For most agricultural businesses, dealing with local authorities or government agencies is part of everyday life.
In many cases, the best approach is to work with these bodies, build relationships and keep communication open. But what happens when the system stops working for you — or, worse still, works against you?
Richie Rees, Legal Director in Thrings’ Agricultural Litigation team takes a look at what to do when challenging decisions are not only justified, but essential to protecting the future of your business.
Everyday interactions with government bodies
Whether you’re applying for planning permission, paying business rates, or have land impacted by public footpaths, there’s no avoiding the regulatory framework that surrounds the countryside.
The rules governing these interactions are often decades old, with regulation contrasting with the slow but steady modernisation of the farming industry. This can result in slow processes, inconsistent interpretations and decisions made that don’t reflect modern agricultural practice.
Decisions taken without a full appreciation for the full picture can impact the viability of a business, with two increasingly common areas requiring challenge being around business rates and public rights of way. Where this happens, a firmer response may be required to secure a fair outcome.
Challenging business rates
Business rates are a tax on commercial properties, set by the Valuation Office Agency (VOA) and collected by local authorities. However, there is a long-standing statutory exemption for buildings used solely in connection with agricultural operations.
Over time, the government’s interpretation of what qualifies as “agricultural use” has become narrower, often penalising modern farms whose scale or efficiency makes them appear more “industrial” than traditional holdings.
There is, however, scope to challenge these interpretations as was found in the outcome of a Court of Appeal case between free-range egg producer Fridays Ltd and the VOA earlier this year with the business successfully arguing that buildings used for its egg packing and grading qualified for exemptions as they were integral to the core farming activity of producing eggs for sale.
This judgment makes two points very clear:
In order to successfully challenge VOA interpretations, it is important for agricultural businesses to review how their own properties are classified. If such a review establishes that perceived commercial buildings can qualify for agricultural exemption, it could make a substantial impact on the tax bill at the end of the year.
Rights of way: finding balance and protecting your land
Public footpaths and bridleways running through farmland can pose safety risks, disrupt operations and limit land use. While these routes are managed by local authorities, the legal framework is often inflexible and, at times, illogical.
A path that has not been walked for decades may still be enforceable if it appears on the Definitive Map, while new claims can emerge based on centuries-old records. The additional challenge faced by landowners is that the long-awaited deadline for applications to the map was scrapped earlier this year – arguably making it increasingly less “definitive”.
There are formal routes to challenge these designations, including applying for diversion/modification orders or by submitting evidence to show a route has been wrongly recorded. The success or failure of an application will turn on the facts and evidence presented, with the removal of the deadline giving some applications a greater chance of success simply because there is no longer a time limit on their submission.
The important thing to get right first time is to identify the legal and factual requirements set out in the statute. If the application is going to be caught in the backlog, you don’t want it to be sat there with a faulty legal argument or irrelevant evidence so that it doesn’t immediately fail when it is finally assessed.
Richie Rees, Legal Director in Thrings’ Agricultural Litigation team, said: “Dealing with local authorities and government bodies is a standard practice for many agricultural businesses and food producers so it makes sense to work collaboratively with them to get the best results – but this isn’t always the case.
“Decisions won’t always go your way but, when they shouldn’t and don’t, you need to have the confidence to take action. By challenging decisionmakers directly, it will give you a better chance of reducing or even removing unnecessary financial burdens and protecting the safety, security and value of their estate.
“Launching a targeted challenge can help you deliver far-reaching returns for your business in the long term, and securing robust legal advice as early in the process as possible will help to position you in a way that will increase the likelihood of success.”
Thrings’ Agriculture team is one of the largest of its kind in the UK with decades of experience in successfully supporting its farming and landowner clients to achieve their aims and the potential for their business. Its lawyers are ranked in the highest tier by both the prestigious Legal 500 and Chambers & Partners directories and have been chosen by the NFU to act for its members in more counties than any other firm.
Find out more about how we can support farmers, food producers and rural communities on our Information for Farmers page.