The CLA View

At the CLA we operate in a busy and ever-changing sector. Our members, who are a range of farmers, landowners and rural businesses, play a crucial role in their local communities. Not only are they growing food and enhancing the environment, but they are also creating jobs, providing rural housing, and are often at the forefront of developing opportunities for rural economic growth. The CLA speaks up on their behalf, and here are some of the issues that we have been focused on recently.

Rural housing and the planning system

The CLA continues to push for the potential of the rural economy to be unleashed through its ‘Rural Powerhouse’ campaign. Many of our members are frustrated by a planning system that often adds huge cost and delays for those wanting to build sensitively designed, small scale development or diversification opportunities. No one wants to concrete over the countryside, but it should also not be treated as a museum.

The CLA is currently preparing its response to the Government consultation on proposals to reform national planning policies, which represents the most significant overhaul of the planning system since 2012.

Refreshingly, this consultation includes some wins for the CLA. Revised national policies acknowledge the rural economy through agricultural development and farm diversification, and also the need for affordable rural housing. This supports the CLA’s wider ask for the development of a small number of homes in a large number of villages.

Business rates

Rural businesses could be hit particularly hard by changes expected through the next round of business rates revaluations, with fears that bills could rise sharply for diversified enterprises.

The CLA is urging ministers to ensure business rates policy does not discourage investment in diversified rural enterprises as we believe these businesses are increasingly essential to sustaining farm incomes and supporting countryside communities.

Diversification has become increasingly important as agricultural businesses face volatile markets, rising input costs and uncertainty over future support payments.

We have warned that mounting tax burdens and operating costs are now putting the viability of businesses, such as rural wedding enterprises, at risk. Especially those that rely on seasonal trade and have invested heavily in conversions, infrastructure and visitor facilities.

We have also been working to ensure a tourist levy, which was proposed in the Budget, does not reduce the competitiveness of the UK tourism industry.

Inheritance tax

The CLA continues to lobby against the proposed reforms to agricultural property relief and business property relief for inheritance tax because of the negative impact on investment and growth.

The government’s announcement before Christmas of the rise in the threshold was welcome news, but there are still many, many businesses that will be hit hard but the inheritance tax changes.

Energy Efficiency Standards

Recently, rural landlords have finally been offered clarity on what they are required to do to make their properties more energy efficient. Many have been waiting with baited breath for the government’s response to a consultation launched in February 2025 regarding Private Rented Sector Minimum Energy Efficiency Standards (MEES).

The headlines from the latest government announcement highlight that:

• Landlords will need to meet Energy Performance Certificate (EPC) ‘C’ by 2030, where an EPC is legally required. This includes all tenancies which are within scope of the regulations.
• Landlords will need to spend £10,000 every ten (as opposed to five) years trying to reach EPC ‘C’ unless there is a valid exemption - or multiple exemptions. Previously a cap of £15,000 had been proposed. Expenditure from 1 October 2025 will count towards the cost cap.

Following the latest announcement, finally landlords have certainty about what will be required of them to make their properties more energy efficient.

The challenge of meeting EPC ‘C’ remains however, and the CLA will continue to lobby for changes to make it more appropriate for traditionally built buildings. The new regime should though make things simpler for some.

The CLA has been successful in making meaningful changes to the policy. We still await the government’s full response to the EPC consultation, and the MEES legislation which will be brought forward in 2027. There are still questions to be answered.

Renters Rights Act

With the Renters Rights Act – which aims to transform private renting in England -recently receiving royal assent, there has been a lot of change for those providing rural lettings. We continue to get questions about what this means for our members and we are engaging with government to ensure proposals are workable for those we represent.