£110m allocated for grants to boost England’s rural economy

A new £110m Rural England Prosperity Fund (REPF) has been announced by Defra, to support projects that will boost the rural economy and create jobs.

Farms looking to diversify could benefit from the funding, with grants likely to be available to help convert farm buildings to other uses, including visitor accommodation or events spaces.

Other eligible projects will include ones that support rural communities, such as investment for establishing digital infrastructure hubs at village halls, pubs and post offices and the creation of new footpaths and cycle paths.

See also: New grants this year for rural communities and businesses

REPF funding, which is effectively a replacement for the old Leader and Growth Programme schemes, will be available from April 2023 to March 2025 and will be delivered by local authorities.

The REPF is a top-up to the £2.6bn UK Shared Prosperity Fund (UKSPF), which aims to support productivity and prosperity in the parts of the country that need it most.

Additional investment to support rural areas will also be available under the UKSPF.

Rural affairs minister Lord Benyon said the new rural fund would help to address the rural productivity gap and help to level up opportunities in the countryside.

Productivity gap

The announcement comes as the government publishes a Delivering for Rural England report, which concludes that while progress has been made in some areas – such as improving digital connectivity – more needs to be done.

The report sets out how the government is working to close the productivity gap for rural areas, which has fallen from 90% of the England average in 2001 to 83% in 2019.

Mark Tufnell, CLA president, said the government had taken its first steps towards delivering a plan that would create economic growth in the countryside.

“Finally, the UK government is showing some ambition for the countryside,” he said. 

“Improving productivity in the rural economy could add up to £43bn in GVA [gross value added] – so the £110m fund will be money well spent.”

Minette Batters, NFU president, agreed that the new funding would help the development and growth of rural businesses.

“It’s also promising that the government is looking at its levelling-up goals through a rural lens and training civil servants on rural proofing,” she said.

“This will help ensure levelling-up policies work for those living and working in rural areas, in turn, enabling rural communities to deliver even more when it comes to producing climate-friendly food, providing greater access to the iconic great British countryside and contributing to the national economy.”