16 December 2009
The NFU, CLA, TFA and CAAV have joined forces to stop a proposed planning levy which they say could be seen as a 'tax on food production'.
The Community Infrastructure Levy would be charged on all new building requiring planning permission. The idea behind the proposal is that part of any uplift in land values created when planning permission is granted could be used to help fund the infrastructure required by the new development.
But the four industry organisations want to see agricultural buildings made exempt from the levy. They argue that there is no uplift in land value when permission is granted for their developments. In addition, agricultural developments, such as livestock housing or commodity storage, have a minimal impact on the infrastructure that the CIL is expected to fund.
In a joint statement they said: "Any levy would have to be paid out of income, which is contrary to the underlying principle of the regulations. This would make agricultural development uneconomic and could potentially be seen as a tax on food production.
"We have had a very useful meeting with government, we have written to the minister responsible and we are hopeful common sense will prevail.
"Above all we should be encouraging farmers to invest in the necessary new buildings needed to support the additional food production required to help feed a growing global population - this is a point recognised by both government and the wider industry."
They called the CIL a "critical cost increase in the food chain which could not be borne by the farming industry alone".
No comments have been made.