Rural Enterprise Growth – setting the scene - Roger Turner, Consultant in Rural Economies

Rural Enterprise GrowthPerception, Policy and Potential

Roger TurnerRural Economies Consultant

ERC 2014. Advocates for Rural Enterprise

ERC 2014. Advocates for Rural Enterprise

£211billion GVA

507,000 enterprises

2.9 million employees

In 2012 England’s rural areas contributed 19% of national output (GVA); 28% of registered Enterprises and 14% of Employees. Farming and Rural tourism provided £18 billion, or 8.5% of England’s GVA

England’s Rural Coin, 2010

www.royalmint.com and wikipedia

RURAL ENTERPRISES

‘Diamond’

ERC 2014. Advocates for Rural Enterprise

Image source: http://www.diamond.ac.uk/Home/About.html

The ‘Diamond’ spatial context “Oxfordshire is unusual in the South East of England in being significantly rural in

character, with relatively dispersed populations and a significant amount of agricultural and rural economic activity” Oxfordshire LEP’s European Structural and Investment Funds Growth Plan.

[49% of enterprises within Oxfordshire LEP’s area are in rural areas, including a majority in the Professional, Scientific and Technical sector. Rural employment is 174,000] https://www.gov.uk/government/statistical-data-sets/rural-statistics-local-level-data-sets

Harwell and 3 other Oxfordshire Business Parks in the Science Vale Enterprise Zone, were offered £74million Government funds under Oxford and Oxfordshire City Deal, signed at Harwell by Deputy PM in early February.

The Diamond’ and Harwell Business Park is in Area of Outstanding Natural Beauty and the Less Sparse Rural Village category of Government’s Rural Urban definition, yet not recognised in rural profile in Oxfordshire’s ESIF Growth Plan

ERC 2014. Advocates for Rural Enterprise

‘Rural’ in Oxfordshire LEP

“Particular issues for Oxfordshire’s rural areas where EU funds are relevant include: isolation of businesses, particularly SMEs, from markets, supply chains and sources of support

“The county’s rural and peri-urban areas are also home to a range of innovative institutions and businesses, all of which are candidates for support under the SIF’s business support and skills programmes. FAI farms for example ….combines innovation in research on agricultural techniques and methods alongside education and consultancy

“Strengths: Largest rural county in the South East, rural sector employing 8,900”“Agriculture & Rural workforce (8,900 including 3,900 in agri-food processing).”

Weaknesses: “Lack of coherent vision and voice for environment and rural sector and missed opportunities to innovate and contribute to wider economic development” Source: Oxfordshire LEP’s European Structural and Investment Funds Growth Plan

ERC 2014: Advocates for Rural Enterprise

Crystal Scientific (UK) Ltd

Crystal Scientific is the specialist manufacturer of x-ray reflection and diffraction optics for synchrotron applications. Started by Dr. Simon Cockerton in 1995, Crystal Scientific has supplied synchrotrons across the world. Since 2008 they have been located in purpose-built manufacturing premises, in rural Northumberland. Their location minimises vibration, a key requirement for their high precision work http://www.crystal-scientific.com/index.html

ERC 2014: Advocates for Rural Enterprise

‘Rural’ in North East LEP

“The rural and coastal areas not only add to the overall tourism offer but also make major economic contributions based on land management and natural resources, as well as providing centres of manufacturing excellence common across the area.

“.…..the quality of the environment and rural areas of the North East LEP underpin valuable biodiversity, and offer growth potential through tourism, agriculture and land management and related sectors.

“EAFRD funds will offer a further source of investment for rural areas of the North East LEP area. Once further guidance and allocations are issued, we will ensure that programmes align to allow rural areas to benefit as fully as possible from all Funding streams, including scope to address challenges and opportunities distinct to these localities.” Source: North East LEP Draft European Structural and Investment Funds Growth Plan

ERC 2014. Advocates for Rural Enterprise

‘Rural’ from EU to local areas Aims of Common Agricultural Policy (CAP) include: “the balanced territorial development of rural

areas throughout the EU by empowering people in local areas, building capacity and improving local conditions and links between rural and urban areas”

Europe 2020 for Smart, Sustainable and Inclusive Growth include planning regional Resilience against Global challenges: such as climate change and energy security; and

Roles of all types of areas – urban, rural, coastal, areas with low populations or physical disadvantages - have to be shown in national, regional and local strategies for growth.

Thus, the EU-UK Partnership Contract for management of EU Structural and Investment Funds should show these roles for all types of areas, as should LEPs ESIF Strategies.

Defra expect future Leader Programmes to align with priorities in LEP ESIF Strategies

EU consider CLLD an “ideal methodology for building linkages between urban, rural and fisheries areas.” (My italics)

ERC 2014. Advocates for Rural Enterprise

‘Rural’ in UK Growth Policies and Plans Rebalancing our economy:

“We have set out a series of clear, transparent benchmarks for our economy ….to creating more balanced growth, getting Britain working and ensuring our whole country shares in

rising prosperity.” Prime Minister’s first major speech on economy, May 2010.

“….all places must be empowered to find and secure the growth that is required to build a

sustainable and prosperous future.” The Plan for Growth. BIS. March 2010

Plan for Growth has 12 Cross-cutting themes, eg Access to Finance; Education and Skills; and Planning, and 11 sector themes including Retail, Professional and business services, Tourism, Advanced manufacturing……………..and Rural Economy

“We have made economic growth our top priority, and we want rural areas to contribute to and benefit from this growth.” and” In 2011 we undertook the Rural Economy Growth Review to ensure that rural needs and interests are firmly embedded in our overall growth strategy” Rural Statement, 2012. Defra 2012

‘Rural’ is visible in only 16 of 235 measures in Plan for Growth implementation update (BIS. March 2013) 12 of these are in Rural Economy Growth sector report

ERC 2014: Advocates for Rural Enterprise

Potential for rural enterprise growth LEPs have been provided with €6,174 mill. ERDF and ESF funds, as well as

€221mill. EAFRD funds

“…more details will need to be set out for rural development activities across all Funds, financial instruments and match funding.” and (reminded that) “…ERDF and ESF can be used in rural areas as well as EAFRD.”(Lttr. to LEP Chairs from Government’s ESI Funds Growth Programme Board for England . Nov, 2013)

Defra’s Rural Growth Network and micro-business support programmes will be evaluated and may be extended.

New LEADER programme has potential to cover rural England New businesses are being incubated in rural homes, former farm and estate

premises, and isolated business parks – need networking, next-step business premises, access to mainstream support programmes

Consider enterprises in supply chains of other growing enterprises Consider enterprises that harness diverse qualities of rural environment and society Interpret Rural Enterprise imaginatively. All types, sizes and ages of firms are here!

ERC 2014. Advocates for Rural Enterprise

Thank you for your attention

ERC 2014. Advocates for Rural Enterprise