Contribution of rural economies is ‘vital ingredient’ to Industrial Strategy

NICRE’s response, based on evidence and insight, together with inputs from its Rural Business Beacon network, also highlights: 

• All of the priority sectors identified have a substantial rural footprint.  
• Emerging sub-sectors and technological priorities should be reflective of devolved, locally and regionally-driven opportunities and specialisms and should particularly recognise the vital role that micro and small businesses play in their development, and which in rural areas account for higher share of employment in registered businesses.  
• Land-based and agri-food enterprises should be strongly recognised as quintessential foundational sectors which underpin extensive supply chains of firms and jobs across cities and towns, as well as rural communities. 
• Significant proportions of businesses in rural areas perceive local opportunities for business development, which is the critical starting point for entrepreneurial activities that can lead to growth and productivity improvements. However, these investment plans are held back by key barriers which include, in order of significance: difficulties in recruiting and retaining staff; lack of financial resources; lack of availability of affordable housing, lack of transport services and infrastructure; planning restrictions; inadequate broadband capacity; and lack of availability of business premises. 

• Recruitment and retention of staff is a chief constraint for rural and urban firms, with slightly more rural than urban businesses facing this challenge. There is a need to develop support and advice provision to help small and micro-businesses to tackle their recruitment challenges, including to develop different recruitment approaches, in-house training provision, and access to apprenticeships, as well as support for collaborative approaches and solutions between groups of firms. 
• Rural electrification is a key agenda for the Industrial Strategy to tackle. Rural areas are key sites of electricity generation, however ongoing research funded by Rural England and NICRE is highlighting challenges in rural areas in transitioning to new electric-based technologies, such as heat pumps and vehicle-charging points.  
• Many examples of cutting-edge science and technology clusters in rural settings across the country that are globally respected. 
• Embedding rural enterprise across local growth and investment plans, which are the cornerstone of a place-based approach, will be key to delivering the economic development goals of the many local and combined authorities that have a rural footprint. Lessons, for example, should be drawn from the experience of the North East Combined Authority and its development of an Environmental Stewardship, Coast and Rural Growth Investment Plan, and the establishment with Government of a ‘North East Coastal and Rural Taskforce’ focused on the natural environment and coastal and rural regeneration and growth.