Rural productivity driven by hi-tech boost and better roads

More rural opportunities could increase rural employment in England by 6%.

Productivity could grow faster in the countryside than urban areas over the next decade, with a rise in rural jobs, thanks to a high-tech boost from speedier broadband and better transport links, a new analysis has shown.

Increased connectivity, spread of innovation, growth in knowledge-based industries and changes in working patterns are expected to help rural areas catch up with urban areas over the next decade, contributing to the government’s long-term economic plan.

This is expected to deliver higher wages and output of rural areas could potentially increase by around an extra £35 billion.

Increased economic rural opportunities could increase rural employment in England by 6% - or more than 300,000 jobs.

The drivers of growth include:

• improved transport links - the government recently announced £15bn investment in national roads infrastructure. This includes £2 billion to dual the entire A303 and A358 to the south west and build a tunnel at Stonehenge, allowing road users to drive on a dual carriageway from London to within 15 miles of Land’s End.
• superfast broadband rollout - by 2017 public investment of £1.7 billion will see 95% of UK premises gain access to superfast speeds with work ongoing to identify suitable options to connect the remaining 5% hard to reach areas.
• tackling mobile phone ‘partial not-spots’ – the government has secured a binding agreement with the mobile networks EE, O2, Three and Vodafone to tackle poor signal issues in so-called ‘partial not-spots’. This includes a £5bn investment programme from the mobile networks to improve mobile infrastructure with guaranteed voice and text coverage from each operator across 90 per cent of the UK by 2017.
• changes to working practices – according to research a growing group of around 2 million people are choosing to live in rural areas and work from home, thanks to improved connectivity. Other benefits would include shorter commuting times and increased productivity.

Environment Secretary Elizabeth Truss said:

"This is a truly exciting time for rural communities with the countryside set to become even more of an economic powerhouse for the UK, building our economic security.

"Improved infrastructure is a great driver of change and our investment in broadband and transport links, together with improved mobile phone signals, is unlocking the huge potential for growth in the countryside where entrepreneurial activity is outstripping many parts of the UK.

"Whether you’re in a cottage in Cornwall or a small business in one of our great national parks, you are better connected now than ever before – ultimately that means greater opportunities, more jobs and improved wages and a better future."

The analysis, produced by Defra, shows that although currently workers in rural areas in England are 83% as productive as those in urban areas it suggests rural productivity has the potential to grow faster than the average expected rate for the UK, allowing the countryside to gain ground on towns over the course of a decade.

People living in the countryside are more likely to run their own businesses than people in towns. It is already home to a quarter of all businesses, despite only around 18% of people living in rural areas. Among the fastest growing sectors have been knowledge-based industries like IT and consultancy.

Increasingly, rural entrepreneurs are getting better connected into markets in Britain and around the world, like those living in towns and cities, with improvements to superfast broadband connections and mobile phone signals.

More information

• For the analysis, see Defra policy brief, How increased connectivity is boosting economic prospects of rural areas December 2014
• Further details on Government’s investment in roads is available here
• Further information on the roll out of superfast broadband is available here and more information on the mobile coverage deal
• For research on the number of people working from home please go to Carnegie Trust UK, Future Directions in Rural Development, 2012
• For further information please contact Defra press office on 020 7238 6027.

Case studies

Ginsters

Based in Callington in Cornwall, Ginsters is the biggest selling pasty maker in the UK. With a heritage stretching almost fifty years, the baker has started selling its products online to customers in Hong Kong, taking its portfolio of pasties, sausage rolls, sandwiches, pasta bowls and other delicacies to an international market.

Headforwards

Headforwards is a software development company, creating and delivering custom software for the telecoms industry. One of the fastest growing start-ups in the South West, Headforwards works with coders from across the globe, all attracted by the Cornish lifestyle.

Herbert Engineering

Based in Marshland St James, Cambridgeshire, Herbert Engineering manufactures machinery for root crop vegetables such as potato grader. Its technology is now being used in international airports to handle luggage. This is a great example of a rural business being innovative and providing cutting-edge technology to some of the most advanced airports in the world.

Vinyl Clocks

Based in Shropshire, Vinyl Clocks is a rural business whose success relies on being well connected. Selling customised clocks across the country, over the last three years sales have come in from far and wide. With sales increasing by 400% over 3 years business owner Tim Stanger has created an online community, connecting with customers through a range of social media platforms and engaging with online bloggers. He can do all of this from his rural Shropshire location because of his broadband connection.

Mrs Temple’s Cheese

Based on the Norfolk coast, Mrs Temple’s Cheese produces fine cheese like Binham Blue and Wells Alpine. Achievements include high standards of animal welfare, fully traceable foodstuffs, and generation of sustainable energy for all processing on site. Products are available at local farmers’ markets, delicatessens and hostelries.

Completely Chilli

Based in Cambridgeshire, Completely Chilli is a chilli farm set up in 2006. A wide variety of chillies and peppers are grown which are then used to create a range of preserves. The business has received a Rural Development Programme England (RDPE) grant to expand this operation through converting a farm outbuilding into a kitchen facility. The new facility will allow the business to increase production of preserves and develop new product ranges.