To agree the smallholdings policy framework.

The Cabinet Member Corporate Customer Services and Human Resources, Councillor JP French presented the report and drew Cabinet’s attention to the key headline issues contained in the document which acknowledged the valued contribution to the local economy of the Council’s smallholdings estate and the opportunities available to people to both enter into farming and progress to larger farms.  It was clarified that the policy recommendations would pertain to the Council’s smallholdings estate, with the exception of those managed on behalf of the Buchanan Trust.  Members are asked to consider and agree; a Smallholdings Policy Framework and accompanying action plan, the creation of a £25,000 allocation (from existing rental income) to create a match funded enterprise development fund, and for Cabinet to receive an annual update on progress in delivering the action plan.  Cabinet was reminded that a revised action plan had been circulated prior to the meeting which superseded that which had been included in the original agenda pack.

The Cabinet Member Corporate Customer Services and Human Resources advised Members that as part of the 2009/10 budget setting process, an additional £1.5million of capital expenditure had been made available at a rate of £500,000 per annum for improvements to the estate.  As a result it would be important to demonstrate value for money on such a significant investment.  Currently the average rate of rental income remained static at £420,000 per annum with the Council averaging an outlay of £240,000 per annum on the day-to-day management, repair and maintenance of the estate.  An additional capital spend of £200,000 had been made to cover the costs of upgrading electrical wiring on the estate.  A further £900,000 of required maintenance had been identified via a five year rolling programme of conditions surveys, this included works required to meet the relevant Decent Homes standard.

The Cabinet Member advised Members that the requirement for a capital receipts target of £10million within 10 years (from April 2005), as included in the former smallholdings estate policy had been removed.  Members were also informed that the current omission within corporate documentation of the positive contribution of the smallholdings estate to meeting council priorities would be rectified.  The contribution of the Strategic Monitoring Committee Members and their comments which helped inform the review were acknowledged as were the meetings with tenants, Herefordshire Young Farmers and a visit to Staffordshire County Council.

Members were advised of the outline of the policy framework which had, at is core, a clear aim to assist people seeking a career in farming and to allow progression.  Particular attention was drawn to the fact that the Council would only consider requests from tenants to sublet in exceptional circumstances and that consideration would be given to further six year renewals of tenancies subject to the meeting of a defined criteria.  In relation to the rents of smallholdings, the levels would be reviewed regularly and compared solely against similar smallholding properties.  The Cabinet was additionally advised that the policy framework outlined the necessity to consider surplus farm houses and farm buildings whilst maintaining productive agricultural land.  In the event of disposal of surplus buildings, some land would be included for the provision of a garden.

In discussion Members were of the view that the smallholdings policy should emphasise the mixture of farming opportunities and not be too prescriptive on the nature of the farms, as the types of farming undertaken would be dependant on many factors, not least the economic environment.

The Chairman of the Strategic Monitoring Committee, Councillor PJ Edwards, commented positively on the smallholdings policy and was pleased that additional consultation had been undertaken, however he expressed disappointment that agricultural land had been disposed of prior to completion of the smallholdings review.  For consistency and clarity, it was requested that the dual measurements of hectares and acres were used in the policy.  The approach to starter and progression farms outlined in the policy was applauded, as this was considered a way of valuing local food, drink and produce.  Councillor Edwards stated that the policy did not address possible integration of smallholdings and the possibilities of capitalising on such opportunities.  This issue was noted by the Cabinet Member who stated that any changes to smallholdings would be monitored with opportunities assessed and, where appropriate grasped.

Responding to comments raised by Members, the Cabinet Member emphasised that any land which would accompany the disposal of surplus buildings would be adequate for a garden, it was not envisaged that larger parcels of land would accompany any disposal.  Responding to a comment regarding the justification of retaining the Council’s smallholdings estate, the Cabinet Member assured Members that the action plan outlined the need to investigate all options relating to the future management and tenancy options of the smallholdings estate, which would include consideration of full repairing tenancies. 

Members strongly welcomed the policy’s recognition that the smallholdings houses should comply with the relevant decent homes standard.  The Cabinet Member stated that local members would be kept informed on the progress of the action plan.

RESOLVED That:

(a)   the Smallholdings Policy framework contained in the report be agreed subject to amended wording at para 63 to read: “the Council will maintain an appropriate mixture of farm opportunities”;

(b)   That the action plan be agreed (revised version circulated separately to the main report).

(c)   The creation of a £25,000 allocation from existing rental income to create a match funded enterprise development fund be agreed; and

(d)   Cabinet receives an annual update on progress in delivering the action plan.