Phone mast rents increase by 135%
We reported in Law & Land Spring / Summer 2023 on the coming into force of the 2017 Electronic Communications Code which effectively reduced the amount of rent landlords could expect to receive from telecom operators. Two decisions in the Upper Tribunal in 2020 and 2022 resulted in £750 being considered a suitable rent for ‘unexceptional rural’ telecom sites, opening the way for telecom operators using this figure as their main offer meaning that landowners would need to go to tribunal if they wanted to challenge it, involving time and expense. A recent decision by the Tribunal involving a greenfield rural site, showed that an appropriate consideration should be set at £1,750. This likely to become the new starting point for negotiations.
Furnished holiday cottages – abolition of tax advantages
In its 2024 Spring budget, the last government abolished the tax advantages for furnished holiday lettings (FHL) with the new measures due to come into effect in April 2025 to bring them into line with other rental properties. The new rules apply to all FHLs and are designed to encourage more long-term lets to help counter the shortage of suitable rental properties. Even those holiday lets that would not be suitable for long term rent, such as many of those on farms, will still be caught by the new rules. Farmers with holiday lets should take professional advice on the steps they can take to mitigate the financial effects of the changes.
SSI update
Defra has made some changes to the guidance including new voluntary advice for each SFI action, and additional agri-forestry elements. There are now 105 capital items and five plans. Contrary to expectation, farmers and landowners wanting to add one of the new actions to an existing agreement will not be able to do so; instead, they will need to enter into a new one with the administrative tangle that might incur.
Health and Safety update
In July the HSE released its latest workplace fatality figures (for 2023/24). Agriculture retains its unenviable position of being the most dangerous sector to work in, relative to the size of the workforce, with 23 workplace fatalities. The most common cause of farm-related death remains accidents involving moving vehicles with older farmworkers being most at risk. In August, Farming UK reported on the prosecution of a farmer near Swansea who was filmed driving a tractor with his pre-teen grandchild alongside him in the cab. This was in breach of an earlier prohibition notice issued by the HSE relating to the same offence. This is an example of the type of behaviour and attitude that the Farm Safety Foundation is trying hard to change.
Labour commitment to farming
In August, Steve Reed, the new Secretary of State has announced a ‘new deal’ for farmers to ‘boost food security and drive economic growth’. Initiatives include making ELMS work for all farmers including small, upland, all pasture and tenanted farms; agreeing new veterinary terms with the EU (which is likely to take some time); a commitment to encouraging private investment in rural areas to improve things like broadband; and introducing a land-use framework to balance long-term food security and nature recovery. How much of this comes to pass remains to be seen but we will monitor progress in future editions of Law & Land.
Making tax digital
All businesses must ‘go digital’ by April 2026. To date only VAT-registered businesses have had to comply with the digitisation of tax administration but the new date means that sole traders, landlords and small businesses, including farmers, not reaching the VAT threshold must comply.
Bluetongue
Following an outbreak of bluetongue initially notified in August, the restricted zone affecting all keepers of cattle, sheep, camelids, and other ruminants has since been extended to cover 20 counties, including part of Warwickshire (as of November 1). The Animal Plant and Heath Agency interactive map showing the affected areas can be accessed here. As a matter of urgency, Defra is asking all farmers to check for signs of the virus and report any suspicions immediately. Free testing is available for animals being moved from, or being sold in, a high-risk county.
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