New bill ensures nursery growers treated equally on business rates

Parliamentary success has been achieved for nursery growers after years of campaigning by the NFU
Parliamentary success has been achieved for nursery growers after years of campaigning by the NFU

A bill has been laid in Parliament today that ensure nursery growers are treated equally to other agricultural businesses regarding business rates.

The Non Domestic Rates (Nursery Grounds) Bill confirms that plant nurseries in England will be covered under the agricultural exemption for business rates, along with other agricultural businesses.

The current legislation currently excludes nursery grounds growing mainly or entirely under cover from the exemption.

The issue first came to light following a NFU member’s long-running legal case, which was finally decided in the Court of Appeal in 2015.

This determined that some nursery grounds growing under cover did not qualify for the agricultural exemption to business rates.

'Significant victory'

The NFU has said today's news is a "significant victory" for nursery growers.

NFU Deputy President Guy Smith said it brings them in line with other farm businesses and provides essential certainty for the future.

“The NFU has been working hard behind the scenes with Defra and MHCLG to deliver this result for our members and I am pleased that the government has acted upon the case we made,” Mr Smith said.

“The decision to rectify this anomaly will prevent the wider horticultural industry suffering significant negative implications, and will allow growers to continue doing what they do best – producing food for the nation.”

Local Government Minister Rishi Sunak MP has been campaigning with the NFU on the matter. He said: “Plant nurseries are an essential part of the rural economy and it is vital they are protected.”

In some individual cases, some growers will see very substantial and unsustainable charges either waived or reimbursed.