Budget won't make difference to business, says Fens farmer

The National Farmers Union has called for a multi-billion pound budget to help support agri-businesses

Paul Day on his farm near Wisbech
Author: Dan MasonPublished 30th Oct 2024

A farmer near Wisbech believes business won't change even if the Government boosts its support for agri-businesses in today's Autumn Budget.

The National Farmers Union (NFU) - which represents growers in the UK - has written to the Chancellor to help deliver a multi-year agriculture budget of £5.6 billion.

It's hoped the NFU's plan would give further support to businesses working in agriculture and strengthen the UK's food security.

Paul Day is from Bramblebee Farms:

"I don't think it will scratch the surface for us; we're a small farm, none of this (Government support) ever seems to filter down to us so we'll just carry on as we are," he said.

"It is tough, there's not a lot of money available at the end of each month, so we keep plodding along; we could do without a lot of increases.

"I think the bigger problem we fight is we can't put our prices up perhaps 20, 30% because we're well ahead of the supermarkets, and we can't be where we perhaps need to be."

The NFU said "food security, climate change and environmental challenges we face need to be matched by a renewed and improved financial budget."

For Paul, he hopes the Budget can lead to a positive outcome.

"For a small business, it doesn't really matter what comes out (from the Budget)," he added.

"All we need is people to have more money at the end of each month in their pocket and that filters down to us, so the Budget needs to help everybody, not just farmers."

What else has the NFU asked for?

  • Clarity on APR: Confirmation that there will be no changes to APR (Agricultural Property Relief) which currently exempts farmland from inheritance tax.
  • FHL tax change: A full consultation ahead of the proposed abolition of the FHL (Furnished Holiday Lettings) regime which comes into effect in April 2025.
  • Resourcing: To ensure there is adequate departmental resourcing in place to deliver Defra's Farming and Countryside Programme, maintain flood defences, and deliver the government's new strategy to eradicate bovine TB.
  • Capital allowances to incentivise investment: The introduction of capital allowances, for both incorporated and unincorporated businesses, to incentivise the investment required in a broad range of climate smart capital investments.
  • CGT rates: If CGT (Capital Gains Tax) rates are to be increased or aligned to income tax, they should only be applied to non-business or short-term gains.
  • Rural prosperity fund: Confirmation of a further round of the REPF (Rural England Prosperity Fund). The fund is a replacement for EU structural funds such as LEADER and the Growth Programme.

What did Labour's manifesto say on Farming?

In its election-winning manifesto, Labour said it "recognises that food security is national security. That is why we will champion British farming whilst protecting the environment.

"We will set a target for half of all food purchased across the public sector to be locally produced or certified to higher environmental standards."

The Party added it would make introduce "a land-use framework" and create environment land management schemes to help farmers and nature.

It also wants to work with farmers and scientists "on measures to eradicate Bovine TB, protecting livelihoods, so that we can end the ineffective badger cull".

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