Rural ventures ‘could become silent victims’

Dec 16 2008 by Karen Dent, The Journal

FOUR out of five rural firms say the Government is not doing enough to help them cope with the credit crunch this Christmas.

The sector is at risk of becoming the silent victim of the economic downturn, according to the Federation of Small Businesses (FSB).

About six out of 10 rural businesses surveyed by the organisation said they were expecting a slower Christmas than last year and more than eight out of 10 said they felt no better placed to weather the economic storm after last month’s Pre-Budget Report.

The FSB has compiled a list of measures it believes would give rural firms a shot in the arm over Yuletide. They include free parking in all towns and villages during the Christmas shopping period, scrapping fuel duty rises planned for April 2009 and ensuring a substantial proportion of the £7bn made available by Government for small firms is actively promoted to rural-based businesses.

North East businessman and FSB national chairman John Wright said: “Rural businesses are as integral to the wellbeing of our economy as the turkey is to our festive dinner.

“These figures show that small businesses in rural Britain are the silent victims of the credit crunch. The FSB believes that the rural economy needs urgent short-term action to help it beat the squeeze, along with a real commitment to deal with the long-term problems that have plagued the rural economy for so long.

“If rural firms are not supported now, we could watch our markets, high streets, towns and villages become extinct.”