A LACK of transport and digital connectivity is holding back business growth in rural areas.
The Federation of Small Businesses (FSB) has welcomed a new study of rural needs in Cheshire and Warrington but says key infrastructure gaps must be addressed to help rural firms compete with their urban counterparts.
The study, on behalf of Enterprise Cheshire, is being delivered by Warrington-based consultancy Mickledore and Rose Regeneration and is funded by the Local Government Association as part of Cheshire and Warrington’s devolution programme.
Running until April 2026, the project aims to build an evidence base to support rural investment, influence devolution and economic development policy, and improve future outcomes for rural communities.
Phil McCabe, business and stakeholder engagement manager at the FSB, said: "It is essential that businesses in rural Cheshire are not left behind those in more urbanised areas so this project is very welcome.
"FSB’s own research highlights how important rural small firms are to their local economies and communities, driving productivity, diversity and ambition.
"However, decades of inadequate transport infrastructure development and unreliable digital connectivity continue to put our rural businesses at a disadvantage."
In its 2023 report, The Growth Belt, the FSB identified major infrastructure challenges facing rural firms, including poor transport links, unreliable broadband, and rising energy costs.
Rural roads and public transport were described as critical yet underdeveloped.
Mr McCabe said: "Rural transport is critical but it is currently a major barrier to business growth.
"Poorly-maintained roads and inadequate public transport in rural areas stifles productivity, tourism, consumer spending and profitability and the ability to attract talent.
"Unreliable internet connectivity is another huge issue.
"I spoke to a café owner in Sandbach, for example, who told me that, when the town’s two cash points are not working and the broadband is playing up there is literally no way customers can pay, so they move on.
"Our report, The Growth Belt, offers concrete, feasible solutions to narrow the productivity gap and unlock these rural small firms’ full potential – not just for now, but for generations to come."
The FSB report highlighted that 43 per cent of rural small businesses planned to grow, compared to 49 per cent in urban areas.
It also revealed that 37 per cent of rural firms had seen operating costs rise by more than 10 per cent, and 18 per cent had experienced energy costs that had at least tripled in a single year.
Broadband reliability was a concern for nearly a third of rural businesses, almost double the rate in urban areas.
Other barriers included public transport availability, fuel costs, and inadequate road infrastructure.
The FSB has called for updates to the Universal Service Obligation for internet speeds, a higher VAT threshold to encourage growth, and an increase in Small Business Rate Relief to take more firms out of rates entirely.
It has also recommended the rollout of more electric vehicle charging points in rural areas.
The group believes that with the right infrastructure improvements, rural businesses in Cheshire and Warrington could play a much larger role in driving regional growth and prosperity.
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