Property
Business rates reform ‘must not push farms over the edge’
C
hanges to business rates could have big implica- tions for farmers who have
diversifi ed into other enterprises alongside agriculture, says a fi rm of accountants.
Saffery Champness issued
the warning after the House of Commons Treasury Committee published a unanimously-agreed report stating that the current system of business rates is ‘bro- ken’ – and urging the government to look at possible alternatives. Published on 31 October, the report states: “The government should take a deeper and more holistic look at possible alterna- tives that would keep the bene- fi ts that business rates offer, be- ing a secure and reliable source of revenue, whilst addressing the weaknesses.
The report adds: “It should prepare a consultation in time for the next Spring Statement to
identify potential alternatives to business rates with a view to sub- sequently carrying out a detailed evaluation of viable options.” Saffery Champness part- ner Martyn Dobinson, who is a member of the fi rm’s landed es- tates and rural business group, said changes to business rates could have signifi cant implica- tions for the rural sector – even though farm land and buildings have historically been exempt.
Diversifications “We have seen a steady move by many farming and estate en- terprises into other areas and revenue streams – renewables, tourism, farm shops, visitor at- tractions, and furnished holiday accommodation for example,” said Mr Dobinson. “Such moves increase the overall exposure of land-based business to business rates – not-
planning, design
and construction... of large-scale domestic and commercial geothermal heating and cooling systems
withstanding that such diversi- fi cation also creates opportunity for increased rural employment.” Mr Dobinson said it would be
counter-productive if any future regime for business rates acted as a disincentive for diversifi ca- tion. It would be helpful also to clarify whether any future relief will separate businesses under the same ownership, he added. “There are many questions still to be answered both on busi- ness rates, and the suggestion of Land Value Tax as an alternative, which has been fl agged up again in this consultation.”
Many rural businesses were
already under pressure as the sector prepared for Brexit and the end of the basic payment scheme. “It would be a travesty for a new business rates structure, wheth- er it includes agricultural land and buildings or not, to push them over the edge.”
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Farm shops could be affected by changes in business rates, say accountants
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