Because of the existing concession, new stud farms will not receive the mandatory farm diversification relief. That is the same as the maximum mandatory relief under the farm diversification scheme. Thus so long as it is on farm premises, either a stud farm or a horse enterprise of the sort that the hon. Gentleman mentioned will be eligible for the same amount of mandatory relief. Clauses 3 and 4 of the Bill relate to village shops.
Local shops provide an essential service for rural communities.
In 1998, we implemented the village shop rate relief scheme, which provides 50 per cent. In addition, local authorities can give discretionary relief of up to 100 per cent. In last year's local government finance Green Paper, we consulted on a proposal to extend the mandatory rate relief to other food shops, pubs and petrol stations. Earlier this month, we extended mandatory rate relief to the sole pub or petrol station in small villages, with effect from 5 April 2001. The Bill will do the same for small food shops in those villages.