£415k pot for improving rural businesses 

17/07/25
From cowshed conversions to solar power transformations, rural businesses are receiving a helping hand to grow and diversify, thanks to a new grant from Babergh and Mid Suffolk District Councils.

The Rural Business Growth Fund has been set up to offer capital grants of up to £10,000 to projects which focus on sustainability, diversification and improving the local tourism and visitor economy.

In order to receive a grant, projects must meet one of the following priorities:

•    Investment in net zero infrastructure
•    Investment and diversification at small and medium-sized enterprises (SMEs)
•    Farm diversification outside of agriculture
•    Visitor economy business expansion

The total value of the fund stands at £415,519, with £178,922 available for businesses in Babergh and £236,597 in Mid Suffolk.

Grants of up to £15,000 can also be agreed for projects which strongly support the net zero infrastructure or farm diversification priorities.

Cllr Derek Davis, Babergh District Council cabinet member for sustainable economy, said:

“Whether it’s improving sustainability, expanding the range of a business or making adjustments to attract more visitors, the broad scope of this grant will allow many projects to get off the ground.

“I hope to see many of our excellent businesses and organisations in Babergh benefiting from this funding very soon.” 

The money is coming from the government’s Rural England Prosperity Fund, which offers financial support to help improve productivity while strengthening rural economies and communities.

Since 2023, the councils have used more than £1.1 million from the Rural England Prosperity Fund to support projects across the districts, with £647,757 awarded to 47 applicants in Mid Suffolk and £462,649 to 48 applicants in Babergh.

Examples include the conversion of a cowshed into visitor accommodation at TH Feavearyear and Son farm in Wingfield, equipping Fork Kitchen & Deli in Hadleigh with new ovens and mixers for its bakery, and installing solar panels at Lucid Systems in Hintlesham to help the business reduce its carbon emissions.

Cllr Teresa Davis, Mid Suffolk District Council cabinet member for thriving communities, said:

“We are proud of our fantastic rural businesses that operate in the district and are keen to support them to achieve their goals.

“If your business aims to become more sustainable or diversify its offering, don’t hesitate to get in contact with us and find out if this grant is right for you.”

Applications for the fund are now open and are being assessed on a first come, first served basis.

To find out more information about the Rural Business Growth Fund, visit the Heart of Suffolk website.

TH Feaveryear conversion