'Broadband deserts' causing small business closures in rural areas

04/03/2010

A lack of high speed broadband and adequate mobile phone coverage is causing many small businesses in rural areas to close, it has been revealed.

According to a study by Stuart Burgess, the government's rural advocate, just 1.5 per cent of rural villages and hamlets have cable broadband to enable a fast internet connection, compared to 60 per cent of urban areas.

The study also revealed that 12 per cent of town centre shops are currently vacant.

Further, the scarcity of jobs and housing is leading young people to abandon the countryside in droves, with estimates of 200,000 leaving every year.

Dr Burgess warned that unless the situation improves, rural communities will die out altogether as businesses such as post offices are unable to find customers or staff.

"Lack of high speed broadband and, in many rural areas, lack of mobile phone coverage, is a significant factor - affecting local economies and services," he added.

The Prince of Wales warned of rural businesses trapped in "broadband deserts" in the countryside at the end of last year

Switching suppliers can reduce business electricity bills by as much as 50 per cent, according to the experts at Make It Cheaper. Find out how you could get impartial, comprehensive and free information about overheads such as business electricity.

Posted by Richard Smart