It is intended to help ensure that isolated settlements continue to have access to essential community services. It was first proposed last September in the local government finance Green Paper and has been revised in the light of responses to that consultation. This additional help to rural communities will be even more welcome at this particularly difficult time. Last September we published the Green Paper Modernising Local Government Finance. It included a proposal to extend the 50 per cent mandatory element of village shops rate relief scheme to certain pubs, petrol filling stations and food shops.
Primary legislation is needed to extend it to food shops.
Bill introduced on 16th March. All small businesses in designated villages with populations below 3,000 are already eligible for discretionary rate relief of up to 100 per cent, providing that the local authority feels they are of benefit to the community. That proposal was widely welcomed, although there were some concerns over the detail which, in some cases, was felt to be too restrictive. In the light of these comments, under the order there will be no restrictions on ownership and no requirement to provide specific community services. Although this measure is not directly related to the foot and mouth disease outbreak, it will provide additional help to these important rural businesses in the short term and secure services to village communities in the longer term.