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Monday 23 January 2012

Rural Areas Set for Renaissance?

This might seem a very optimistic statement given the doom and gloom that surrounds the UK and European economies at the moment, but I do believe there are a number of factors that give cause for a positive outlook.

Nationally, there are a number of initiatives that have raised the prospects of rural areas seeing more resources being allocated as government seeks to rebalance the economy. Firstly Defra have just announced the creation of 14 Rural and Farming Networks. These would have direct contact with government, meaning they would be able to directly shape future rural policies. Networks representing different areas of England would identify and feed back local issues and concerns straight to the government, in order to make policies more rural-friendly. They would make a direct link between rural areas and the government, creating new opportunities to develop better and more targeted policy.

Secondly the government is to review the formula that helps decide how much money local authorities receive to provide rural services. The pledge is contained in the government's response to a consultation on proposals enabling councils to keep a share of business rates they collect rather than paying them to Whitehall. Published on Monday (19 December), the response will be seen as a boost for rural local authorities who have long campaigned for a fairer funding deal from central government.


It says the government will consider limited technical adjustments to the relative need formulae used to determine funding for rural services and concessionary travel. For many years there has not been any acknowledgement that it costs more to deliver services in rural areas than it does in urban areas. This review is a chance for rural councils to persuade government that the current situation is unfair.


Thirdly, the government plans to establish six Rural Growth Networks to support countryside businesses and bolster the rural economy. The creation of the networks aims to help rural areas overcome barriers to growth, as outlined in Defra's rural economy growth review. Barriers include a lack of suitable premises and poor provision of infrastructure, such as superfast broadband and mobile networks. The government is investing around £15m in the pilots, including up to £2.3m to support rural enterprises led by women. Rural Growth Networks will typically consist of a small number of sites or 'enterprise hubs' in rural locations.


Locally; Devon and Somerset County Councils have won over £31 million pounds to support the development of Superfast Broadband in the two counties, together with £10 million from the councils this is a huge investment in infrastructure for the rural areas. The focus will be on those areas where BT will be unlikely to invest due to the low number of potential customers. Superfast broadband will allow businesses located in remote areas the capability to compete on equal terms with both UK and overseas competitors.
The Local Enterprise Partnerships in the region (Heart of the South West and Cornwall and Isles of Scilly) both have rural growth as one of their key objectives over the next three years. As they become established I am sure they will be pushing government to build on the actions they have already taken.

I don't think I can remember so many different initiatives supporting the growth of rural economies in England at any one time. They are desperately needed as unemployment rises and the cost of getting to work is so high for people living in remote areas. Jobs created in rural areas help in so many ways, they help maintain rural communities, they reduce travel (helping the environment) and they support the well being of local residents. If jobs can be created and sustained then the future for rural areas can be bright.

Stewart Horne

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