Recognising that small rural firms face a unique set of challenges and inequalities that will continue to stunt their growth unless governments intervene, the Federation of Small Businesses’ new UK-wide report, The Growth Belt: Supporting Rural Small Businesses, presents some new ideas on how rural businesses can be transformed into an 'economic growth-belt'.
For while rural businesses are struggling against a backdrop of mounting energy costs, staff and housing shortages, poor transport links, unreliable broadband and so on, their great diversity, ambition, dedication and professionalism shine out too. So, what should be done to help them unleash their full potentials?
Well, amongst other things our report recommends that the basic VAT taxable threshold is raised from £85,000 to £100,000 to encourage rather than discourage small-business growth. It hasn’t changed since 2017, despite soaring inflation. Reflecting the recent price drop, energy suppliers should allow vulnerable businesses who were obliged to enter into new contracts at the wholesale price peak in 2022 to renegotiate or ‘blend and extend’ them.
Reliable EV charging infrastructure must be in place by 2030, the UK Government should commit to a long-term fuel duty freeze and make the temporary 5p-per-litre cut permanent, and the needs of businesses using alternative fuels – where there’s no mains gas, for instance – should be mainstreamed in future energy policy development. Oh, and the Universal Service Obligation minimum requirements for broadband speeds should be updated to reflect current and future needs.
The quota-free extension of the Youth Mobility Scheme to EU countries would help the staffing crisis, and wouldn’t it be great if the Highlands & Islands was chosen to pilot the remote visa scheme recommended by the Migratory Advisory Committee?
Finally, practical action is needed to curb the growing feeling that the needs and wants of rural businesses, and especially those in the Highlands, Islands and Argyll, are not being listened to, let alone taken on board by Central Belt-based politicians and policy-makers. In particular, to help avoid repeats of the current controversies surrounding new and proposed Scottish Government regulations like the Deposit & Return Scheme, Short-term Lets Licensing, alcohol advertising restrictions and Highly Protected Marine Areas, rural proofing must be introduced to ensure that the needs of rural businesses and communities are taken into account when new proposals are being designed and implemented.