The impact of the current economic and financial situation on businesses in the West Midlands Region - West Midlands Regional Committee Contents


Memorandum from Kington Town Council (WM 11)

THE EFFECTS OF PRESENT ECONOMIC AND FINANCIAL SITUATION ON A RURAL MARKET TOWN ON THE WELSH BORDER

  1.  Kington is situated in the far West of Herefordshire, two miles from the border with Wales and is a market town of 2,000 people with a hinterland of small rural communities on both sides of the border who focus on it for shopping, leisure, culture, health and education, etc.

  2.  Like all other market towns it has been hit hard by the present economic downturn and has empty shops along its diminishing High Street. The small industrial estate has one large manufacturer and a number of small businesses. Many people are employed by a large quarrying and road surfacing company five miles away in Powys. There is no further land identified in the Unitary Development Plan for future industrial use. Local companies have been moved to other sites nearer the conurbation for economic [mostly transport costs] reasons. One of these saw 150 local jobs going or being relocated miles away.

  This has a knock-on effect on local retailers and services, as has the cessation of many building developments in the area.

  3.  Many local businesses are sole traders, a small family business, and there is a very high level of self-employment. Many businesses are tourism related.

  4.  These businesses are unlikely to be involved with Business Link of the Chamber of Commerce, but some do belong to a small local Chamber of Trade. This lack of contact with the larger organisations, often because of the costs of membership and distance of travel for meetings means they miss out of many initiatives and information.

  5.  There seems a huge gulf between these small local businesses on whom so much depends in a sparse rural area, where the landbased businesses are also suffering in the downturn, and the Regional Development Agency or WM Task Force.

  6.  The abandonment of the successful Market Towns Initiative Programme has left small market towns and the communities which surround and depend upon them without a source of assistance to regenerate the areas and kickstart small initiatives which are needed in a time of recession.

  7.  There is a lack of understanding at regional level of the needs of rural areas, and we request that a part of the evidence session is set apart for looking specifically at the difficulties being encountered at present in rural areas, and rural market towns.

  8.  Many times in a rural area, the economic development needs the input of both the voluntary and community sectors, again there seems a reluctance to accept this at a regional level. Rural initiatives are often small requiring only a small amount of funding and support, but can give a vital lift to local projects. While there remain layers of agencies, organisations, and bureaucracy between a rural project and the funders, all taking a "slice of a fund or grant", it can mean a much reduced amount actually reaching the area.

  9.  Projects, initiatives that are for rural areas and small market towns like Kington need Rural Proofing at every stage, and the fact that it cost more to deliver services and run a business in a rural area needs to be taken into account.

  10.  Also for Kington itself there also needs to be a clear policy of Border Proofing as the communities along the Welsh Border are interdependent on each other, and there needs to be much more communication between the Welsh Development Agency and Advantage West Midlands. Recent comments from the Welsh Assembly have suggested they favour services to be kept within Wales.

  11.  We would ask for an opportunity for rural based companies to have an input to the Select Committee, that the effect of the Welsh Border, Welsh Assembly Policies, the problems of getting cross border co-operation of initiatives such as tourism which cross the border to work, the problems that small businesses who provide jobs in a rural area have with increased costs, are looked at as a matter of urgency.

  12.  We fully support the position taken by Herefordshire Council on many of these matters.

  13.  We see a new round of Market Town Initiative funding as vital, and for this to include the communities which surround a market town.

  14.  We ask that the role of the voluntary and community sectors in delivering many of these small local initiatives is appreciated and recognised as a vital part of economic regeneration for market towns and villages.

  15.  That the local Town Councils, the tier of Local Government which is at the grass roots of democracy, is fully informed and involved in all initiatives.





 
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