Breadcrumbs
First local finance initiative for rural areas. Wessex Reinvestment Trust launched – 10 September 2002
The first community based finance initiative to help financially disadvantaged people living in rural England - the Wessex Reinvestment Trust - is launched today (Tuesday 10 September) to pilot an approach that tackles these problems. The Trust’s creation is based on Countryside Agency research, undertaken by the University of Salford, which tailors community-based finance initiatives so they can meet the needs of people living in the countryside. The Trust’s central funding will come from the Countryside Agency and Lloyds TSB with regional and local bodies being invited to contribute.
Speaking at the Trust’s launch in Exeter today Countryside Agency deputy chair, Pam Warhurst said: “People in the countryside on low incomes and small rural enterprises face a number of difficulties in raising finance and getting access to financial services. This is often made worse because of the distance from service centres and the lack of banks, building societies and other financial institutions. Access to affordable finance is vital for rural businesses and people, particularly since many areas suffer from low wages and higher property prices.
“Today we are launching the business plan for a pioneering rural financial institution - the Wessex Reinvestment Trust. It will work across Devon, Somerset and Dorset with the aim of raising funds to support rural communities and enterprises whose needs would not be met through mainstream financial sources. Through the trust local people and businesses will have access to a local lending/borrowing institute based on collateral offered by members of the community, which is used to finance loans for local projects, such as the creation of low cost housing or local business space.”
Geron Walker at Lloyds TSB said: “Wessex Reinvestment Trust offers a new, innovative approach to rural regeneration, aiming to provide ‘joined up’ solutions to housing, workplace and finance needs. Local organisations working in partnership with national organisations, such as banks, give a huge opportunity to maximise support and expertise whilst leaving ownership and control where it belongs - in those communities.”
Following today’s launch of the business plan for the Wessex Reinvestment Trust national and local partners will come together to define and develop the range of products the Trust will offer. The Wessex Reinvestment Trust aims to distribute a minimum of £200,000 in loans in its initial two year pilot and will provide:
- loans of between £500 - £20,000 to support small business and social enterprise start-ups and expansion;
- typically loans of around £5,000 for low to moderate income homeowners to tackle disrepair;
- access to property and workspace by facilitating pioneering land and property transactions, transforming redundant land and property into affordable housing and workspace for the benefit of the wider community.
The Wessex Reinvestment Trust Market Feasibility Study and Outline Business Plan, published by the Countryside Agency, Lloyds TSB, the University of Salford and the Housing Corporation, is available from Jennifer Powell, Community Finance Solutions, Academic Enterprise, Room 505, Humphrey Booth House, University of Salford, Salford, M5 4WT tel 0161 295 4454 fax 0161 295 2835 j.e.powell@salford.ac.uk, priced £20.
Notes to editors:
For further information please contact:
- Countryside Agency press office on 020 7340 2909/7
- Emma Slater in the Lloyds TSB press office on 020 7356 2098
The Countryside Agency is responsible for advising government and taking action on issues affecting the social, economic and environmental well being of the English countryside.
