Rural Development Update

The Government response to the Taylor Review has been published recently and this recommends that the local planning authorities (LPA’s), in our case the new Cornwall Council, should encourage responsible development in rural areas and the government says that it will shortly be arranging for the relevant Planning Policy Statement’s (PPS) to be amended.

Whilst the LPA’s are legally obliged to pay attention to the PPS’ (which supplement planning law) when deciding planning applications they are not always adhered to, with the result that applicants are often forced to appeal. It is hoped that the new unitary authority will streamline the local planning system and encourage LPA’s to respect central government’s recommendations.

How is such rural development to be funded?

Readers might recall Objective One funding, which provided European Union funding packages to those parts of Europe where the average income per head was 75% or less when compared with the European average. This scheme ran from 2000 to 2006 and was replaced in 2007 by the Convergence Programme. The purpose of Convergence Funding is to speed up the economic development of Cornwall.

The two main funds from which convergence funding can be drawn are protected by EU Regulations which state that any funds provided are required to be used to encourage:

1. research and development, innovation and entrepreneurship, including links between Higher Education and small to medium-sized enterprises; environmental, energy and risk protection; and
2. information society and educational investments including investing in human capital, tackling unemployment and promoting worker adaptability.

There are two main structural funds which will be available to deal with development generally but rural development in the UK also benefits from a fund of its own (the European Agricultural Fund for Rural Development (EAFRD)) but only to fund projects within the new Rural Development Programme for England (RDPE).

Cornwall has "reserved" funding under the RDPE to support its rural development activities. The RDPE is designed to improve the economic, social and environmental conditions in rural areas of England and bases itself on four "priority-axes"

Axis 1: Farming/Forestry Competitiveness;
Axis 2: Environmental Land Management
             (agri-environment schemes);
Axis 3: Quality of life and diversification in rural areas;
Axis 4: ‘Leader’ programme assisting rural communities to improve quality of life and economic prosperity.

DEFRA is planning to run Axis 2 at a national level in England, managed by Natural England. Axis 1, 3 and 4 are expected to be managed regionally by the Regional Development Agencies.

The RDPE has a budget of £3.9 billion for the 2007-2013 period.  This is more than double the budget available which had been available under Objective One funding. £3.3 billion of the total budget will be allocated to agri-environment and other land management schemes.  This funding will help farmers to manage the land more sustainably and deliver important outcomes on biodiversity, landscape and access, water quality and climate change.

The remaining £600 million will be made available to make agriculture and forestry more competitive and sustainable and to enhance opportunity in rural areas.

Environment Secretary Hilary Benn has announced on the 30th of April that Regional Development Agencies will be allowed to raise the funding limit on a range of grants from 50 per cent to 100 per cent funding for projects under the RDPE, to assist rural businesses through the economic downturn.
The changes will benefit farmers who want to diversify into non-agricultural businesses and small rural enterprises which want to start up or expand.

Defra has said that it is seeking the approval of the European Commission to these changes so they can be implemented as soon as possible.

For more infromation on this subject please call Christopher Stephens on 01872 247282 or send him an email.