NFU backs business rate relief proposal
NFU backs business rate relief proposal
GOVERNMENT proposals to exempt buildings used by contractors and machinery rings from business rates have been welcomed by the NFU.
The new proposals form the basis of a consultation paper launched this week by the Department of the Environment, Transport and the Regions.
At the moment only property used solely for agriculture carried out by the occupier on the same land is exempt. This means any building used by contractors or those involved in share farming or machinery rings would be liable for business rates.
NFU spokesman Andrew Opie believes this flies in the face of government plans, voiced in the Rural White Paper and the Action Plan for Farming, to actively encourage diversification and increased competitiveness of rural businesses. He says the NFU is pleased with the governments swift action.
The problem was originally highlighted when a North Yorks farmer was hit with a demand for £13,000 in back payments. Gerald Brown, who share farms with four other producers, was unaware he should have been paying business rates on his machinery store until a visit from his local valuation officer. He has refused to pay and the case is now pending.
Due to lack of resources the regulations have not been strictly enforced. But the widespread fear is if the case goes against Mr Brown a new precedent will be set. This could mean many more farmers facing large demands. If the government accepts the results of the proposal this threat will be lifted.
However, any change to the law will require primary legislation to be enacted and is unlikely to be retrospective.
This means Mr Browns case could still be taken further, but according to the DETR the Valuation Office was closely involved in the drafting of the new proposals which might mean a more sympathetic hearing. *