The amended permitted development rights will apply in smaller settlements too as they are based upon the use of the buildings, but protections are in place for key community buildings like pubs.

Like many other rural business owners affected by the Covid-19 pandemic, publicans will be closely watching the business interruption insurance test case which has started in the High Court. It will establish to what extent insurers will need to cover Covid-19 claims against their policies, by testing a range of policy wordings and questions including whether conditions such as the presence of the disease or denial of access to the premises can be met to trigger a valid claim.

FOOD & FARMING

Turning carbon dioxide into animal feed
Nine projects to develop more efficient systems of food production will benefit from a total of £24 million of government funding. They include over £2 million for REACT-FIRST, which will use carbon dioxide from Drax Power’s Selby power station and apply its CO2-to-protein process to generate food for fish and poultry with up to 75% smaller carbon footprints. Robot Highways in Lincoln has been awarded £2.5 million to perform the largest known global demonstration of robotics and autonomous technologies on a farm. Whilst InFarm2.x will receive over £3 million to develop a vertical farming system capable of growing a wider range of fruit and vegetables.

Collaborating delivers for the environment
Under Environmental Land Management, collaboration between land managers is likely to become more commonplace. A recent evaluation based on 98 groups which were supported by the Countryside Stewardship Facilitation Fund (CSFF) between 2015 and 2017, shows that option richness and option diversity were significantly greater in facilitated agreements. While it was not possible to assess environmental impacts through the scheme, the implication is that agri-environment scheme activity facilitated by CSFF groups leads to more positive environmental outcomes than individual agri-environment scheme agreements which have not benefited from a group facilitator. However facilitation adds a cost; under the scheme this is supported and averaged £3,763 per group member over the life of the agreements. As well as delivering more environmental outcomes Tony Juniper, Chair of Natural England, argues that “by sharing knowledge and expertise, farmers and landowners benefit from the creation of a stronger community in their local area too”.

Bovine TB cattle vaccination trials
Bovine tuberculosis (bTB) cattle vaccination trials are set to get underway in England and Wales as a result of a major breakthrough by government scientists. A vaccine was one of the key elements of the long-term bTB strategy to eradicate the disease in England by 2038, the trials will continue until 2024. The goal remains to develop a deployable cattle bTB vaccine by 2025.

Queen sells gin
The Queen is selling gin infused with botanicals harvested from the Buckingham Palace gardens. The premium small-batch London dry gin being launched by the Royal Collection Trust is infused with bay and mulberry leaves found in the royal gardens and retails at around £40 a bottle. Sales will help fund the care and conservation of the Royal Collection, one of the largest and most important art collections in the world. Its launch follows news that in common with many leisure businesses, Covid-19 has affected the trust’s income which is understood to be down by £18 million.

Covid-19

Test case starts: Covid-19 and business interruption insurance
The Covid-19 pandemic has resulted in unprecedented financial challenges for businesses with many being unable to trade due to lockdown restrictions. The High Court is currently hearing a test case which will outline to what extent insurers will need to cover Covid-19 claims against their policies, specifically business interruption insurance policies. The case will examine how denial of access and notifiable disease extensions will be interpreted in relation to Covid-19 claims. A judgement is expected in September and will provide important clarity for businesses. Irrespective of the outcome of this case, after nearly a decade of flat or falling insurance rates, UK motor and property insurance premiums are expected to rise. According to the 2019 A M Best Market Segment Report, the reported combined ratio for the property and casualty insurance industry was over 100% for the first time since 2016, indicating an underwriting loss was made on policies.

POLICY

UK determination on issues slows trade deals
British negotiators have conceded that a rapid post-Brexit US-UK trade deal will not be struck ahead of November’s presidential election. The UK government believed an “oven-ready deal” could easily be signed off by July 2020 but the global pandemic and wrangling over contentious issues such as the import of American agricultural products means the deadline will be missed by some margin. A third round of talks will begin next week but one official has said “Is it going to happen this year? Basically, no”, a sentiment echoed by Robert Lighthizer, the US trade representative leading the talks for Washington. The prime minister’s official spokesman said “we have been clear that discussions throughout this intensified process have continued to be constructive but significant differences still remain on a number of important issues”.

Negotiations with the EU appear to be in an even more precarious state, though Downing Street insists it is simply a case of neither “breakthrough nor breakdown”. Differences remain around a level playing field for businesses, governance, state aid rules and fishing rights. Boris Johnson’s July deadline for an outline agreement will undoubtedly pass without one, but will a deal be struck before the end of the year? It seems not, with the government’s working assumption being that Britain will trade with Europe on WTO terms in the future. In which case it is important to bear in mind that the UK Global Tariff sets our external tariffs at closer to current rates than the trade liberalisation approach which was once proposed. The prime minister’s official spokesperson said “the discussions do continue to be constructive… but equally I think we acknowledge that there are still significant differences”. A further round of talks is scheduled for August.

