NFU response to pre-budget report

The NFU has expressed relief that agricultural property has not had its exemption from inheritance tax removed after the delivery of today’s Pre-Budget Report by the Chancellor, Alastair Darling. The NFU had lobbied vigorously to protect the relief in recent weeks following rumours that it may be reduced or even scrapped.

The NFU also approved the extension of empty property relief which brings benefits for diversified farming businesses hit by the recession. However it expressed its dismay at the decision to further increase employer National Insurance contributions which will further raise the cost of employment in the farming sector and undermine business competitiveness. The NFU is also questioning the logic of reducing the incentive to participate in Climate Change Agreements, agreements which have already produced significant carbon savings.

Diversified farm businesses will also be disappointed that the proposed repeal of the Furnished Holiday Legislation has been enacted, without the full consultation that the NFU has lobbied for.

NFU President Peter Kendall said: “We have said that a vibrant and productive farming sector depends, in part, on a tax system that stimulates investment and innovation while also encouraging farmers to take a long-term view of their businesses. This Pre-Budget statement talks long about investment but falls short of the mark when it comes to delivering the fiscal measures that would really stimulate investment on farming businesses. As agriculture takes a long-term view of its future, facing up to the challenge of feeding a growing global population while impacting less on the environment, we also need a long-term vision from the Treasury.

“I’m glad that the Chancellor has avoided making commitments to reduce departmental spending in today’s report. Given the strategic importance of the farming sector in meeting the challenges of growing demand for food and a low-carbon economy it is important to think carefully about where efficiency gains can and should be sought.”

Notes to Editors:
1. Further analysis of the Pre-Budget Report will be available on NFU Online. 

 

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