The British Horse Society has urged government to provide significant rates
relief for all riding schools - rather than the selective scheme only for
new establishments set up on farms.
The BHS, in response to government consultations, has pointed out that
riding schools are suffering severe economic difficulties leading to
closures.
The Society's Riding Schools Approval office reports that a further 272
schools closed in the last 12 months. Currently the BHS has 715 approved
schools on its list, compared with 774 in 1993. A survey conducted by the
Association of British Riding Schools last year indicated a 21 per cent
decline in numbers since 1988, with a current total of 2,371.
Mr John Prescott, Deputy Prime Minister and Environment Minister, has
announced a proposal whereby new equestrian enterprises such as riding
schools and trekking centres could receive 50 per cent rate relief, and up
to 100 per cent in some cases, for the first five years, plus short cuts
through planning regulations to use redundant farm buildings for such
enterprises. This is intended to assist the farming industry which is hard
hit economically, as a profitable form of diversification.
"We appreciate the difficulties of the farming industry and would like to
see them alleviated, but we have pointed out to government that their
proposals will provide tough new competition for existing riding schools
leading to still more closures," says Michael Clayton, Chairman of the BHS.
A BHS survey has shown that riding schools are suffering already from
competition from unlicensed, uninsured yards, many of them do-it-yourself
livery yards already proliferating on some farms.
Other factors are high business rates, imposition of the national minimum
wage, lack of qualified staff, VAT, increasing fears of litigation by
clients, and increasing competition from agricultural colleges running
equine courses.
Mr Clayton went on: "We know the government has longer term plans for small
business grants but these would not arrive in time to save riding schools
faced by the new farms legislation next year. We have also pointed out to
government that its proposals are only likely to accelerate the trend
towards do-it-yourself-riding schools springing up in redundant farm
buildings, which is already happening.
"Diversification into this market would damage the existing local providers
of equestrian services, mainly riding schools and livery yards, for which
demand is limited. The only way of achieving growth in this market in order
to support new entrants is to improve the economic conditions for riding
schools."
The BHS has told the Department of the Environment (DETR) that it greatly
regrets the omission from the government farm diversification proposals of
rate relief for the breeding and rearing of horses and ponies to the point
of sale.
The Society supports the Thoroughbred Breeders' Association in its view that
if government wishes to encourage farmers into new fields of farming
activity they should remove the obstacles in terms of planning and rates
which prevents British farmers from entering this market.
The very limited rate relief currently available to studs, which amounts to
about £1,000 off the rates bill, does not provide a significant incentive to
farmers for such diversification.
"Our competitors on the continent enjoy far better taxation arrangements in
producing sport horses which now dominate the market, to the detriment of
the British home produced sport horses," said Michael Clayton.
The BHS made the above points through the British Equestrian Federation and
the British Horse Industry Confederation which is now making consultation
responses to the DETR. The department is considering which options to take
before enacting primary legislation on farm diversification in the new year.
Press inquiries to Nichola Gregory, BHS Press Officer 08701 20 88 80
Nichola Gregory
BHS Press Officer
