Rural and Environment

This programme covers two key dimensions of the Regional Economic Strategy – rural and environment. Both of these themes also run throughout all other development programmes. While the two dimensions are separate, there are significant overlaps.

The reason for the rural element is threefold:

• Firstly, there has been long term economic underperformance in some rural areas of the region, which are defined as ‘lagging behind’
• Secondly, there are major opportunities in rural areas for other programmes to focus on improving employment, levels of business and productivity
• Thirdly, rural areas offer potential advantages in promoting North East England; for example, its quality of life, relatively low urban-rural travel times, etc.

The environmental element of the programme will be primarily guided by the Government’s Framework for Sustainable Consumption and Production. Activities are being developed which will act as the focus to put businesses on the path to good environmental practice and sustainable growth.

Many businesses in the region have poor resource use and energy efficiency when compared to the rest of England and Wales. This factor, combined with environmental legislation, must be addressed so that we can move towards reduced levels of carbon dioxide and a ‘low carbon’ economy.

The region has the potential to achieve net annual energy and efficiency savings of £106 million per annum, which translates into increased business profits of between 5% and 7%.