asked Her Majesty's Government:
What assessment they have made of the effect of the proposed planning gain supplement on the ability of farm businesses to respond to the Government's encouragement to diversify their enterprises in respect of (a) owner occupied holdings, and (b) holdings farmed by agricultural tenants. [HL3009]
The Government have consulted twice on their proposals for a planning gain supplement (PGS) and have met a broad range of stakeholders, including representatives of farm businesses. The latest round of consultation closed on 28 February 2007 and the Government are evaluating the responses and carefully considering stakeholder views. The Government will continue to work with stakeholders in order to better understand the impact of PGS on businesses.
As announced at the 2005 Pre-Budget Report and consulted on in both 2005 and 2006, the planning gain supplement (PGS) would apply only to developments that require full planning permission, subject to minimum thresholds. The Government are keeping the scope of PGS under review.
The Government have consulted a wide range of stakeholders during the development of the planning gain supplement (PGS), including those involved in specialist agricultural valuations. The Valuation Office Agency, an executive agency of HM Revenue and Customs, gives advice to the Government on valuation matters and has led work on valuations for PGS.