Darling urged to 'support rural firms' in forthcoming Budget

Chancellor Alistair Darling is being urged to include measures to support small rural businesses, in his forthcoming Budget.

According to a recent survey from the Federation of Small Businesses (FSB), more than 80% of rural firms have seen an increase in costs, and almost half a drop in trade, as a result of the recession.

Highlighting the essential role played by small firms in ensuring the survival of village communities, the FSB has called for the introduction of a rural recession rate relief scheme, consisting of a 'top up' from the Treasury of the non domestic rates pool, allowing local authorities to give 100% rate relief to small rural businesses.

The FSB is also calling for business rate relief to be made automatic in England. Such a scheme is already in place in Wales, and is due to be introduced in Northern Ireland, while businesses in Scotland can benefit from the small business bonus scheme.

Linda Walton, FSB Rural Affairs Chairman, said, 'Rural businesses have been quietly suffering during these testing times just as much as big, city businesses – but behind the dramatic headlines of big business failures'.