local businesses are closing at an increasing rate. It can be daunting and confusing for people to make the transition from paid employment to claiming benefits.

Richard Welch - Craven District Council

England's rural businesses will be vital in helping the country through tough economic times, Environment Secretary Hilary Benn said yesterday (Thursday).

Mr Benn pledged government support for rural communities and businesses, which have diversified and grown in recent years - one in four of all businesses are now in rural areas.

Mr. Benn said he is determined to ensure that rural businesses benefit fully from government help during the economic downturn. He has already announced a £3.9billion investment plan for rural development in England, including £600million to support economic and social investment.

He will be bringing together the Commission for Rural Communities and the Regional Development Agencies to look at how the recession is affecting rural areas and whether additional help might be needed.

Publishing a government response to a report by the Rural Advocate, Mr. Benn commented:¨Rural businesses play a vital role in our economy, and they will be even more important in future.

"Although they are rural in location, they are not local in their reach. Rural businesses are more likely to sell to national and export to international markets than their urban counterparts. Rural areas are home to around one million businesses, a quarter of England's total, employing more than 5.5million people and with a combined turnover of more than £300billion a year. There are more businesses for every 10,000 people in rural areas than there are in urban areas.

"The recession is making life hard for many communities and businesses. That's just as true of rural communities as it is of our towns and cities. The government's job is to continue to do what we can to help - on bank lending, on support to businesses, and assistance for those who lose their jobs or who are worried about losing their homes and what the future holds.

"I will do everything in my power to ensure that the rural economy is at the heart of the decisions we take in government as we steer a course through the recession - and that rural businesses are able to benefit fully from the help that government is making available.

"So today I am announcing that I will call together the Rural Advocate Stuart Burgess, the chairs of the RDAs and others to look at the impact of the recession on the rural economy and see what further assistance we can give through the National Economic Council."

• New analysis by Defra and the Office of National Statistics shows that, far from being the poor relation, productivity in rural areas is on a par with all urban areas outside London.
• The government's response to the report by the Rural Advocate is online at www.defra.gov.uk/rural