The new Government’s affect on the rural economy

David Hebditch, head of Chesterton Humberts rural practice, advises:

The coalition partners have focussed on different aspects of the rural economy and we await with interest and concern to see which policies will be implemented.

Farmland, which has been increasing in value since Spring 2009, will become even more valuable if the Conservative proposal to extend brownfield land status to land previously occupied by agricultural buildings is implemented.  Allowing a wider range of uses gives owners and prospective buyers far more opportunity to bring jobs and income to rural property.

The Liberal Democrat pledge to cut subsidies from those they identify as the wealthiest recipients could have an unintended impact on rural employment, which would negate their efforts to aid poorer farmers.

Its unclear how the Liberal Democrats proposal for a food market regulator will align with the Conservative proposal for a supermarket ombudsman but the fact that both parties recognise the need for a more active approach in preventing anti-competitive practice is welcome

While the rural sector broadly welcomes the Conservative recognition of farmland as a valuable national resource, it is not yet clear how the new government will implement rules preventing development of the most fertile farmland or how this will affect the value of farmland so designated.