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Fresh focus for Rural Priorities
03/08/2010
Changes are being made to the Scotland Rural Development Programme (SRDP) to ensure rural Scotland gets maximum benefit from the Programme.
This will increase the number of business development proposals financed through the SRDP and strengthen the role of local decision-making in community development projects.
Funding for community projects and development plans will now be considered under LEADER through Local Action Groups (LAGs). Some £13.3 million has been re-allocated to support this change.
The autumn funding awards for Rural Priorities will focus on agri-environment and forestry projects, and the Scottish Government is considering introducing a continuous assessment process for smaller scale Rural Priorities projects. Awards for Business Development applications submitted after August 2, 2010 will be capped at £250,000 per project.
Cabinet Secretary for Rural Affairs Richard Lochhead said:
"The Scotland Rural Development Programme is a big success story. In Rural Priorities alone over 4,000 projects worth around £338 million have been approved since the scheme was launched in 2008.
"Projects include widespread woodland creation to tackle climate change, farm business expansion creating rural jobs and species and habitat maintenance to safeguard Scotland's rich biodiversity. As well as funding forestry and agriculture, Rural Priorities has supported such diverse projects as swimming facilities in the Borders and an upgraded path network in Comrie, to a youth drop-in centre for the community of Sanday in the Northern Isles.
"This investment is stimulating the rural economy, benefitting the environment and supporting our rural communities.
"Recognising the importance of SRDP in supporting economic development, I brought forward £25 million under Rural Priorities to help lay the foundation for a sustainable rural Scotland. I have been delighted by the response, which is creating jobs and stimulating economic activity in rural areas during these challenging times.
"The time is now right to maximise the benefit of available funding, given that pressures on public spending mean there will be no more extra money for the Programme. The £250,000 ceiling on business development will help spread out that strand of the funding, giving more applicants a chance of success.
"I considered financing business development projects until the relevant budget was used up, without imposing a ceiling. However, this would have limited the number of businesses that could benefit from funding and deprived many young farmers and developing businesses of access to much-needed Rural Priorities support.
"I am continuing to examine the feasibility of introducing a continuous assessment process for smaller Rural Priorities projects from 2011, allowing small and medium scale businesses continuous access to funding. I will make a detailed announcement on this, and provide dates for future grant rounds, later this year.
"Strengthening local decision-making will empower communities to make the most of the funds available. To support the shift of funding for community facility projects to LEADER, I have increased the allocations to Local Action Groups by £13.3 million.
"With considerable funds still available through SRDP, this approach will ensure that together we maximise the benefits for rural Scotland until the Programme's end in 2013."