Rural England running at less than half capacity

Two years ago the Commission for Rural Communities (CRC) estimated the untapped potential from rural businesses to be between £236 billion and £347 billion per annum, against an actual contribution of around £150 billion.

After a year consulting rural entrepreneurs and businesses across England, the CRC has today (Tuesday, September, 6) outlined its proposals to ‘unlock that rural potential’.

“More of the potential of our local rural economies can and should be realised,” said Dr Stuart Burgess, chairman of the CRC and the Government’s Rural Advocate.

“Following this Government’s emergency budget it is clearer than ever that helping the release of this potential must be a big part of the next stage of our national economic growth,” he added.

Apart from anything else Dr Burgess’ said rural areas were ‘crying out’ for broadband to kick-start their businesses.

“The rural community needs to be economically viable and broadband is essential for farmers, young people and businesses,” he said.

The CRC said the Government ‘must ensure’ a minimum speed of 2Mbps is delivered across all rural communities by 2012 and recommended ‘community broadband solutions’ in the more remote rural areas.

Dr Burgess said Cybermoor, a community broadband project in rural Cumbria, was ‘a beacon of what can be done’.

The CRC has also called for a planning system that ‘supports rather than frustrates’ economic growth and for local authorities to ‘respond positively’ to community-led plans.

“Areas of rural England will die without affordable housing and a change in planning rules is essential to allow communities to thrive,” said Dr Burgess. 

Cllr Andrew Bowles, chairman of the Local Government Association’s Rural Commission and a contributor to the CRC report, said the Government’s ‘Big Society’ would help local people deliver rural growth.  

“Through the work of Local Enterprise Partnerships, local authorities are going to be central to releasing more of the potential of rural economies in future,” he said.

Caroline Spelman, Defra Secretary, welcomed the study which she said had ‘captured the views of rural businesses and communities across England’.

“I am confident that the resulting report ‘Agenda for Change’ will have useful insights and recommendations on ways to pursue and deliver further economic growth in rural areas,” she said.

She added her decision to abolish the CRC in 2011, in favour of a Rural Communities Policy Unit within Defra, would not affect its recommendations.

“I have asked the CRC to discuss with relevant departments and other bodies how best the CRC can support them [the Unit] in considering and, as appropriate, working with their proposals,” she said.

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