Farm orgs criticise 'farm-blind' Budget
Several leading British farm and rural organisations have criticised the Autumn Budget for not providing more support for the agricultural sector.
The Budget was delivered yesterday (Wednesday, October 28) by Chancellor John Healey, with an extension of the 5p cut to fuel duty for a further six months unveiled.
A series of tariff cuts had been announced 24 hours before the Budget, which included the tariff on fertiliser imports until the end of 2027.
However, no changes were made to the inheritance tax.
Tenant Farmers Association
The Tenant Farmers Association (TFA) expressed "deep disappointment and frustration" that the government had not taken forward any of the proposals from the association's Budget submission.
TFA chief executive George Dunn said: “This has been a farm-blind Budget.
"It is deeply frustrating that the Government has done nothing to implement the practical changes we proposed to support secure tenancies, productive investment and resilient farm businesses.
"This is another major missed opportunity for the farming industry.
"The lack of movement on sensible inheritance tax changes is particularly regrettable."
Dunn said TFA had asked for protection where the death of a joint agricultural tenant leaves the surviving tenant with a tax liability but no saleable capital asset.
He added: "The survivor needs to keep farming and not face a bill that business cannot fund."
According to Dunn, the government has agreed that people paying rent on residential tenancies should not be liable for Stamp Duty Land Tax on that rent.
"Continuing to levy SDLT on agricultural tenancies penalises longer agreements when we should be encouraging them,” he said.
Dunn called on the government to "stop overlooking the realities of tenant farming" and adopt the measures recommended by the TFA.
"Agriculture is central to food security, rural economic growth and environmental recovery.
"A Budget that fails to address the foundations of a resilient farming industry falls short of what the nation needs,” Dunn said.
National Sheep Association
The National Sheep Association (NSA) said the Budget does not go far enough to address the wider financial pressures facing UK agriculture.
NSA chief executive Phil Stocker said: “There is little in today’s Budget for the UK’s sheep farmers to get excited about.
"Life will go on much as it has for some time. Sheep prices are likely to stay strong, but so are costs, and uncertainty about the direction ahead is making farmers nervous about investing.
"This Budget does little to address the decline in the UK’s food security and self-sufficiency, or the pressures behind food inflation."
He said the cuts to fuel duty, red diesel and VAT on household electricity "will do nothing for the viability of UK farming and food production".
"The national sheep flock is still shrinking, and nothing here gives farmers the confidence to invest and rebuild.
"The sheep sector can make a significant contribution to food security, exports and rural jobs, but it needs a clear commitment to its future," Stocker said.
Country Land and Business Association
Country Land and Business Association (CLA) president Gavin Lane said that rural Britain has been "overlooked" once again.
He said: "“The Chancellor says he wants growth in every postcode, but once again, the challenges rural areas face have been overlooked.
"There are too many policies that stifle growth and entrepreneurship in the countryside, and there is still an ignorance of the unique difficulty of running a rural business.
"We welcome the extension to the red diesel tax cut and the increase in the business rates threshold.
"However, at a time when 9 out of 10 CLA members are cancelling investment in their business, it is hard to see what in this Budget will change their mind.”
