DESPITE political uncertainty and the credit crunch, confidence in the rural economy continues to grow, according to the latest quarterly survey carried out by the Country Land and Business Association.

The association’s Rural Economy Index (REI) shows that for the third quarter running, the number of businesses confident in the state of the rural economy is increasing - in this period by almost three quarters from 22% to 38%. At the same time the percentage of those with no confidence at all has fallen to zero.

The difference in perceptions of the rural and the general economy is dramatic and, say the rural economy experts, surely illustrates a point. Although there has been an improvement, 83% were not still very confident or had no confidence at all in the general economy.

Douglas Chalmers, Director CLA North sees the results as encouraging, and clear evidence of the enterprise and entrepreneurialism in rural areas.

He comments "The rural economy is, on the whole, faring a lot better than the general economy. This has been evident since we began our survey, and should now be recognised and encouraged by Government.

“Having said this, it is interesting that a large number of respondents are calling for an election to end the political uncertainty, as they are being affected by a lack of clear political direction in terms of economic policy.

“This, combined with poor cash flow, lack of credit and the restrictions of planning constraints are the main factors holding back the countryside.

“Even with these discouragements, rural enterprise is outperforming other sectors. If these were put right, imagine what we could do."

The CLA does, however, have one major worry about the future expansion of small, eco-friendly businesses based in the countryside. The lack of fast broadband Internet connections – caused mainly by old and often outdated BT telephone lines and exchanges – threatens to “strangle” future development, it claims.

• The full details of the REI survey can be seen at www.cla.org.uk/News