The Rates on Agricultural Land (Relief) Act, 1946, is, in effect, a temporary Act. Under an Act of 1964, the period to which it applied was extended to 31st March, 1967. The present Bill proposes to extend this period up to 31st March 1970. The Bill also proposes to extend the reliefs afforded under the Act of 1946 as amended. These reliefs will operate in the present and two following years.
Rates relief on agricultural land will now be applied in three broad categories. In the case of small holdings with rateable valuations of £20 or less —and these comprise the great majority of farms—it is proposed to increase the primary allowance from 80 per cent to 100 per cent of the general rate in the £, thus effectively de-rating the land. Where a holding of land has a valuation of more than £20, but not more than £33, the first £20 of valuation will also, in effect, be de-rated and the occupier will be directly liable for rates only on the part of the valuation above £20. This liability can be abated in appropriate cases by the employment allowance. Finally, holdings with rateable valuations above £33 will continue to get a primary allowance of 80 per cent of the general rate in the £ on the first £20 of such valuations and a supplementary allowance of 30 per cent of the general rate on the balance.
During the next three years the employment allowance will be available towards the relief of the entire net rates payable on holdings with valuations over £20. Up to this the allowance was related only to the portion of the net rates on the part of the valuation above £20.
The increased rates of allowances under the Bill will increase the total amount of the agricultural grant by £1.6 million to almost £16 million in the current year. Ten years ago the grant totalled less than £5.5 million and met 44 per cent of all rates on agricultural land. In 1962-63, when the Rates on Agricultural Land (Relief) Act, 1962, increased the primary allowance from 60 per cent to 70 per cent and introduced a supplementary allowance of 25 per cent on valuations over £20, the grant rose to £8.5 million and met 57 per cent of the rates on land. The primary allowance was further increased to 80 per cent by the 1964 Act which also raised the supplementary allowance to 30 per cent. In consequence, the grant increased to £11.2 million in 1964-65, meeting 64 per cent of land rates. The £16 million grant this year will, it is estimated, meet approximately 70 per cent of all rates on land in county health districts. As a result of these progressive increases in rate reliefs met from the Agricultural Grant, farmers will pay less net rates on their land this year than they paid ten years ago in 1957-58.
The proceeds of the increased grants provided during recent years have accrued in the main to smallholders. The increase to 100 per cent in rate relief provided for in section 3 of the Bill represents the final step in this process by providing, in effect, for the complete derating of all land for farmers with land valuation of £20 or under. The derating will apply to 77 per cent of all rated holdings of agricultural land in the country. The benefits provided by the increased primary allowances for the further 10 per cent or so of holdings in the £20 to £33 valuation category will range from almost complete derating at the bottom of the scale to an average relief of approximately 61 per cent of the gross rates at the top of the scale.
As a consequence of the increase in the primary allowance for holdings with valuations under £20, provision is made in section 8 for the waiving of small amounts of rates which would otherwise fall to be levied as separate charges in respect of compensation for malicious injuries. It would normally be uneconomic for a county council to levy and recover these charges on small holdings which are otherwise de-rated.
The Bill also provides that the making of the allowances will be conditional on payment of the net rates due within the year unless the county council, with the consent of the Minister, decide to waive the condition in relation to any year. It is proposed to give power to the Minister to extend the time for payment beyond the end of the year.
The reliefs proposed in the Bill will have effect in the present year and county councils generally have now reached an advanced stage in the preparation of demand notes. It is highly desirable that the Bill should become law at the earliest possible date.