BUSINESS BRIEFING: Are challenges from Tain to Torridon the same as those in the Highland capital?

We all know that the lives of the folk living and working in Tain and Torridon are poles apart from their urban cousins in Inverness, and the situation is no different when it comes to the opportunities and challenges faced by businesses. But while these differences might be extreme in the Highlands, the disparity between rural and urban exists right across the UK.

Recognising that small rural firms face a unique set of challenges and inequalities that will continue to stunt their growth unless governments intervene, the Federation of Small Businesses’ new UK-wide report, The Growth Belt: Supporting Rural Small Businesses, https://www.fsb.org.uk/resource-report/the-growth-belt.html presents some new ideas on how rural businesses can be transformed into an 'economic growth-belt'.

For while rural businesses are struggling against a backdrop of mounting energy costs, staff shortages, poor transport links, unreliable broadband and so on, their great diversity, ambition, dedication and professionalism shine out too. So, what should be done to help them unleash their full potentials?

Well, amongst other things our report recommends that the basic VAT taxable threshold should be raised from £85,000 to £100,000 to encourage rather than discourage small-business growth. It hasn’t changed since 2017, despite soaring inflation. Reflecting the recent price drop, energy suppliers should allow vulnerable businesses who were obliged to enter into new contracts at the wholesale price peak in 2022 to renegotiate or ‘blend and extend’ them.

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Reliable EV charging infrastructure must be in place by 2030, the UK Government should commit to a long-term fuel duty freeze and make the temporary 5p-per-litre cut permanent, and the needs of businesses using alternative fuels – where there’s no mains gas, for instance – should be mainstreamed in future energy policy development. And the Universal Service Obligation minimum requirements for broadband speeds should be updated to reflect current and future needs.

Easing the staffing crisis, we’d like to see the quota-free extension of the Youth Mobility Scheme to EU countries, and wouldn’t it be great if the Highlands & Islands was chosen to pilot the remote visa scheme recommended by the Migratory Advisory Committee?

Finally, to help avoid repeats of the current controversies surrounding new and proposed Scottish Government regulations like DRS, short-term lets licensing, Highly Protected Marine Areas and alcohol advertising restrictions, rural proofing must be introduced to ensure that the needs of rural businesses and communities are taken into account when new proposals are being designed and implemented.

David Richardson is development manager Highlands and Islands for the Federation of Small Businesses.

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