NFU unhappy about new levy on farmer and smallholder new buildings (From Smallholder)

NFU unhappy about new levy on farmer and smallholder new buildings

8:30am Saturday 13th February 2010 in

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Farmers and growers may face a new levy on any new buildings on their holdings under a change in planning regulations. The move has been described as “tax on food production” by the NFU, the CLA, TFA and CAAV who have been jointly lobbying for an exemption from the new levy for agricultural buildings.

The Community Infrastructure Levy, which has been published by the Government, may see a charge on almost all new building development. And despite strong lobbying from the agricultural industry, no exemption for farm buildings has been included in the regulations.

The levy is intended to see that part of any uplift in land values, created when planning permission is granted, is used to help fund the infrastructure required by the new development in the surrounding area. However, the evidence presented to Government shows that there is no such uplift in land value when planning permission is granted for agricultural buildings.

A joint statement from the NFU, CLA, TFA and CAAV said: “This is a very short-sighted move from Government particularly when it is promoting food production as part of its Food 2030 strategy. The charge will undermine the desire and ability of farmers and growers to invest in their business - essential for our long term food security. It is nothing more than a tax on food production.

“This levy places an additional financial burden on the entire farming sector and we are deeply disappointed by the Government’s approach.”