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.
NFU Deputy President Guy Smith 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 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.
“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 said: “Plant nurseries are an essential part of the rural economy and it is vital they are protected.”
In some individual cases, NFU members will see very substantial and unsustainable charges either waived or reimbursed.