My wish list for a Budget that delivers for rural Britain
For as long as I can remember, rural areas have been overlooked in national economic planning. It feels as though this Government, as well as previous governments, believe that funding and support given to urban areas will trickle down to rural areas. Deprivation in rural communities is often hidden but deeply entrenched. Limited access to transport, digital connectivity, and lack of affordable housing combine to restrict opportunity. Small rural businesses are uniquely placed to counter these challenges, but in recent years, these businesses have been hit time and again with obstacles set up on the national stage.
The “cost of doing business” crisis is hitting rural enterprises hard. Rising energy bills, spiralling food prices, and high taxation are squeezing margins. I would like to see a Budget that acts with urgency to ease these pressures. For example, Liberal Democrat colleagues and I are calling for VAT for hospitality and high street businesses to be slashed to 15% until 2027. This would provide immediate relief and support ailing high streets in market towns.
Those rural pubs, cafés, and shops that survived the pandemic, found a hefty increase in their Employer National Insurance contributions in the last year. Water and energy bills continue to creep up, with no end in sight. A Budget that delivered the removal of the renewables levy from bills, funded through a fair windfall tax on big banks, would cut household costs and reduce overheads for small businesses. This would be a practical step to ease the pressure facing businesses and the people who run them, so they do not just survive, but thrive.
Small businesses cannot prosper if they are cut off from access to staff, suppliers, and customers. Reliable transport links are essential, yet many rural communities across the country, face infrequent bus services and poor road maintenance. I would like to see the Budget commit to a Rural Transport Fund that ensures communities are connected and businesses can operate effectively. In my own constituency, a new train station in picturesque Corsham, would unlock millions in regional growth, widen the employment market for people living in the town, and be a huge boon for local tourism. Support for rail projects like this can only lead to positive outcomes.
Taxation must also be fair. Business rates are a heavy burden on small enterprises, particularly in rural towns and villages where footfall is lower than in urban centres. Changes to business rates is long overdue and I hope to see a Budget that will introduce a system that reflects the realities of rural trading, through targeted relief for businesses operating in areas of deprivation.
Opportunities for career progression in rural communities is too often limited by a lack of access to training and skills development. Small businesses are willing to invest in their workforce, but they need support. I want to see this Budget expand funding for apprenticeships and vocational training in rural areas, ensuring that young people can build careers close to home rather than feeling compelled to leave. This is not only about economic growth, but also about social cohesion. When young people leave rural communities in search of opportunity, the result is depopulation, ageing populations, and a downward economic spiral. Supporting small businesses to train and retain local talent is a direct investment in the future of these communities.
Rural businesses are often at the forefront of innovation, whether in agriculture, engineering, or renewable energy. Yet they face unique challenges in accessing research and development support. Rural businesses such as family farms are custodians of our natural environment. The budget should support farmers into work, help them to adopt green practices, not drive our farming communities to the brink.
Reeves’ Budget is an opportunity to demonstrate that rural communities are part of the conversation. This is not a call for special treatment - it is a call for equal treatment. If the Government is serious about levelling up, then it must start by levelling the playing field for rural areas. The Budget must be a statement of priorities. My priority is clear: support our rural small businesses, because they are the key to unlocking opportunity and tackling deprivation in the communities that need it most.
Sarah Gibson is the Liberal Democrat MP for Chippenham.
