SMALL rural businesses need urgent help in Wednesday’s Budget if they are to survive the recession intact, according to the Federation of Small Businesses (FSB).

A poll by the organisation revealed that more than eight in 10 of its rural members in the region were suffering from rising costs and almost half (46%) reported a fall in trade.

One in three of the businesses, all based in the countryside and including many serving the tourism industry, said the coming six months would be extremely challenging.

FSB regional chairman Colin Stratton said: “Rural businesses have been quietly suffering during these testing times just as much as big, city businesses – but behind the dramatic headlines of big business failures.

“These figures prove that the collapse of one small firm in a small town or village can have a devastating impact on the entire community. Over 40% of all businesses surveyed depend on one or more sole food shop, general store, petrol station, post office or pub in their local community.”

The organisation, which surveyed around 300 businesses in its poll, is calling on Chancellor Alistair Darling to top up the non-domestic rates pool so local authorities can give 100% rate relief to essential small rural enterprises during the recession.

Rates bills are the third largest expenditure for small business. The FSB wants the Government to make rate relief automatic because many firms do not realise they are entitled to claim it. Currently, around £400m in rate relief remains unclaimed every year.

Mr Stratton said: “The rural businesses are the lifeblood of the local community and need help now. The Government must take action.”