Poor transport and high house prices stifle rural enterprise

The first blueprint of its kind to preserve the Harrogate district's economy has identified a series of key issues which need to be addressed to help drive forward existing businesses and attract more investment.

The district's under-pressure transport network has been identified as one of the biggest problems, and a long-running campaign to boost rail services to Harrogate is being intensified.

But one of the most worrying issues which has been identified in the study is the growing economic divisions between Harrogate itself and the district's market towns, including Boroughbridge, Pateley Bridge and Knaresborough.

The report compiled by Harrogate Council's economic development unit has claimed that the market towns' economies are "lagging behind" the spa town. Senior councillors admitted yesterday that a strategy needs to be evolved to ensure that there is a more even spread of enterprise throughout the district. Council cabinet member for planning, transport and economic development Coun Don MacKenzie, said: "We are extremely mindful that we need to make the whole of the Harrogate district an excellent place to start and grow a business.

"This economic development strategy is such an important document as it pinpoints the areas which we need to focus on.

"There are obviously issues which need to be addressed, and the council is committed to finding ways to resolve these issues."

Talks have been held between the council and the rail industry in the last fortnight in an attempt to boost links to Harrogate, which has just one train to London each weekday – but no return service. The Harrogate Chamber of Trade and Commerce and Harrogate and Knaresborough's MP, Andrew Jones, have also been involved in the discussions. The Leeds City Region is seen as vital to allow the Harrogate district's economy to develop, especially to attract the next generation of entrepreneurs to preserve the bedrock of the economy.

Official figures have revealed that there are 9,000 business across the district which are responsible for about 87,000 jobs – although the vast majority employ fewer than 10 people.

However, the economic development strategy noted that the Harrogate district does not have a higher education institution, and hugely expensive property prices in the area are often an insurmountable problem.

Average house prices in the district are more than 238,000, compared to the national average of 206,000.

Concerns have been expressed over a "brain drain" of young entrepreneurs with the loss of often highly-trained graduates who grew up in the Harrogate area heading to other parts of the country to pursue careers.

While more than a third of the Harrogate district's population are educated to degree level, there has been an underlying trend for those aged between 18 to 29 to migrate to major towns and cities elsewhere.

The study pinpointed the importance of Harrogate's important conferencing industry, as business tourism attracts more than 350,000 visitors and 160m every year.

Council leader Mike Gardner claimed that efforts are under way to attract more companies involved in the finance sector and burgeoning green technology industries. He has scheduled meetings with prominent businesses in both Leeds and York.

A draft report for the economic development strategy for the Harrogate district will be considered by the borough council's overview and scrutiny commission on Monday.