Rural business in need of a rescue
The recession is taking a stronger hold on rural areas and the outlook is bleak for the next six months according to the head of a national organisation representing people living in the countryside.
Following his visit to the West Midlands last week Dr Stuart Burgess, chairman of the Commission for Rural Communities (CRC), called for government assistance to help people in rural communities survive the recession.
He said: “What this visit has shown us is that the effects of the economic downturn are taking a stronger hold on rural areas and we are seeing job losses across all sectors, businesses closing down and retail casualties on the streets of market towns and villages.
“While the scale of the problems might be small in comparison to urban towns, the ripple effect is just as powerful and, crucially, local people are missing out on important access to services which is leaving many isolated and vulnerable.”
“I don’t think the rural areas have seen the worst of things yet either and the next six months could be even more difficult. With this in mind, we need to make sure the Government directs similar levels of assistance to these villages and towns as it is doing in the urban economy.”
Dr Burgess visited Alcester in Warwickshire with British Chambers of Commerce director general David Frost to examine the effects of the recession as part of the Rural Experience visit.
The CRC chairman stressed that the Government must help people who are living on the interest from their savings and have been hit hard by falling rates.
“This is none more pertinent that in rural villages and communities where we have an ageing population. Many residents use the interest from their savings to live on and low interest rates mean a lot of them are struggling to get by,” he said.
“In turn, this is giving them less spending power and shops in the market towns and villages, who are dependent on this trade, are reporting falling sales.”
Fuel poverty payments should be increased and good access to broadband must be ensured in remote areas to boost businesses, Dr Burgess said.
“It would be nice to think the Government could show the same commitment to this as it did in bailing out the banks,” he said.
Over 20 leaders from national and regional government, enterprise agencies and specialists in rural affairs toured five different organisations to receive first hand insights into how the recession is affecting communities and businesses as part of the Rural Experience visit.
They heard from the Citizens Advice Bureau on massive rises in the number of people being made redundant, families suffering from repossessions and increases in debt across the Warwickshire, while businesses at Minerva Hill Innovation Centre talked about the difficulties they are facing in terms of reduced orders and escalating costs.
The visit also showcased the area’s entrepreneurial culture and looked at examples of companies defying the downturn.
One such example was Purity Brewing Company in Great Alne, which has developed redundant farm buildings to create a 20-barrel brew plant and visitor centre.
Under the stewardship of managing director Paul Halsey the business is enjoying healthy sales in its Mad Goose and UBU ales, not to mention winning the CAMRA Champion Beer of the West Midlands at the end of last year for its “Pure Gold” ale.
Dr Burgess said: “Times are tough, but it is not all doom and gloom. We still have exciting young businesses like Purity doing well in difficult times and if we can nurture this spirit our rural economy will emerge from the recession stronger than ever before.”
