§ Mr. Heddle asked the Secretary of State for the Environment (1) if he will make a statement on his policy towards the rating of agricultural land and buildings; and what is the anticipated yield from this in (a) real terms and (b) as a percentage of the total rate receipts at the last available date;
§ (2) if he will make a statement on the effect of the rating of agricultural land and buildings upon the profitability of the agricultural industry, the cost to the consumer, the cost of living and the effect on farm modernisation.
§ Mr. King:We are currently looking at the whole question of rating but we have no plans to remove the existing exemption from rates of agricultural land and buildings. If we were to do so, there would be a significant 293W adverse effect on the financial position of the fanning industry leading to a loss of home food production, higher imports and a rise in food prices. There would also be a significant cost in manpower of bringing agricultural land and buildings into valuation.
The information concerning the yield if we were to rerate agricultural land and buildings is not available in the form requested; it is estimated however that about £200 million might be added to the total rateable values in England and Wales. The revenue raised would depend on the rate poundages levied in the year in question.