Boosting Rural Economies: Challenges, Opportunities & Government Support

The critical debate surrounding Government support for businesses in rural areas, which are vital to the UK economy. Speakers highlight key challenges including poor public transport, inadequate digital connectivity, high energy costs, and workforce recruitment difficulties. Opportunities in agriscience and tourism are also discussed. Calls are made for long-term funding, devolution of powers, business rates reform, and a comprehensive rural strategy. Concerns about recent tax policies, like the family farm tax and National Insurance increases, are also raised.

Key Takeaways:

• Rural businesses are vital: contributing £240 billion annually, making up a quarter of UK businesses.
• Major challenges: poor transport (buses, roads), inadequate digital connectivity (broadband, mobile), high energy costs, and workforce issues (attracting, training, retaining staff).
• Demand for long-term government funding, local accountability, and a clear rural strategy.
• Proposed solutions: infrastructure upgrades, business rates reform, and expanded banking hubs.
• Opportunities: agriscience, renewable energy benefits, tourism.
• Concerns: National Insurance hikes, family farm tax, and changes to agricultural property relief.

Definitions:

• Rural Economy: Businesses and economic activities primarily located in non-urban areas.
• Devolution: The transfer of central government powers to local authorities for tailored decision-making.
• Business Rates: A tax on non-domestic properties; calls for reform to a land-value levy were made.

Discussion and Reflection Question: How can a holistic national strategy integrate improvements in digital connectivity, public transport, and workforce development to ensure the long-term sustainability and growth of rural businesses?

Source: Businesses in Rural Areas
Volume 769: debated on Wednesday 18 June 2025

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No outside chatter: source material only taken from Hansard and the Parliament UK website.

Contains Parliamentary information repurposed under the Open Parliament Licence v3.0....