COMMISSION FOR RURAL
COMMUNITIES News Release (CRC 7/08) issued by The Government News
Network on 6 June 2008
Dr. Stuart
Burgess, the Government's Rural Advocate and Chairman of the
Commission for Rural Communities (CRC) has handed the Prime
Minister his report on releasing the potential of England's
rural economies. The report follows a request from the Prime
Minister to the Rural Advocate to investigate ways in which rural
economies might be strengthened in the wake of flooding and foot
and mouth disease incidents in 2007.
Speaking about his report Dr. Burgess said "In my visits to
rural areas I am constantly reminded how enterprising rural people
are and what diversity of successful firms and resilient
communities we have. My report records their economic strengths
and the substantial contribution they already make to the
nation's economic performance. However, we also know there
is scope for significant improvement, and for some communities
this will only come from better support. I was delighted,
therefore, to be asked by the Prime Minster to advise him on ways
in which the full potential of rural economies can be harnessed.
"Rural areas host around 30 per cent of England's
businesses. In 2005 these earned at least £325 billion. However, a
similar proportion of firms located throughout England, not just
in our villages and rural towns, earned higher levels of turnover,
showing us that rural economies have a further potential for
growth. My report suggests this unfulfilled potential from rural
firms might be around £236 to £347 billion per annum. By lifting
the performance, especially of medium and larger firms in rural
areas, by attracting more investment, by strengthening the
capacity to innovate, they could perhaps double their economic
contribution; helping reduce worklessness and poverty in rural
areas, close the persistent gap between rural and urban wages and
make more rural communities resilient against future economic and
environmental shocks.
"My report sets out a package of practical proposals for
coordinating government activity to improve areas of support for
and development of people and enterprises in the rural business
sector in order for this potential to be realised:
* the creation of a Rural Finance Forum to examine and overcome
the causes of lower capital investment, poorer access to finance,
and lower funding for rural economic initiatives;
* the creation of a Rural Innovation Initiative to address the
special challenges and opportunities in sparse or remote rural areas;
* development of new forms of brokerage, networks and clusters to
improve access to employee and business support programmes and
share good practice; and
* a new compact between government, insurance and rural
industries to improve response to shocks caused by disease and bad
weather and develop new insurance products.
"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.
This is why I have also recommended that the government convenes a
national summit and sponsors a series of regional summits to focus
attention and activity of government and its agencies on releasing
the potential of rural economies.
"I now look forward to government - nationally, regionally
and locally - being inspired to seize this compelling opportunity
and focus coordinated efforts on the needs of rural entrepreneurs,
businesses, employees and residents, not just for the benefit of
rural England but the entire nation."
In Dr. Burgess' report a number of examples of outstanding
rural business are highlighted - such as the village of Broughton
in Yorkshire which has won recognition for transforming a
declining agricultural community into a beacon of rural
enterprise. Rural England is also seeing a boom in home-working,
healthy rates of new business start-ups, high levels of
entrepreneurship (where levels among women are much higher than
the national average) and the growth of small firms in new
business activities.
ENDS
Notes for editors:
1. The report 'England's rural areas: steps to release
their economic potential. Advice from the Rural Advocate to the
Prime Minster', CRC 67, May 2008 can be found at:
http://www.ruralcommunities.gov.uk/files/crc67_englands_rural_areas.pdf
2. The Commission for Rural Communities (CRC) was established in
April 2005 and became an independent body on 1 October 2006,
following the enactment of the Natural England and Rural
Communities Act, 2006.
The role of the CRC is to provide well-informed, independent
advice to government and ensure that policies reflect the real
needs and circumstances of people living and working in rural
England. We give particular focus to tackling disadvantage and
economic under-performance.
We have three key functions:
* advocate: the voice for rural
people, business and communities;
* expert advisor: providing
evidence-based, objective advice to government and others;
and
* independent watchdog: monitoring and reporting on the
delivery of policies nationally, regionally and locally.
Further information about the CRC and its work can be found at:
http://www.ruralcommunities.gov.uk