Breadcrumbs
THE PRE-BUDGET STATEMENT: THE RURAL ANGLE 27 November 2001
"We do welcome the measures to help small businesses thrive," said Ewen Cameron, Countryside Agency chairman and rural advocate. "Many firms, struggling in the wake of foot and mouth disease, will benefit. Small businesses are, after all, the backbone of the rural economy.
"On the other hand, there are three million people in poverty in the countryside . Yet the stamp duty incentives to improve deprived neighbourhoods seem set to benefit only urban people. The basis for picking up the 2,000 qualifying wards does not take sufficient account of rural deprivation factors.
"We also regret the complete lack of recognition of the role of government in delivering modern telecommunications infrastructure to rural areas. The Chancellor may have an ambition to make the UK the most 'connected economy' in the world. But he has given no sign of how our smaller towns and villages will get access to broad band technology."
The foot and mouth crisis severely affected a wide range of rural firms and highlighted the vulnerability of rural small businesses, beyond the traditional sectors of agriculture and tourism.
Rural firms face the additional challenges of distance, small local markets and a reduced infrastructure on top of the problems faced by all small businesses.
The Countryside Agency has welcomed the proposals on VAT simplification, capital gains tax, and the widening of the lower rate band for corporation tax, all of which should benefit small rural businesses. But it expressed disappointment that the proposed R&D tax credit will only be applicable to large companies of which there are relatively few in rural areas.
-ends-
The Countryside Agency is responsible for advising government and taking action on issues relating to the social, economic and environmental well-being of the English countryside.
