Rural prosperity fund of £110m open to bids from hospitality operators

Rural pubs, wedding venues and farms will have the opportunity to bid for a cut of a £110m fund created to support countryside communities in England.

The Rural England Prosperity Fund will be released to projects that will boost productivity and create jobs in rural locations, such as establishing wedding or events venues, accommodation for tourism or expanding pub operations.

The scheme, announced by the Department for Environment, Food and Rural Affairs (Defra) and the Department for Levelling Up, Housing and Communities last weekend, will be aimed at capital projects for small businesses and community infrastructure.

It will be administered by eligible local authorities and it is anticipated that funds will be distributed to successful applicants between April 2023 and March 2025.

Secretary of state for levelling up, Greg Clark MP said: “This major investment in rural businesses will help us boost the countryside economy and close the rural productivity gap.

"It’s our mission to spread opportunity across the whole of the UK and this funding will help us do just that."

A government report states that productivity in rural areas has fell from 90% of the national average in 2001 to 83% in 2019.

Lord Benyon, minister for rural affairs, added: “We are addressing the rural productivity gap, levelling-up opportunities and outcomes, and looking after the rural areas and countryside that so many of us are proud to call home.

“The Rural England Prosperity Fund worth up to £110 million recognises the unique strengths and challenges of rural communities, and will support them to invest and grow their economies in line with local priorities.”

Grants will not be made available to support businesses’ existing running costs.