Stimulating economic growth in rural areas

Issue

Economic growth is a top priority. We want rural areas to contribute to and benefit from this growth, even though they face particular challenges.

We’ve taken action to improve competitiveness and skills, invest in rural tourism and support micro-enterprises.

Actions

Rural Development Programme for England

We are committed to supporting rural communities by protecting our environment, growing the rural economy and creating more jobs. Our Rural Development Programme, part of the Common Agricultural Policy, will invest £3.5 billion between 2014 to 2020. Over £3 billion is for the environment and nearly £500 million will help grow farming, food and the rural economy.

Rural broadband and mobile infrastructure

We’re building a broadband and mobile network to help the rural economy. We’re doing this through the £780 million Superfast Rollout Programme (which is UK-wide) to deliver a transformation in broadband.

We’re also improving mobile coverage in areas where it is poor or non-existent through the £150 million Mobile Infrastructure Project (which is UK-wide).

Rural Growth Network pilots

We’re supporting 5 Rural Growth Networks pilots in rural areas, designed to help rural businesses overcome barriers to economic growth.

Rural Community Energy Fund

We’ve launched a fund to help rural businesses pay for the up-front costs of developing their own renewable energy schemes. The fund operates in two stages: providing small grants to test the viability of schemes at stage one, and larger loans to prepare fully costed business cases at stage two.

For more information and to download an application form, visit the WRAP website.

Rural tourism

We’ve launched a rural tourism fund aimed at attracting more people to rural areas and encouraging them to stay longer when they visit. We’ve invested £12 million in Visit England’s marketing campaigns such as the Holidays at Home are Great. We also invested £6 million in projects under the Rural Development Programme for England to make rural destinations more attractive and accessible. This includes support for rural communities in creating local path networks and for iconic landscapes in developing sustainable tourism.

Growth deals

Growth deals are a crucial part of the government’s long term economic plan to secure a better future and stronger economy. Growth deals will make around £12 billion available to Local Enterprise Partnerships to spend on their priorities from 2015 to 2021.

Food and drink exports action plan

The International Food and Drink Action Plan was launched in 2012 and refreshed in 2013. It sets out how we’ll work with rural businesses to encourage and help them to export the food and drink they produce. Exports are targeted to grow by £500m before October 2015, through promotion, trade development, opening new markets, unlocking barriers and simplifying support and trade procedures.

Background

Around 9.3 million people live in rural areas in England. There are around 490,000 businesses registered in rural areas - 26% of all registered businesses in England. Rural businesses are as diverse as those in urban areas.

Our provisional estimate is that predominantly rural areas in England contributed around £210 billion to the economy in 2013.

 

Case studies

Peak District National Park: an example of a flourishing business

Each year, there are nearly 90 million visitors to the English National Parks, contributing £4 billion to the parks and surrounding areas.

 

From:
Department for Environment, Food & Rural Affairs
The Rt Hon Elizabeth Truss MP
Natural England

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