Egg producer wins key ruling to stay exempt from business rates

Kent-based egg packer Fridays has won a Court of Appeal victory that means parts of its business will continue to enjoy exemption from business rates – a ruling which has wider implications for the whole agricultural sector.

The case revolved around the status of three buildings on its 214ha farm in Kent, used for packing and storing the eggs, and whether they qualified for agricultural business rates exemption.

The Valuation Office Agency’s original assessment (which dates back to 2017) was that the three buildings should all be charged business rates as they were not directly involved in agricultural operations.

This was challenged by Fridays in 2021 in a case where it was represented by law firm Thrings and supported with funding under the NFU’s legal assistance scheme. 

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Fridays contended that the buildings were integral to their agricultural operation – which produces more than 3m eggs weekly – and should remain exempt.

This view was shared by the Upper Tribunal in a judgment published in August 2024.

But the government’s Valuation Office Agency then escalated the case to the Court of Appeal – which has now upheld the original decision to grant Fridays exemption from business rates.

“It is not necessary for the operations carried out in the three buildings to be agricultural operations, provided that they are ‘connected with’ agricultural operations on agricultural land,” said the ruling.

Implications

As well as being a major success for Fridays – which is set to avoid about £200,000 in annual business rates – the judgment has significant implications for other food producers, who may be facing similar rates demands on parts of their agricultural businesses.

Andrew Friday, director of Fridays, said: “We are delighted with this outcome and the long-overdue clarity it provides both us and agricultural producers across the country.

“We are grateful to the court for its careful consideration and final decision, which recognises the reality of modernised farming practices and the essential role that our facilities play within an operation of our scale.”

NFU president Tom Bradshaw said described the outcome as “significant”, not only for preventing Fridays from being unfairly taxed hundreds of thousands of pounds, “but also because it clarifies the application of the exemption”.

Richie Rees, senior associate at Thrings, agreed. “With so many agricultural businesses having waited for this outcome, including many with pending applications of their own, we hope this gives them the certainty they need in understanding the standards they have to meet to qualify.”