HOLD your horses, it's not that bad.

That's the assurance from the Government for equestrian businesses in North Yorkshire, worried at the prospect of a new "manure tax".

Race horse trainers and riding schools in the county have been kicking up a stink about a plan by the Government to turn horse muck into brass.

But Defra, the Department of the Environment, Food and Rural Affairs, told the Evening Press that the new law, which comes into force in July, will not affect every equestrian business.

A spokesman said that private individuals and most liveries, stables and other establishments that keep horses will not be hit by the charges.

The new ruling means that livery yards, studs and riding schools in North Yorkshire which compost muck to use as a fertiliser must have a permit costing up to £500.

They could also find themselves shelling out thousands of pounds to install leak proof concrete flooring beneath their muck heaps with a sealed holding tank for the liquid which runs off.

One of Britain's top trainers, Tim Easterby, who has 120 horses at Great Habton, Malton, uses the pure muck as a fertiliser on his own fields.

He said: "Who dreamed this up? Someone should get to the bottom of it.

"Anyone who pays this ridiculous tax wants their heads examined.

"No one has fully informed us.

"This wants stopping before it starts."

Della and Doug Horn feared that the consequences for their Naburn Grange Riding Centre in Naburn could be dire. They have up to 20 horses and given that the average horse excretes nine tonnes of manure a year they have to deal with a large dung pile.

Della said: "We want to get rid of it. A friendly nearby farmer wants it to fertilise his farm with pure manure. He takes it away. If we or he is forced to pay out money then we are lumbered."

If they had to spend thousands of pounds on a liquid waste tank, then it would hit their 25-year-old riding school hard. "A lot of people won't be prepared to pay that sort of money," she said.

"Everything is getting very expensive with increases in regulation, and it is getting close to not being viable at all. The Government obviously don't want anybody in the countryside."

A Defra spokesman said: "So long as the heap is simply manure and no other products are added to it then there will be no need to pay for a waste licence or apply for an exemption from one.

"Adding other products will need a licence because this is classified as composting."

The Forum Of Private Business warned there were many small equestrian firms which will be hit hard and accused the Government of failing to carry out a proper impact assessment.

Updated: 11:23 Friday, May 13, 2005