Agriculture Bill

Baroness Garden of Frognal Excerpts

Committee stage & Committee: 5th sitting (Hansard) & Committee: 5th sitting (Hansard): House of Lords
Tuesday 21st July 2020 Lords Chamber

This amendment may seem like a fringe issue within the Bill, but I regard it as an important opportunity to assist in restructuring the farming sector and ensuring that it is fit for purpose. Retaining the county farm structure is very important in this respect. I also support the other amendments in this grouping that protect the interests of tenants, as recommended by TRIG and as spoken to by the noble Baroness, Lady McIntosh.

[The Deputy Chairman of Committees (Baroness Garden of Frognal) (LD)]

I was about to call the noble Lord, Lord Lucas, but do we have the noble Baroness, Lady Young, back with us?

[Baroness Young of Old Scone [V]]

We do indeed. I shall speak to Amendment 222 in my name. I feel, at this precise moment, like having a rant about the inadequacies of rural broadband, but I shall restrain myself. I thank the noble Lord, Lord Randall, for supporting Amendment 222.

The community infrastructure levy was introduced in 2010. Some local planning authorities apply it to new agricultural buildings, but some do not. Agricultural buildings are often required for things such as housing livestock or storing grain, and new buildings are often driven by changes in regulations on animal welfare or food safety standards; or, they may enable business growth or productivity. These things will be important in the new agricultural world we are envisaging in the Bill. New agricultural buildings, however, are not like commercial buildings or housing developments, which are built by investors for immediate profit by selling or letting. Farmers have to stump up for the CIL payment, which can be tens of thousands of pounds, for loans they have taken out to construct a building, and they add to the servicing costs of loans—a direct cost on the farm business.

We are, in the Bill, seeing an environment where farming businesses will need to invest in an innovative way to improve their competitiveness and productivity. The CIL charge for new farm buildings risks inhibiting such investment. It is even more complicated in the current position, because some planning authorities, as I said, choose to levy the CIL on new farm buildings, and some do not, so there is an uneven playing field across the country, for a farming industry that supplies national and global firms. I can imagine the conversations with the supermarkets if you tried to tell them about your CIL charge when they are pressing down on costs across industry as a whole.

We need to bear in mind what the CIL was intended to do; it was a charge to fund local facilities, infrastructure and services to meet increased pressures that new developments often cause. Agricultural buildings are often large in size, so they attract a higher CIL, but low in impact on community infrastructure and services. Cows do not really need social services or want enhanced transport routes. Agricultural buildings are clearly defined in planning laws, so there is no danger of this becoming a creeping extension to any exemption, and there is clear evidence that imposing the CIL discourages investment in these farm businesses. So, this amendment would enable the Government to help farm businesses when they are facing what will, by all accounts, be very uncertain times as a result of the major changes in the agricultural support system. I hope the Minister might see his way to supporting this amendment.

--- Later in debate ---

When it comes to farmland and farm buildings—both with new agricultural buildings, as in this amendment, and with change of use required for the conversion of derelict former agricultural buildings into more effective use—the CIL is a blight on the rural community. I strongly recommend to the Government that they should grab the detail of this amendment and perhaps even extend it further. That will have a bigger impact on kick-starting building and entrepreneurship in the rural economy than all these changes of simplifying the planning system. Money is what counts when it comes to development, and the CIL takes money away at the beginning of the development. Cash flow-wise, that therefore makes many developments impossible for people. This is an excellent amendment; I hope the Government adopt it.

[The Deputy Chairman of Committees]

The noble Lord, Lord Inglewood, has withdrawn, so I call the noble Lord, Lord Carrington.

[Lord Carrington]

My Lords, I declare my interests as a farmer and landowner as set out in the register. I support the proposal in the name of the noble Earl, Lord Devon, to remove Clause 34 and Schedule 3 covering agricultural tenancy provisions. I agree wholeheartedly with everything said by the noble Baroness, Lady Neville-Rolfe.

As drafted, the clause is neither fish nor fowl nor good red herring, in that—despite the important work of the Tenancy Reform Industry Group—the prospective legislative reform is not balanced and reflective of both parties’ interests, and runs the risk of damaging relationships and increasing anxiety and uncertainty. Although I welcome some of the proposals of Schedule 3—such as the removal of the minimum retirement age of 65 from AHA tenants, the widening of the pool of arbitrators and the paragraph to protect both tenant and landlord in new investment—others are more contentious.

In particular, I welcome the introduction of a strengthened condition of suitability for those succeeding to a tenancy, but the detail has not been agreed by the industry and should not be left unclear. Until the regulations are drafted, landowners cannot be certain whether the “improvement” suggested will diminish the effect of the loss of the commercial unit test. Neither is it clear how landowners’ interests are protected in the assessment of reasonableness.

The NFU has welcomed the reforms but also urges that other reforms under discussion at TRIG, such as landlords’ consent on variation of terms under the tenancy Act, are taken forward. Please could the Minister consider separate legislation on tenancy reform, rather than rushing it through as part of the Agriculture Bill? The issues are different, and it is clear from this Bill that what is proposed is only a first step and lacks detail. TRIG has been united on supporting landlord-tenant relationships, and this should be built on.