NEW laws making it harder for thieves to dispose of stolen scrap metal have been welcomed by rural businesses.

Rogue traders who buy and sell scrap metal for cash face £5000 fine under laws designed to stamp out metal theft.

All scrap metal dealers will need to apply to their local council for a licence to operate under rules which came into effect on 1 October.

The Scrap Metal Dealers Act 2013, which clamps down on rogue traders, will also give local authorities and police new powers to inspect premises where they suspect illegal activity.

Magistrates will be able to issue fines of up to £5,000 to scrap metal dealers who trade in cash.

As well as having the power to issue licences, councils will be able to refuse or revoke licences if a dealer is deemed unsuitable.

Crime prevention minister Jeremy Browne said: "Metal theft costs the UK economy around £220 million a year and it has a huge impact on our communities - from disrupted rail services to desecrated war memorials and damaged church roofs.

"Our changes, including increasing financial penalties and banning cash payments, have already helped slash metal theft across the UK.

"This new legislation will help tighten the net around rogue dealers who flout the rules and wilfully purchase stolen metal, while reforming the system to support legitimate businesses."

The scrap metal laws will also mean all scrap metal dealers must verify the name and address of the seller at the point of sale, which is recorded and retained by the dealer.

The cashless offence will apply to all scrap metal dealers including 'mobile collectors' who collect door to door.

At the same time, there will be a single national publicly available register of all scrap metal dealers.

The Country Land and Business Association said metal theft had a huge impact on rural businesses.

Often vital pieces of equipment or building infrastructure are stolen and sold for a tiny fraction of their value, it said.

CLA president Harry Cotterell said: "We are pleased to see the results of our lobbying victory put in place so metal theft can begin to be tackled.

"Farm machinery, lead stolen from roofs, and copper cable taken from phone lines all cause major problems to rural business and communities.

"These much-needed changes to the system will give local authorities real power to combat the rise of metal theft."

Mr Cotterell added: "We believe new regulation should only be put in place in certain circumstances.

"In this case, it is crucial to deal with the menace of scrap metal thieves."