Horse hope for farmers

Riders and farmers would benefit, say ministers

Farmers could be given rate relief for setting up horse-related ventures, such as pony-trekking centres on their land, ministers are proposing.

The scheme is part of a government plan to help revive farming in Britain.

Last year, 200 riding schools closed because of burdensome regulation and tax

Archie Norman

The proposals - which are being published for public consultation - would give farmers 50% mandatory rate relief for new small-scale horse-related activities, such as riding schools on their land.

But shadow environment spokesman Archie Norman said the plans were not new - and were a watered-down version of the original proposals.

And he said Labour was doing nothing to help the horse industry.

Power to double relief

Ministers say the tax relief would help farmers to diversify while continuing to be employed in farming.

Many farmers have been forced out of business in the past few years, hit by steadily falling incomes.

Local councils would also be given the power to increase the relief to 100% for businesses which they considered needed additional help.

Farmers would only be eligible if the enterprise was new and located on farming premises.

Each new business would be able to receive relief for five years.

Mr Prescott revealed the plans as he was giving other pledges to boost rural communities, including protecting peat-bogs.

He said: "These proposals take forward another of the commitments in the action plan for farming, launched by the prime minister at the farming summit in March.

"It forms part of our strategy to promote sustainable rural economies which will be set out in the Rural White Paper to be published in the autumn."

Countryside spending

Mr Norman said: "The horse industry has had a rotten deal from this government.

"It is already overtaxed and over-regulated. Last year, 200 riding schools closed because of burdensome regulation and tax - nearly 10% of the total.

"Rate-relief on equestrian facilities was one of the prime minister's commitments following the farming summit. Now all we are getting is a diluted version of the same announcement."

Mr Prescott also gave details of countryside and wildlife funding secured as part of the Spending Review 2000.

It would rise from £135.5m this year to £161.5m in 2001/2.

Mr Prescott said further sums would also allow the Countryside and Rights of Way Bill to be implemented and greater wildlife protection.