HC Deb 08 May 1991 vol 190 cc718-9
11. Mrs. Gorman

To ask the Secretary of State for the Environment whether he has any plans to make farm shops liable to uniform business rate.

Mr. Key

Farm shops are, and have always been, liable to non-domestic rates.

Mrs. Gorman

Even though my constituents and those of my hon. Friend the Member for Basildon (Mr. Amess) gave overwhelming support last week to the Government's new policies on local taxation, with an 8 per cent. swing to the Conservatives wiping out a long-standing majority for Labour on Basildon council, thus reducing it from the Arsenal to the Accrington Stanley——

Mr. Speaker

Order. Could we relate this to farm shops?

Mrs. Gorman

—nevertheless the greengrocers of my constituency are concerned that while they pay the uniform business rate, farm shops do not. Unless my farmers, who are extremely versatile, have taken to growing bananas, pineapples, oranges and kiwi fruit, there is a case for an even playing field to be created for those who sell vegetables all over the country.

Mr. Key

I am grateful to my hon. Friend for giving me the opportunity to congratulate her electors on a sensible decision last Thursday. My hon. Friend is absolutely right; we wish to see the market operating on, perhaps, a level turnip field. Of course, farmers pay rates not only on farm shops but on agricultural buildings used for the storage of fruit and vegetables grown elsewhere, or for the storage of intervention board surplus grain or skimmed milk. Where produce is sold at the farm gate, the local Inland Revenue valuation officer may make an assessment for rates. A permanent stall situated at the entrance to a farm, used on a regular basis for the sale of farm produce, might be regarded as rateable.

Mr. Corbett

Will the Minister confirm that under the proposals for the council tax there are no plans to exempt farm shops from paying some form of rates? Will he also acknowledge that in scores of small businesses families who live above the shop and at the moment pay the poll tax upstairs and the uniform business rate downstairs would be exceptionally angry if there was any hint of exemption for farm shops?

Mr. Key

I reassure the hon. Gentleman that there are no plans to alter the rating of agricultural premises. We looked at the non-domestic rating system in the first part of our review of local government structure and finance and decided to retain the principle of the uniform business rate. That does not mean that we are wedded to every detail of the existing business rating system. We are certainly prepared to listen to those who wish to suggest improvements, but we do not envisage any major changes.

Mr. Lord

Is my hon. Friend aware of the immense pressures on farm shops and on all village shops for a series of reasons? Is he further aware that often the people who depend most on those shops are the elderly and those without transport who cannot travel to supermarkets to get goods at cheaper prices? When looking at these matters, will he do all that he can to ensure that we do not pile any more burdens on small shops in rural areas?

Mr. Key

Yes, of course, I shall be delighted to ensure that we give due consideration to important sources of community focus in rural areas. My hon. Friend will acknowledge that it was the revaluation process that many small businesses, and village shops in particular, found difficult rather than the tax itself. If the reform had not been introduced, the small business community would be carrying a burden in excess of £1 billion extra under the old rating system.