Rates reform '˜bad for rural areas'

Deputy president, Ivor Ferguson, says that if plans are not carefully designed and properly rural proofed they will have a negative impact on rural businesses and rural communities.

The government is suggesting small business rate relief should be targeted at the retail and hospitality sectors, but many farm diversification projects may not be eligible. However, he said the organisation was encouraged by assurances that its concerns would considered as the new system is developed.

“We need policies that improve economic activity and the sustainability of rural communities,” said Mr Ferguson.

“The proposals in their current format will not deliver this. The government is receptive to our concerns and I believe a solution can be found.

“Farm incomes are linked to volatile markets. Many farm businesses have responded by diversifying into other business areas.

“They qualified for the Small Business Rate Relief (SBRR) scheme. This has eased the burden of rates and helped businesses become established, often providing employment in areas where jobs are limited.”