45p /litre to 70p plus in the space of two weeks in early December defies logic, surely the fuel was in the depot bunkers prior to the cold snap? Today (11th Jan 2011) the price has fallen to 55p/litre which to my simple mind confirms that some suppliers took advantage of the situation.
Added to this is the ever increasing price of road fuel, caused in part by the oil price, increases in duty and the VAT increase of 2.5%. This affects everyone but is much harder on people in rural areas that by necessity need a car. A recent report by the Commission for Rural Communities, “A minimum income standard for rural households” concluded that the cost of a basic living standard was 20% more in rural areas. This standard is based on what items ordinary people think households need to afford a minimum acceptable standard of living. Researchers talked to groups of people in rural England about what things are essential in rural towns, villages and hamlets.
The findings illustrate that the more remote the area, the greater the extra expense. To afford a minimum standard of living, a single person needs to earn at least:
- £15,600 a year in a rural town
- £17,900 a year in a village
- £18,600 in a hamlet or the remote countryside
- In comparison, urban dwellers need £14,400, to meet the specified minimum.
One area that the report only touched on was the cost of travelling to employment for people who are in work, the increases in fuel, coupled with rising car parking charges in towns makes some jobs at the minimum wage levels marginal for rural dwellers.
An argument could be made that living in the country has advantages that outweigh the additional costs of living, however I doubt that comes into the equation when you are struggling to find the cash to fill the fuel tank of your car. Anyway I would suggest that this is balanced by the easier access to services in urban areas, leisure facilities, health care, education and public transport.
A consequence of all this is, I believe, a potential increase in the numbers of people who run businesses at home. With a decent broadband connection (I know that’s not the case in some rural areas) it is possible to communicate as effectively from home as it is in the office without the cost and stresses of commuting. If the next few years are about rebalancing the economy then the strategy should include an element of rebalancing the rural / urban costs of living.
Should you want to investigate starting a business why not attend one of BIP’s workshops?
