A further boost to the rural economy was announced today at Scotland's first-ever Rural Gathering.

The Scottish Government intends to fund up to ninety per cent of projects in rural communities, such as small businesses, renewable energy projects and community gardens and festivals through the LEADER programme.

Previously LEADER provided up to a maximum of 50% of funding for local projects with the rest having to be found elsewhere.

The announcement coincides with new figures which show life in rural Scotland is thriving: people have longer life expectancy, higher employment and a greater sense of safety in their neighbourhoods than those living in urban areas.

Addressing delegates at the Rural Gathering, Cabinet Secretary for Rural Affairs, Richard Lochhead said: "A thriving future for rural Scotland is vital to the social and economic fabric of the whole country.

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"Grassroots community development will help deliver sustainable economic growth in every corner of Scotland.

"Government funding is available for local projects but in the current economic climate communities have found it difficult to find other sources of funding.

"Increasing funding up to 90% will also provide extra help for small rural businesses and rural jobs."

The Rural Gathering aims to celebrate all rural Scotland offers and support the rural economy.

The event gives delegates a chance to network and share best practice. Two pioneering examples in the rural sector featuring at the event were:

• Fintry Development Trust: Gordon Cowtan spoke at the Rural Gathering as one of the four trust members who negotiated for the inclusion of an extra turbine for the community in a wind farm development to reduce the village's carbon-based energy use. This was the first time this had been done in Scotland. The project came top in the Scotsman's recent Green List.
• Here We Are, Cairndow: This innovative community empowerment project established in 1998 was discussed. HWA's custom-built visitor centre next to the popular Loch Fyne Oyster Bar in Cairndow explains how a rural community can make its way in the modern world while staying true to its roots. The centre helps to foster a sense of pride in the community and provides employment for eight people on a full and part-time basis.

(GK/BMcC)