11 June 2008
Urban focus ‘leaving rural shires in the cold’
Petra Barnby
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Shire district communities are being left behind economically because city councils and Government agencies do not fully understand the needs of rural businesses, the Commission for Rural Communities (CRC) has clamed.
A Government-commissioned report by CRC chairman Stuart Burgess warned rural businesses face increasing ‘challenges and barriers’ due to ‘an incomplete understanding of rural businesses by urban-based authorities.’
In his report, Mr Burgess wrote: ‘There is strong evidence that rural businesses struggle to access the support and advice available from the Government or work effectively in partnership to address the obstacles they face.
‘This can include hurdles in planning or infrastructure, accessing services or gaining new skills for employees – all of which can prevent the leap from micro business to a business that blossoms to boost the local economy. 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.’
Mr Burgess also calculated rural businesses could generate twice the amount of income they currently do, given the right amount of government support.
He said: ‘Rural areas host around 30% of England’s businesses. In 2005, these earned at least £325bn.
‘My report suggests unfulfilled potential from rural firms might be around £236-£347bn per annum.’
He also cited other key issues including a loss of young people and ‘opposition from residents or from absentee home owners to developments that create or maintain jobs in their village or community’.
Mr Burgess called on the prime minister to convene a national rural summit where ministers and civil servants could meet councillors and business leaders.
The full report can be downloaded at www.ruralcommunities.gov.uk.
 Download the CRC report England's rural areas: steps to relelase the economic potential here |
In his report, Mr Burgess wrote: ‘There is strong evidence that rural businesses struggle to access the support and advice available from the Government or work effectively in partnership to address the obstacles they face.
‘This can include hurdles in planning or infrastructure, accessing services or gaining new skills for employees – all of which can prevent the leap from micro business to a business that blossoms to boost the local economy. 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.’
Mr Burgess also calculated rural businesses could generate twice the amount of income they currently do, given the right amount of government support.
He said: ‘Rural areas host around 30% of England’s businesses. In 2005, these earned at least £325bn.
‘My report suggests unfulfilled potential from rural firms might be around £236-£347bn per annum.’
He also cited other key issues including a loss of young people and ‘opposition from residents or from absentee home owners to developments that create or maintain jobs in their village or community’.
Mr Burgess called on the prime minister to convene a national rural summit where ministers and civil servants could meet councillors and business leaders.
The full report can be downloaded at www.ruralcommunities.gov.uk.
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