Higher taxes for the wealthy?
Chancellor Rishi Sunak has said he is prepared to take difficult decisions after spending £188 billion on tackling the Covid-19 outbreak. Nathan Long, analyst at Hargreaves Lansdown, said “it would be naïve to assume the chancellor didn't have his eye on tweaking taxes to refill his coffers”. The chancellor has asked the Office of Tax Simplification to review capital gains tax (CGT) but the Treasury has insisted that this is routine to ensure the system is fit for purpose, and highlighted that CGT is the last major tax to be reviewed. Mr Sunak is known to be concerned about avoidance measures, whilst colleagues on the opposition benches have argued that CGT and income tax rates should be more closely aligned, as the average CGT paid on the sale of assets is 15%. It is worth noting that proposals to simplify inheritance tax rules from the Office of Tax Simplification are yet to be acted upon. It is expected that Conservative MPs will push back against any tax increases, claiming that middle income families are already unfairly taxed on modest gains.

A new report on the Management of tax reliefs by the House of Commons Public Accounts Committee says that their full cost is not known, but could exceed £159 billion a year. The committee is concerned the reliefs “are not sufficiently evaluated to ensure they are delivering what was intended when they were introduced”, and that “unacceptably slow progress” has been made in improving the management of reliefs. The committee argues that “the impact of Covid-19 on public finances means that it is ever more important that tax reliefs are demonstrably cost-effective” and demands an “immediate and fast response” to “the largest and riskiest tax reliefs”. All these factors combined mean that tax reliefs will remain in the spotlight.

ENVIRONMENT & NATURAL CAPITAL

25 Year Environment Plan failing
An interim report by the Natural Capital Committee says the government is failing to achieve its 2011 objective for the current generation ‘to be the first generation to leave the natural environment of England in a better state than it inherited’. The report highlights that only 38.9% of protected terrestrial and freshwater sites have been restored to a favourable condition, a 2.2% increase since 2013. The 25 Year Environment Plan target is 75%. It also criticises the government for missing its own woodland planting targets for the last eight years, and points out that only 16% of England’s surface water bodies are in ‘high’ or ‘good’ condition status. The committee supports investing in nature as part of a resilient green recovery from Covid-19, claiming significant economic benefits can be achieved by investing in natural capital assets and delivering the 25 Year Environment Plan in a more cost-effective way. As an example planting woodland around the periphery of major towns and cities would create economic benefits of nearly £550 million per year across the country. Professor Dieter Helm, Chair of the Natural Capital Committee said: “nine years have passed… yet there is still no clear evidence of sufficient progress”. He added “an environmental baseline census for measuring progress is urgently needed. Much of the current environmental spending remains inefficient and siloed”.

England: £5.2 billion for flood defences
A new long-term plan to tackle the risks of flooding and coastal erosion will see £5.2 billion invested by 2027 to better protect 336,000 properties. The funding includes £200 million for innovative projects such as sustainable drainage systems and nature-based solutions like temporary or permanent water storage areas. This seems a small sum, but the £640 million Nature for Climate Fund and Environmental Land Management scheme will play a role too. The Environment, Food and Rural Affairs (EFRA) Committee’s inquiry into flooding continues. Written evidence can be submitted until 28 August in response to questions which include, “with increasing focus on natural flood management measures, how should future agricultural and environmental policies be focussed and integrated with the government’s wider approach to flood risk?”.

Scotland: Diversify into forestry
Scottish farmers and crofters are being offered £1 million in funding to diversify into forestry. The funding is from the Agricultural Transformation Programme and is in addition to the £500,000 recently announced by Scottish Forestry to cover up to 40% of the cost of forestry and timber processing equipment. Both funding streams are for smaller scale projects and enterprises. Rural Economy Secretary Fergus Ewing said “this scheme will be hugely beneficial to farmers and crofters, providing additional income and shelter for stock and crops”. He added that the new woodland would “capture carbon, alleviate the impacts of flooding and provide new habitats for wildlife”. If you would like to discuss an application please contact Andrew Macdonald.

Scotland’s Natural Economy
Scotland’s natural economy has been valued at £29.1 billion per annum, equivalent to more than a fifth of Scotland’s Gross Value Added (GVA) in 2018 according to BiGGAR Economics and SRUC. The sector also employed 290,100 people, equivalent to 11% of all Scottish jobs. The energy sector made a particularly significant contribution, both to the natural economy and overall figures, being valued at £20.9 billion GVA and supporting 67,000 jobs. If the energy sector is excluded from the definition, the GVA per job in the natural economy reduces to £37,000, 29% lower than the Scottish average. This is mostly due to low GVA per job sectors, such as agriculture (£19,000 GVA per job) and tourism (£18,000 GVA per job). Despite containing some low GVA per job sectors, the natural economy (excluding energy) grew by 25% over the period 2008-2018. The value of tourism increased by 60% and agriculture by 39%.

