Commentary on the rural issues raised in the pre-Budget report.

Forum Response: Countryside Agency

Ewen Cameron, chairman of the Countryside Agency, told ePolitix.com: "We do welcome the measures to help small businesses thrive and many firms, struggling in the wake of foot and mouth disease, will benefit. Small businesses are, after all, the backbone of the rural economy.

"On the other hand, there are three million people in poverty in the countryside. Yet the stamp duty incentives to improve deprived neighbourhoods seem set to benefit only urban people. The basis for picking up the 2000 qualifying wards does not take sufficient account of rural deprivation factors.

"We also regret the complete lack of recognition of the role of government in delivering modern telecommunications infrastructure to rural areas. The chancellor may have an ambition to make the UK the most connected economy in the world. But he has given no sign of how our smaller towns and villages will get access to broad band technology.

"The foot and mouth crisis severely affected a wide range of rural firms and highlighted the vulnerability of rural small businesses, beyond the traditional sectors of agriculture and tourism. Rural firms face the additional challenges of distance, small local markets and a reduced infrastructure on top of the problems faced by all small businesses.

"We welcome the proposals on VAT simplification, capital gains tax, and the widening of the lower rate band for corporation tax, all of which should benefit small rural businesses. But we are disappointed that the proposed R and D tax credit will only be applicable to large companies of which there are relatively few in rural areas."