Can ’Growth Zones’ Help Boost Rural Areas?

English ’Rural Growth Networks’ and Scottish ’Enterprise Areas’ may be useful short term measures for stimulating the economy but there are also risks in taking such a ’lines on the map’ approach to encouraging growth.

This is the message from SAC’s Rural Policy Centre in response to today’s announcement by the Westminster Government that Rural Growth Networks ’ in which targeted business support is available to stimulate growth and create jobs ’ are to be established in England. Similar Enterprise Areas are expected to be established in Scotland soon, following a commitment made in the Scottish Government’s 2011 Economic Strategy.

Rural Growth Networks and Enterprise Areas are examined in two new RPC briefings published today in response to today’s announcement.

Dr Jane Atterton of the SAC Rural Policy Centre said: ’This announcement is positive as it recognises the potential contribution of rural areas to national and regional growth. It may help tackle some of the particular challenges facing rural businesses, for example by providing premises for expansion and improving infrastructure, including broadband’.

’There is a risk, however, that by designating Rural Growth Networks, people and businesses may simply be sucked into them from elsewhere, resulting in no gain overall. It is also vital that the Networks are large enough geographically to recognise the breadth and dispersed nature of rural economic activity’.

’The Scottish Government has made a similar commitment in its Economic Strategy to designate four Enterprise Areas. It has stated explicitly that it wishes to share the benefits of growth by encouraging economic activity and investment across all of Scotland’s communities, but it is important that these Enterprise Areas do not disadvantage rural areas by drawing investment away from them.’

Dr Atterton added that models that are used in urban areas would also need to be tailored to rural circumstances for them to work. They should reflect the differing characteristics, challenges and opportunities facing rural businesses.

The new Rural Policy Centre briefings outline recent developments in rural policy in England and Scotland, in relation to a range of issues, including planning, rural community empowerment, improving rural infrastructure and rural economies.