The rural sector has called for the Chancellor to use his forthcoming Budget to ease farmers’ path towards Brexit.
Rural insurer NFU Mutual has said that until Brexit plans are confirmed, UK farmers are currently unable to make long-term investment because of uncertainty about future agricultural support and export opportunities.
Tim Price, NFU Mutual Rural Affairs Specialist, said: “To help farmers through this transitional period we are urging the Chancellor to support farmers and the rural community – by simplifying both business and inheritance tax rules and avoid introducing measures that could add more financial stress to rural businesses.”
'Hike in tax bills'
One issue causing additional pressure on farm businesses was the review of business rates.
The CLA, which represents farmers and landowners, says businesses across the countryside are facing a hike in their tax bills as a result of a 'flawed' rates system that is in 'urgent need of review.'
Mr Price continued: “Farmers who have diversified and now use their premises for commercial, tourism or retail enterprises are being hit by higher business rates, which is adding to the pressures on farmers’ incomes at a time of low profitability for many farming sectors.
“We’re hoping that the Government’s promise to look at this issue will result in the immediate implementation of full planned rises being delayed.”
Increasing fuel duty
Farmers and rural businesses are also concerned about measures to reduce pollution from diesel vehicles in urban areas by increasing fuel duty.
Mr Price said: “This could unfairly hit farmers and country people who rely on diesel vehicles such as 4 x 4s, vans and lorries. These vehicles are crucial for thousands of rural businesses.”
The Chancellor, Philip Hammond, has announced that the government will publish its next Spring Budget on Wednesday 8 March 2017.
The Spring Budget sets out the government’s plans for the economy based on the latest forecasts from the Office for Budget Responsibility.