Countryside Stewardship: Extension to capital agreements
Due to Corona-19 affecting progress with works, a one year extension is being offered for capital agreements that started after 1 April 2018 or in 2019. It applies to: Hedgerows and Boundaries grant, Woodland creation, Woodland tree health, Woodland management plan, Options PA1, PA2 and PA3, Water capital grants and Historic Buildings Restoration grants. Please contact Stuart Nicholls.

PROPERTY & DEVELOPMENT

England: Permitted development rights overhaul
Legislation laid in Parliament on 21 July sets out additional permitted development rights (PDRs) intended to boost housing supply and revitalise town centres in England. From 31 August 2020, full planning applications will not be required to demolish and rebuild unused commercial buildings as homes if the building has been vacant for at least six months. This PDR allows for works for the construction of a new purpose-built block of flats or detached dwelling house that can be up to two storeys higher than the original premises. There are a number of caveats to the PDR set out in the legislation, with the buildings Use Class on 12 March 2020 being one of the key eligibility criteria. In a letter to the Secretary of State, the RICS, RTPI, RIBA and CIOB have outlined concerns about the quality of housing delivered through PDRs saying they “..should not be considered unless subject to clear space, building and design standards”.

The Use Class Order in England has also been amended to group town centre uses, learning institutions and community uses. The intention is to allow businesses the freedom to change to a range of compatible uses reflecting changing demands on commercial business models. There is more information on the right to demolish and rebuild as a home here and the amendments to Use Classes here.

A planning system designed for the rural economy
The CLA has continued its Rural Powerhouse campaign by launching a report which argues for a planning system designed for the rural economy. Its recommendations for short-term action include:

• Remove Community Infrastructure Levy (CIL) for all new farm buildings

• Requiring planning authorities to factor current and emerging technology into their assessments

• Central government must address the housing needs of all communities

• Introduce a national policy for roadside barns

• Resource or simplify the planning system so that it is fit for purpose.

Landlord's right of entry
The Court of Appeal has handed down significant decision supporting landlords' rights of access on tenanted land. The case, Rees v Earl of Plymouth [2020], considered the extent to which a landlord can rely upon tenancy reservations to carry out works on tenanted land. A High Court case originally ruled that a restrictive approach to reserved rights of entry in a tenancy should be taken. This would prohibit surveys or any work that might have caused damage to the land such as environmental investigations in advance of planning applications.

Law firm Burges Salmon, which acted for the successful landowners in the appeal, said the conclusion of the appeals case means that rights of entry should be “interpreted sensibly, not unduly legalistically, and in the context of the land to which they apply”. “Moments of friction that arise… do not result in court hearings, nor do they turn on very detailed analysis of specific rules”. Instead, according to the firm, “they are guided far more by the broad thrust of the Court’s approach” and added “this case is likely to be seen as a significant decision supporting landlords’ rights of access”.

Benefit ban ruled unlawful
Landlords are being reminded they should not have blanket policies that discriminate against benefit claimants. A recent case in York County Court backed by housing charity Shelter, established that it is unlawful for landlords and letting agents to apply "No DSS" policies. The case found that rejecting tenancy applications because the applicant is in receipt of housing benefit is unlawful, as it is indirectly discriminatory on the grounds of sex and disability.

OTHER RURAL NEWS

And finally…

Council fined over tree branch death
Wirral Council has been fined £100,000 and also ordered to pay £50,000 in costs after a falling tree branch struck a pregnant woman, leading to the death of her baby daughter. A large branch fell from a mature horse chestnut tree, crushing the roof of Elizabeth Stear’s car and injuring her. An investigation found the branch had a crack on its upper edge where it joined the main trunk and had begun to separate for at least one growing season before it struck Mrs Stear. The tree had not been inspected for at least 13 years. The Council admitted breaching health and safety laws at Liverpool Magistrates' Court after the coroner concluded a number of failures by Wirral Council contributed to the incident. This case highlights the importance of landowners managing the risk posed by trees alongside the highway and in public areas by conducting regular tree safety inspections. If you would like to discuss a survey please contact Mark Townsend.

And finally…
It’s not the cow farts
Burger King has released an advertisement to encourage US farmers to change cow diets and reduce methane emissions. The ad features children in cowboy hats singing about the impact cow flatulence has on global warming. But academics and farm leaders alike quickly pointed out that flatulence is not to blame: “IT’S. NOT. THE. COW. FARTS.” tweeted Prof Frank Mitloehner of University of California Davis. He added "Nearly all enteric methane from cattle is from belching. Suggesting otherwise turns this serious climate topic into a joke". The advert stems from research which found that feeding cows 100g of dried lemongrass a day for three to four months reduces methane emissions by up to 33% on average. But even the academics behind the research have been shocked by the ad, saying Burger King is “just using some cliché connotations of farming to get clickbait".