Budget offers short term solutions for rural problems

The Chancellor, Rt Hon Philip Hammond MP, has avoided any big moves in the last Budget before the UK leaves the EU in March 2019 and has instead focused on short term measures and funding commitments for the challenges faced in rural areas.

The Budget contained welcome news for small businesses with an announcement that premises with a rateable value of up to £51,000 will receive one third off their business rates for the next 2 years, and a commitment that rateable values will be reviewed in 2021. However, this is a long way short of the full review of business rates called for by the Countryside Alliance ahead of the Budget which is needed to address the growing unfairness of this tax and the financial burden it places on businesses with a large footprint such as garden centres and equestrian businesses.

The Chancellor acknowledged that it is "clearly not sustainable or fair" that businesses operating from digital platforms pay less or no tax compared to traditional business models and committed to establishing a UK digital services tax, but this will only apply to "tech giants" with a revenue of over £500 million per annum.

There was also confirmation that the increase in fuel duty will be postponed for the ninth year in a row and the Chancellor also resisted putting up taxes on beer, cider and spirits, although taxes on wine will increase.

The Countryside Alliance welcomes the £200 million from the National Productivity Investment Fund (NPIF) to deliver faster broadband for rural businesses, homes and schools. However, the Government has only committed funding from the NPIF until 2021 and if the Government are to deliver on the Future Telecoms Infrastructure Review, which has set out the changes that are needed to give the majority of the population access to 5G, connect 15 million premises to full-fibre broadband by 2025, and provide full-fibre coverage across all of the UK by 2033, then we need a clear funding strategy that is well beyond this 2021 funding commitment. Currently, the UK has only four percent full-fibre connections and if we continue building at the same rate it will be 24 years (2042) before we reach 100 percent full-fibre coverage.

Sarah Lee, Head of Policy, commented: "This budget has been a step in the right direction to support rural businesses and communities with commitments to a temporary slash in business rates and further funding to deliver much needed digital connectivity. However, we need a clear plan to ensure that rural communities are fully 'Brexit' proofed, as leaving the EU will only be an opportunity if we give rural businesses and communities the tools they need to compete in this global world."

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