§ Ms AthertonTo ask the Secretary of State for Transport, Local Government and the Regions when rate relief for new farm diversification enterprises will be available. [5970]
§ Mr. RaynsfordThe Rating (Former Agricultural Premises and Rural Shops) Act 2001, which received Royal Assent on 11 May will be brought into effect in England on 15 August. From this date all new small scale non-agricultural businesses on farms with rateable values of up to £6,000, whether or not operated by the fanner, will receive up to 5 years' mandatory 50 per cent. rate relief. Also from this date most small village food shops will qualify for 50 per cent. mandatory rate relief under the existing village shop rate relief scheme.
The new relief will lower the start-up costs for small non-agricultural businesses located on what had been agricultural land and buildings. This will enable farmers to diversify either directly by starting new businesses themselves, or indirectly, through the sale or leasing of former agricultural premises.
By extending the existing village shop rate relief to most other food shops, vital support will be given to more village businesses that provide essential services to the community.
The introduction of these reliefs fulfils Government commitments made in the Action Plan for Farming, the Local Government Finance Green Paper and the Rural White Paper.