Government announces business rates change for nursery growers

The NFU has secured business rates change for nursery growers
The NFU has secured business rates change for nursery growers

The Government has announced measures to amend rating legislation to ensure that nursery growers are exempt from business rates as Parliament intended.

This follows an National Farmers' Union (NFU) member’s long-running legal case, finally decided in the Court of Appeal in 2015, which determined that nursery grounds growing under cover did not qualify for the agricultural exemption to business rates.

Since then the NFU has sought to engage with government departments and worked closely with Defra to address what what the union believes to be an anomaly - and not Parliament’s intention - one which would have 'damaging widespread implications' for the nursery growers and the wider horticultural industry which depends on them.

NFU President Meurig Raymond said: “I very much welcome Minister for Local Government's statement and his recognition of the importance of the exemption to the industry at this time of uncertainty.

“Having recently visited a member’s nursery ground supplying young plants to commercial producers, it was clear this issue had to be resolved.”

The NFU argued that the imposition of business rates in this situation could have forced many nursery growers out of business, potentially leading to a significant reduction in a range of UK produced crops.

'Important part of the rating system'

Minister for Local Government Marcus Jones announced the decision in a written statement.

He said: “Since at least 1928, plant nursery grounds have been treated by the Valuation Office Agency (VOA) as exempt from business rates as part of the general exemption for agriculture.

“However, following a recent Court of Appeal decision, the VOA has started to bring into business rates buildings at nursery grounds including structures such as polytunnels.

“The exemption for agricultural properties is an important part of the rating system. It ensures that large areas of agricultural land and buildings are not liable to a property tax which could have a significant impact on the cost of farming.

“I can confirm to the house that the government’s policy is that land and buildings at plant nursery grounds should benefit from the agricultural exemption for business rates.”