The Federation of Small Businesses is expressing concern that rural businesses are becoming the silent victims of the credit crunch this Christmas.
 
Most rural businesses have seen trade fall this year with four out of five saying the Government isn’t helping them out of the downturn.
 
In a survey of almost 500 FSB members whose businesses are based in rural areas, nearly 60 per cent said they were expecting their Christmas trade to be down on this time last year.
 
Confidence in the future is also at a low with more than eight in ten small businesses in rural areas saying they do not feel better placed to weather the downturn following November’s Pre-Budget Report.
 
The FSB is calling for a series of measures to help small businesses in rural areas that could provide a much needed stimulus to local towns and villages across the country.
 
The FSB proposals include:

• Free parking for all towns and villages during the Christmas shopping period;
• Scrapping fuel duty rises planned for April 2009;
• Ensuring a substantial proportion of the £7 billion made available by Government for small firms is actively promoted to rural based businesses; and
• Real Commitment by Government to deal with long term problems such as lack of transport infrastructure and poor access to services.

FSB National Chairman, John Wright, said: 

“Rural businesses are as integral to the wellbeing of our economy as the turkey is to our festive dinner. These figures show that small businesses in rural Britain are the silent victims of the credit crunch.”
 
“The FSB believes that the rural economy needs urgent short term action to help it beat the squeeze along with a real commitment to deal with the long term problems that have plagued the rural economy for so long. If rural firms are not supported now, we could watch our markets, high streets, towns and villages become extinct.”