Rural areas in England will gain £110m in local authority funding to support rural and farming businesses, the government has announced.
Eligible local authorities will receive the funding, which they can invest in initiatives such as farm diversification and projects to boost rural tourism, Defra said today (7 April).
The funding will also help people start up local businesses to spur on growth and create employment opportunities for rural areas, the department added.
According to the Country Land and Business Association (CLA), the rural economy is 19% less productive than the national average, but reducing this gap could add up to £43 billion to the economy.
The confirmed fund allocations are spread across the country, including over £5m for Cornwall and the Isles of Scilly, £3m for Cambridgeshire and Peterborough, and over £3 million for North of Tyne.
Over £2.5 million for West Yorkshire will be allocated, as well as £2.5 million for Shropshire and almost £1 million for Cheshire East.
Defra Secretary Thérèse Coffey said driving investment in rural areas was 'a vital part' of the government's vision for levelling up the country.
"The new Rural Prosperity Fund replaces the bureaucratic EU funding system - allowing us to work closely with local leaders to direct funding where it is most needed to close the rural productivity gap," she said.
“This confirmed spending will allow local authorities to deliver on their plans to level up businesses and communities in rural areas from today, in line with their residents’ priorities.”
The money will be spent on areas such as supporting agricultural businesses looking to expand their remit, and rural businesses looking to launch or grow their products and services.
It will also go toward projects seeking to improve community facilities such as green spaces, as well as growing local tourism economies.
Responding to the fund, CLA President Mark Tufnell said: “This funding is an important step in unlocking the vast potential of rural businesses, and will give start-ups as well as existing enterprises the support they need to grow.
“We strongly encourage Local Authorities to work closely with rural entrepreneurs to maximise the opportunities the Rural England Prosperity Fund presents."
