Government support for businesses in rural areas

This debate will be held on the day of the Countryside Alliance Awards Champions Reception, where regional and home nation champions from across the UK will gather at the House of Lords to celebrate their success and learn which of them have been named as UK Champions. The Awards are the Countryside Alliance’s direct contribution to supporting rural businesses. 

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 Businesses in rural areas are substantially impacted by the rural premium: the added costs of living people face by virtue of living in a rural area. This is a key challenge to rural Britain and reflects the reality of our members’ and supporters’ daily lives.

On 25 February the Defra Secretary, Steve Reed MP, addressed the NFU Conference and made a range of commitments intended to support the food and farming sector and boost profitability.

At the last Budget the Chancellor announced a plan to introduce permanently lower business rates multipliers for high-street retail, hospitality and leisure properties from 2026-27, funded through a higher multiplier for the most valuable properties.

The Chancellor’s announcement that the availability and thresholds for Agricultural Property Relief and Business Property Relief would be restricted has, however, produced a furious reaction among farmers.

Rural tourism in England contributes over £13 billion per year to the economy, making up a substantial part of the overall £97 billion value of tourism in England. It makes a significant contribution to the rural economy, supporting village shops and services, jobs and businesses.

The Rural Premium and issues with local business viability underscores the need for a more joined-up approach within government to rural policy.