THE British Horse Society is pressing for rate relief on all riding schools, not just those on farms.

Earlier this year the Government put forward proposals as part of its Action Plan for Farming, that farms starting up equestrian businesses should benefit from reduced rates and sympathetic planning guidance.

In response, the BHS pointed out this would create unfair competition to existing schools which were already facing considerable difficulties through high business rates, the impact of the national minimum wage and the growth of unlicensed and uninsured yards.

Those specific proposals have been dropped, but another consultation paper from the DETR - Rate Relief for Farm Diversification Enterprises - widens the proposals to include all new small businesses on farms.

The government holds that the revised proposals will reduce competitive pressure on existing equestrian businesses - but the BHS believes such new enterprises will still have an unfair advantage against the existing schools, many of which are already struggling to survive.

Mr Michael Clayton, BHS chairman, said: "We were concerned that the original proposal would simply have accelerated the turnover of farm buildings to do-it-yourself livery establishments."

The Government are proposing mandatory 50pc rate relief available to properties with rateable values of no more than £6,000. This would be worth £1,248 per year in England in 2000/2001.

Smaller properties, which pay less in rates, would receive proportionately less in relief. This relief would be available for five years from the legislation coming into force.

Mr Clayton explained: "We have pressed government to include horse breeding as an area of enterprise on farms which should benefit from rates and tax relief.

"Horse breeding and rearing on farms is simply another form of animal husbandry.

"It has been a major impediment for those attempting to breed British sport horses that they are subject to taxes not imposed by the leading European sport horse breeding nations on their breeders.

"We are pursuing this issue with government in our continuing negotiations during the vital consultation period before new legislation is attempted in this area.