Chichester is home to a vibrant rural economy that is worth over £1 billion to the area and employs 9,000 people. It is the largest single employer by sector. We have a major growing environment, and this is due to our wonderful environment—our weather, sunshine and, mostly, proximity to the coast means that we have 10% more light than any other area in the UK, and that boosts growing conditions.
As an MP, I have had the opportunity to visit many of these businesses and see what 21st-century farming looks like. In many cases, it is not what I had imagined. Much of the growing occurs indoors in a highly controlled and precisely monitored environment, ensuring that crops are grown efficiently, sustainably and to the best quality. Some growing practices involve moving crops from nursery grounds, whether in glass houses or polytunnels, to open fields or other larger glass houses. However, what is clear is that each of these growing cycles is agricultural and should be classified as such.
The Tunnel Tech Ltd v. Reeves case brought to light a legal anomaly in how the Valuation Office Agency assesses business rates in agriculture. In doing so, the case broke with nearly 100 years of exemption from agricultural business rates for nurseries. Many business in my area are therefore pleased that the Government have brought forward this Bill to amend existing legislation and rightly deliver on their commitment to ensure that nurseries are treated as agricultural buildings.
Speaking to the West Sussex Growers Association ahead of this debate, I was told of growing concern, in the light of the Tech Tunnel Ltd v. Reeves case, for future assessments by the Valuation Office Agency of other agriculture buildings. There is now concern that historical exemptions applying to ancillary buildings for packing, offices or energy production, for example, may come under threat. I ask the Minister to clarify this. One company in my constituency, which grows 10% of the peppers sold in the UK, packs all its produce onsite in a building adjacent to the glasshouses where the peppers are grown. Similarly, businesses across the horticultural and agricultural industry have developed sustainable energy production by using their waste to produce energy in biomass boilers, for example.
The 2015 Court of Appeal decision created significant concern for the wider industry, so I am pleased the Government have taken swift action to rectify the issue and ensure that the measure’s implementation is retrospective. This has sent a clear message of support to the industry, which has been well received. The deputy president of the National Farmers’ Union, which welcomed the Bill, said
“this is a significant victory for nursery growers, and brings them in line with other farm businesses and providing essential certainty for the future.”
The Bill will ensure that agricultural land and buildings are not liable for a property tax that could otherwise have a significant impact on the cost of farming and produce, and we must make sure this remains the case. I fully support the Bill as it works towards the Government’s commitment to a productive and sustainable agricultural sector, which is so important to rural economies such as Chichester, and will become increasingly important as we leave the European Union.
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