Nursery growers will receive equal business rates to the rest of agriculture after years of campaigning from the NFU.
Rishi Sunak MP, minister for local government, confirmed that plant nurseries will be covered under the agricultural exemption for business rates, in line with the rest of agriculture.
Sunak said it was part of the government's plan to promote a “productive, competitive and sustainable UK agricultural sector.”
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.
NFU Deputy President Guy Smith, who met minister Rishi Sunak yesterday, said: “I’m pleased the Minister has recognised the importance of the exemption to the industry, particularly with Brexit causing uncertainty for farm businesses.
“It means plant nurseries which have had to pay business rates will no longer have to do so. It will also be applied retrospectively to 1 April 2015 so those nurseries will be reimbursed any payments.
“Over the past three years we have been campaigning hard and engaging with various government departments, including Defra, to address what we believe to be an anomaly – and not parliament’s intention - one which would have had damaging widespread implications for the nursery growers and the wider horticultural industry which depends on them.
In his full statement Rishi Sunak said: “This government is committed to ensure that both agricultural land and buildings at plant nursery grounds are exempt from business rates.
“We will be bringing forward legislation as soon as we can so that these sites are not liable for a tax that could have a negative impact on the cost of farming and produce. This includes backdating all payments for those affected.'
