Plunkett UK has expressed deep disappointment that today’s Budget fails to deliver meaningful support for rural community businesses – despite the Government’s own commitment to grow the co-operative sector.
In advance of today’s Budget, the charity submitted a clear and constructive proposal to the Chancellor setting out what is needed to grow the rural community business sector.
This included targeted financial support to help new community businesses open and to enable existing ones to survive, alongside a fairer and more consistent approach to business rates.
Plunkett’s position remains that businesses trading for social and community benefit should be treated consistently across the UK and, ideally, be exempt from business rates altogether.
“It is deeply disappointing that today’s Budget announcement contains no measures that materially benefit rural community businesses – particularly given the Government’s manifesto commitment to double the size of the co-operative sector.
“This disconnect is frustrating, especially considering the positive dialogue we have had with officials across government. While those officials have demonstrated a genuine understanding of, and support for, our work, that support does not appear to have translated into decisions within the Treasury or No.10.”
James Alcock, Chief Executive, Plunkett UK
Speaking out on behalf of rural communities – James Alcock, Plunkett Chief Executive, with Robbie Moore, DEFRA Shadow Minister, at the launch of our recent research report
Existing policy changes have already placed significant pressure on the rural community business sector. The Government’s recent increases to National Insurance have put at risk the very community businesses Plunkett has worked tirelessly to establish.
Many are now facing reduced staffing or cuts to essential services – the very activities that deliver their social impact. This stands in stark contrast to the Government’s stated ambitions for inclusive economic growth, community empowerment, pride in place, and expansion of the co-operative economy.
James adds:
“We will now examine the proposed reforms to business rates in detail to understand whether they offer any improvement for our members. However, many community businesses already qualify for Rural Rate Relief or Small Business Rate Relief. What we had hoped to see today was a commitment to consistent rate relief – or full exemption – for all social-impact businesses, wherever they are based.”
Plunkett UK does, however, welcome the Government’s call for evidence on how it can better support co-operatives to grow.
James says:
“We have already been invited to contribute and stand ready to share detailed proposals drawn from our members’ experiences.
“We are confident that, with the right support, it is entirely achievable to double the number of community businesses being created annually within the next decade.
“We remain committed to working constructively with Government to ensure community businesses – especially in rural areas – are equipped not only to survive, but to thrive.”
Read more and get in touch
We will use the research findings in our recently-published Community Ownership Report to continue to advocate for change and better funding, and to ensure the voice of our members, is heard.
If you have any questions or comments arising from the report that can further strengthen our policy discussions, please do get in touch with us.
